FACTOR INVESTING, ESG, MDI STRATEGIES EXAMINED
|
|
- Allen Campbell
- 5 years ago
- Views:
Transcription
1 FACTOR INVESTING, ESG, MDI STRATEGIES EXAMINED A Special Industry Event held by: Benefits and Pensions MONITOR
2 Factor Investing, ESG, MDI Strategies Examined Pension investment strategy is playing an increasingly important role in plan management as sponsors look for ways to manage risk, increase returns, and meet their funding obligations. The Benefits and Pensions Monitor Meeting and Events Pension Investment Strategies session brought together a collection of experts who shared current thinking on factor investing and determining ESG (environmental, social, and governance) criteria that is financially material to individual assets in a portfolio. Joining Vincent de Martel, factor investing specialist with Invesco s Global Investment Solutions team; and Adam Hornung, Associate Director, Investment Strategy, for Russell Investments Canada, RICL Institutional Business; was Kevin Zhu, Managing Director and Head of Portfolio Construction at OPTrust; who described its shift to a member-driven investment strategy. In our work with institutional investors, we find three potential situations regarding factor investments, said Vincent de Martel, factor investing specialist with Invesco s Global Investment Solutions team. Investors may have no or a balanced factor exposure. Investors may also have a balanced factor exposure due to deliberate tilts such as an active stance into momentum or value to deliberately create an unbalance. In large organizations, this could be the result of different teams having different tilts. Finally, there is the case of unknown factor exposure where an investor has not yet looked at factor exposures they hold or their managers, knowingly or not, have been using but haven t told their investors or have realized themselves that they are. This why building a solid foundation for factor investing starts with an analysis of what is being invested in exactly, he said. The returns of any strategies can be attributed to three major factors macro, Vincent de Martel, a factor investing specialistt with Invesco s Global Investment Solutions team; and Adam Hornung, Associate Director, Investment Strategy, for Russell Investments Canada, RICL Institutional Business; and Kevin Zhu, Managing Director and Head of Portfolio Construction at OPTrust; shared some of the current thinking on Pension Investment Strategies at a Benefits and Pensions Monitor Meetings & Events session. style, and alpha. A factor is a quantifiable characteristic of any security that helps determine the risk and return of that particular asset. To distinguish between these factors, de Martel used a music analogy. Macro factors are what kind of music you re listening to classical, pop. That determines the baseline. The style factor determines the particular style. Maybe it s pop, maybe it s disco, reggae, or techno. The third one the alpha is the genius. Being in Canada, it could be Neil Young who was actually born here or pick your own favourite artist, but it s really what s special and makes a difference, said de Martel. Once these three exposures have been unbundled, they can be analyzed and in- 1 BENEFITS AND PENSIONS MONITOR May 2018
3 Number One Trend According to a survey from the PRI (Principles for Responsible Investing), the number one trend asset owners are acting on is climate change. In terms of incorporating climate change considerations into portfolios, however, the solution set is evolving. There are much clearer directives now than several years ago. As well, a report by the Taskforce on Climate-related Financial Disclosures (TCFD) made a number of recommendations with the most prominent being that climate change presents global markets with both risks and opportunities that cannot be ignored. This is a key consideration when thinking about climate change and carbon risk and how to incorporate it in portfolios, he said. How ESG factors are measured is also changing. First-generation metrics used a risk-management lens such as looking at the carbon footprint of a company. Many realize that carbon reserves can be a fairly significant financial risk, said Hornung. However, as the TCFD pointed out, we not only want to focus on the risk side, but also the opportunities. One way is to identify opportunities with companies in the industries that are most at risk such as utilities or powervestment decisions made on how much to invest in each. Which factor to use depends on what the investor is looking for. If you re looking for returns in the long run, that s going to be macro factors. The benefit is that over the last 150 years, they have been unconditionally rewarded so you don t need specific skill. Style factors are a little more appealing in that we re moving from having just asset classes to owning these styles which can give you an additional return uncorrelated to the market and it can last for decades. Alpha is, of course, the one that s harder to find and to keep over time, he said. This makes the biggest challenge determining which factors to use within these. The problem is there s no official list. PCA (principle component analysis) is a statistical analysis which reveals that four macro factors explain 90 per cent of the returns of any asset class. For example, corporate bonds give exposure to two factors interest rates and credit. Other factors include growth, real rates, and emerging markets. By and large, what you find is there are only a limited number of factors that can help you replicate the performance of any asset class, said de Martel. One can also use a more qualitative approach moving from macro to style factors since human biases are one of the main reasons for the existence of style factor premiums. Researchers have