The Moskowitz approach is a style of investing that focuses on socially responsible investing. It was created in the early 1990s by noted socially responsible investing expert, Robert Moskowitz. The approach emphasizes a focus on the environmental, social, and governance (ESG) factors of companies when making investment decisions, rather than just the traditional financial metrics. This is done to ensure that an investment’s returns are not just in terms of money, but also in terms of social and environmental impact.
The Moskowitz approach looks at a company or fund’s ESG performance and compares it to its peers. It then assigns a score to the company or fund based on its performance in these areas. Companies or funds that perform better in terms of ESG are given higher scores, and those that perform poorly are given lower scores. This score is then used to determine which companies or funds should be included in an investor’s portfolio.
The Moskowitz approach has been adopted by a number of investment companies and funds, and it has been used to create a number of socially responsible investment portfolios. Investors who use the Moskowitz approach are typically looking to invest in companies that are making a positive impact on the environment and society, while also generating returns for investors.
Overall, the Moskowitz approach is a way of investing that has become increasingly popular in recent years. It allows investors to make decisions that are both financially and socially responsible, and it has been used to create a number of socially responsible investment portfolios.