Many ESG (Environmental, Social and Governance) activities do not create alpha. However, based on over 10 years of Professor Minor’s academic and proprietary research, certain types of ESG can create alpha. In particular, his research has been operationalized alongside his 3M’s ® approach to identify those investment opportunities that can provide both alpha and ESG performance. The approach is forward looking, seeking investments that can create alpha and improved ESG in the future across multiple asset classes.

To implement these findings, Argos created the Argos AlphaESG Index™. This stock index holds a basket of 200 of the top-rated US companies based on a proprietary mix of financial and ESG scoring. Stocks are systematically selected and rebalanced monthly. The stock index seeks to hold those companies expected to perform better in the future in terms of both profitability and ESG outcomes.

Currently, the index is available to both individuals and institutions through several offerings provided by BNP Paribas.