Cambridge Associates: ESG factors boost EM returns

Many investors are overlooking the returns boost they can get by focusing on environment, social and governance (ESG) factors in emerging-market equity strategies, according to new research. However, the same benefits are not visible for developed-market stocks. The MSCI Emerging Markets ESG Index beat its parent MSCI EM Index by a cumulative 12% in the three years since its launch in June 2016, on a total-return dollar basis. Just over half of that additional performance was attr…