Mesirow Currency Management Publishes Study on "Enhancing ESG Portfolio Returns: Could Currency Alpha be an Answer?"

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Sep 17, 2021, 11:00 ET

CHICAGO, Sept. 17, 2021 /PRNewswire/ -- Mesirow, an independent, employee-owned financial services firm, today announced that Mesirow Currency Management published a new research report on whether currency alpha could be a solution to enhancing environmental, social, and governance ("ESG") portfolio returns.

The study shows that while socially responsible investing has become a key objective of pension funds globally over the past decade, it is not without its challenges if a manager seeks to enhance returns by investing in non-ESG assets:

As the demand for ESG rated equity and bond strategies increases, portfolio managers are consistently searching for ways to enhance the return-to-risk ratios of their strategies versus those of their competitors.
One obstacle to this is that investing in non-ESG assets can often impact a portfolio's overall ESG rating in a detrimental manner.
Currency, however, could offer a solution to this problem given that investing in currency alpha has an "ESG neutral" effect on the overall portfolio rating.

"As ESG equity and bond investing becomes ever more popular, many managers are seeking ways to enhance the returns of their portfolio without impacting their ESG rating," said Amy Middleton, Senior Vice President, Currency Specialist at Mesirow Currency Management and report author. "Unfortunately, the majority of investment choices open to such managers will not be 'ESG rating neutral' and may have a detrimental impact on the ESG rating a credit agency awards the fund. However, an allocation to currency alpha has neither a positive or a negative effect on the overall fund's ESG score and therefore may offer a solution to this problem."

To view previous thought leadership from Mesirow Currency Management, including ESG for Systematic FX Trading, please visit the Currency Insight section of our website.

About Mesirow Currency Management
With global headquarters in Chicago and investment presence around the world, Mesirow Currency Management manages over $124 billion* in assets for an institutional global client base and offers custom solutions to suit specific client needs. Our offerings include execution services, passive management, active currency risk management, and currency for return. For more information, please visit: mesirow.com/currencymanagement.

About Mesirow
Mesirow is an independent, employee-owned financial services firm founded in 1937. Headquartered in Chicago, with locations around the world, we serve clients through a personal, custom approach to reaching financial goals and acting as a force for social good. With capabilities spanning Global Investment Management, Capital Markets & Investment Banking, and Advisory Services, we invest in what matters: our clients, our communities and our culture. To learn more, visit mesirow.com and follow us on LinkedIn.

Mesirow was recently named one of the Best Places to Work in Chicago by Crain's Chicago Business and one of the Top Workplaces by the Chicago Tribune.

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*As of 6.30.21. Mesirow Currency Management AUM reflects assets under management for both currency risk management products (passive and active management) and alpha and macro products. Risk management product AUM reflects the total foreign currency portfolio exposure of passive and active clients' underlying portfolios allocated to the Currency Division of Mesirow Financial. Alpha and macro product AUM reflect the client's total investment amount in the alpha and macro strategies of the Currency Division of Mesirow Financial, which is calculated based on an annualized 2% volatility target. Past performance is no indicator of future results.

SOURCE Mesirow Financial Holdings, Inc.