What Is ESG Investing?
ESG investing broadly refers to the incorporation of environmental, social and governance factors alongside traditional financial analysis. Depending on the nature of the strategy, one or more approaches can be used within the investment process.
Approaches to ESG Investing
The categories defined here are based on internal specifications which are subject to change. Internal specifications may rely on investment policies and procedures and/or disclosures related to specific strategies.
ESG Integration
This investment approach, also referred to as ESG consideration, considers or integrates ESG factors alongside other factors to assess the risk-reward profile of securities. As of June 2024, 69% of New York Life Investment Management LLC (NYLIM LLC)’s assets under management incorporated ESG factors as part of the investment process.
ESG Focused
Also called positive selection, best-in-class, or inclusionary investing, this investment approach systematically considers ESG factors as a significant part of its investment thesis in order to select investments. May align with environmental or social themes.
ESG Impact
This investment approach seeks to achieve specific ESG impact(s) alongside financial returns. May align with environmental or social themes. This approach is commonly used for investors who want to invest in companies and issuers that are creating a positive change.
Stewardship
ESG incorporation generally functions alongside - or in combination with - stewardship or active ownership. Stewardship includes proxy voting and engagement with companies in dialogue and can be conducted across all portfolios.
Focusing on companies or issuers that better manage risks and opportunities may help avoid underperformers within sectors, potentially leading to better risk-adjusted returns over the long term. To gain a better understanding as to what approaches our strategies use, please refer to the table below—which is subject to change. The investment solutions listed below incorporate the ESG approach outlined in the table. Please note that other asset managers/investors may categorize their products differently than what is displayed below.
Our Spectrum of Solutions
*The fund employs a "passive management" or indexing investment approach designed to track the performance of the index, which was developed by New York Life Investments with Candriam acting as index consultant.
Featured Resources
Welcome to the Candriam Academy
(CE Approved)
Join Candriam Academy, the world’s first free-to-access accredited training platform for ESG investing.
ESG Talks: Educational, Conversational and 1 CE per Video
Candriam Academy’s ESG Talks video series focuses on today’s most pressing economic, social and environmental issues.
Risks in Supply Chain Management
Essentials Guide: Influence Change with Greater Impact
Essentials Guide: Dispelling the Three Most Common Myths
Infographic Carbon Offsetting
Responsible Investing Policies and Reports
As signatories to the United Nations-supported Principles for Responsible Investment (PRI), New York Life Investment Management LLC (NYLIM LLC) is committed to the six Principles for Responsible Investment.
Solutions for ESG Investing
Additional ESG Investing Solutions
Performance data quoted represents past performance. Past performance is no guarantee of future results. Due to market volatility, current performance may be less or higher than the figures shown. Investment return and principal value will fluctuate so that upon redemption, shares may be worth more or less than their original cost. Performance figures for all Funds reflect contractual waivers and/or expense limitations, without which total returns may have been lower. These limitations may be modified or terminated only with Board approval.
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance (this does not include the effects of sales charges, loads, and redemption fees). The top 10% of products in each product category receive 5stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Click on the product name for the most recent overall risk-adjusted Morningstar ratings shown above, including ratings by share class and time period and the number of funds in each category. The Fund page also includes the prospectus, investment objectives, performance, risk and other important information.
ESG Investing Style Risk Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, certain ESG strategies may limit exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating. There is no assurance that employing ESG strategies will result in more favorable investment performance.