ATP Integrates ESG Into Equity Smart Beta, Backtests Show Positive Returns

ATP has adjusted its global equity smart beta portfolio to follow environmental, sustainable and corporate governance rules. This effort focuses on investing in companies whereby reducing carbon emissions is of a high priority — which is something of high importance at ATP — while maintaining the smart beta portfolio’s significant returns. According to ATP’s Christian Kjaer, backtests show that incorporating ESG has had little impact on the portfolio’s outperformance.