In theory, maximising portfolio diversification is incompatible with divesting whole sectors like energy or tobacco – one of the first approaches to environmental and ethical investing that still remains popular today. But does the practice match the theory?
In this video, Dave Barron, Head of Index Equity and Smart Beta at Legal & General Investment Management, introduces new exclusive research that aims to quantify the impact of negative sector screens on portfolio diversification.
This is a Legal & General Paid Post. The news and editorial staff of the Financial Times had no role in its preparation