• Implementation matters: Goldman Sachs Asset Management’s analysis shows that the ups and downs of sustainable equity fund performance in recent years had more to do with the tilts and biases built into these strategies than with anything intrinsic to sustainability itself.
• More resilience in fixed income: the history of performance in sustainable fixed income puts the equities story in perspective. Returns have shown less dispersion, and flows have been more resilient in fixed income largely due to the reduced impact of sector, style or thematic tilts in these strategies.
• Back to basics: sustainable investing is investing first and foremost, and the rules of portfolio construction and risk management apply. Goldman Sachs Asset Management think robust portfolio construction and a more nuanced view of the trade-offs between thematic exposure and tracking error can contribute to more consistent outperformance over time.

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