ESG Overlay Case Study | Impact Cubed

SmartESG Overlay: SICM US Impact

Adding ESG impact without sacrificing expected returns

Case Study

Since 2019, Impact Cubed has added a risk-optimised ESG overlay onto an algorithmic investment strategy, with positive returns.*

Background:

In a move to elevate their investment offerings, Sustainable Insight Capital Management (SICM) partnered with us to integrate ESG considerations into their funds. SICM, known for its quantitative prowess in asset management, aimed to enrich its strategies without compromising its well-established investment approach.

Solution:

Through SmartESG, our systematic data-driven portfolio construction approach, we aligned the investment strategy with the UN Sustainable Development Goals (SDGs), ensuring comprehensive ESG integration, without adding expected risk.

*past returns are not indicative of future returns

Impact outcomes

5%

More SDG socially good portfolio revenue

6%

More portfolio revenue from environmental solutions

16

SDGs with positive alignment

5%

More SDG environmentally good portfolio revenue

32%

Reduction in waste produced

47%

Reduction in carbon emissions

Solution:

At our last reporting period, the fund was +10.9% vs the S&P 500 benchmark.

Kevin Parker - Managing Partner, SICM

Our partnership with Impact Cubed has proven extremely successful in offering clients a rare opportunity to achieve impact in the global public markets. We look forward to working with Impact Cubed to continue offering innovative approaches to ESG investing.