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By Sophie Robinson-Tillett
Tom Kuh, the former head of ESG indices for MSCI, has taken up the reins at a new index division of sustainability and artificial intelligence specialists Truvalue Labs.
The move comes as the US-based firm announced a partnership with German index provider Solactive to launch its first ESG indices out of Truvalue Index, where Kuh will be Head of Index.
Kuh spent more than seven years as Executive Director of ESG Indices at MSCI, where he oversaw a major expansion of the company’s sustainability products, including its Low Carbon Leaders and Target families, and the highly-regarded green bond index with Bloomberg Barclays.
Now, he will construct indices for institutional, wealthy and retail investors. The benchmarks will cover broad market, alpha and thematic approaches, using ESG factors based on Truvalue Labs’ artificial intelligence process. This process involves by-passing self-disclosed company information on sustainability, and trawling raw data to build up profiles.
The first series of products will take Solactive’s Global Benchmark range as a starting universe, and apply a selection criteria based on data volume and ESG scores. According to Solactive, backtesting shows outperformance across different markets.