discovered about 200 biases investors tend to favour although there is a smaller number of major categories. These biases create price dislocations investors can benefit from as prices revert back to fundamentals. One worth focusing on is momentum. Momentum is the tendency to extrapolate price movements. By the way, some managers don t believe in momentum, so if you look at the Norway pension fund as an example, they decided that they didn t want to invest in momentum because they believed there s no premium there. The reality is that it has actually delivered good results over time, he said. Value Another is value. The tendency of investors is to focus too much on the glamorous stocks which tends to make them overpriced in the long run. Identifying assets that really can be determined to have good value through time requires a more con- trarian approach. This is the value approach found in the earnings yield or price-tobook calculations. With implementation, the details are important because there are some very different methodologies for ranking stocks. When building a factor portfolio, a score is put on each security. However, managers have different methodologies, so it s important to understand how each index is constructed because the details can have a large difference in performance. Adoption has been primarily focused on the larger institutions to begin with, but we see it starting to trickle down and now become available to a larger number of investors, he said. Stakeholder pressure and regulatory shifts are just two of the reasons the incorporation of ESG (environmental, social and governance) considerations into portfolios is growing, said Adam Hornung, Associate Director, Investment Strategy, for Russell Investments Canada. Both internal and external stakeholders are getting more vocal on this topic and want to explore what incorporating these factors specifically carbon reduction means to the performance of their portfolios. Regulatory and political shifts are taking place throughout the globe. Countries like France are instituting regulations around disclosing how climate change considerations are being incorporated into investment decision-making, so going beyond general ESG integration he said. Difference Between Views In terms of the relative importance of environmental issues versus social or governance considerations, there is a difference between the views of asset owners and asset managers. One survey shows asset owners overwhelmingly believe that issues related to the environment are more than double the importance of both social and governance issues. Asset managers, on the other hand, ranked governance as the most important issue. Historically, asset managers have found it easier to align themselves with governance issues in researching a company s sustainability. May 2018 BENEFITS AND PENSIONS MONITOR 2
4 generation and identifying those companies in these sectors that are most progressive and investing in renewable sources of energy, he said. Marrying the underlying metrics of carbon footprint and carbon reserves with a metric of renewable energy creates a broader lens that accounts for both the risk and the opportunities and gives a better understanding on how companies are incorporating ESG into their initiatives. In the past, investment managers used a third-party provider for ESG scoring. Scores for individual institutions were based on 150 different considerations. However, these scores were very much centred around the median. Aggregating the scores made it hard to really find meaning behind different companies in different sectors, he said. Financial Materiality Looking for a better method, Russell Investments conducted research into how to identify those ESG factors that are financially material to a company and its profitability. Recognizing that not all considerations are relevant from industry to industry, company to company, the firm created a materiality map for different sectors and industries. We then weighted it based on the materiality of those issues to those sectors and effectively created a new custom ESG score for every single one of the companies in the global universe, he said. The results of the research and analysis are promising. Companies that tended to score high on material factors outperformed companies that scored high on immaterial factors. So, understanding which ESG factors are financially material to an organization may help drive performance. Although there is a strong link between performance and financial materiality of these ESG factors, our data set is still a little narrow. It s only a market cycle. We think there s a lot of evidence there that we are on the right track. We will continue to foster evolution in how we, as an industry, measure and report on the impact ESG factors have on investment portfolios, said Hornung. The top priority at OPTrust is ensuring we can deliver our pension promises in the long run, said Kevin Zhu, its Manag- ing Director and Head of Portfolio Construction. With net assets of over $20 billion, OP- Trust invests and manages one of Canada s largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with over 92,000 members and retirees. Using a diversified global portfolio with balanced risk factor exposures, the plan is fully-funded on a going-concern basis and its investment performance has been robust and consistent with a nine per cent annualized rate of return on average since its inception in Maturity Challenge However, Zhu noted that OPTrust is a maturing plan. The active-to-retiree ratio as of December 31, 2017 was 1.2 to 1, and this ratio is expected to decline further to less than one in the next five years. This is going to be a big challenge because we are going to face a net cash outflow in an increasing fashion going forward, said Zhu. As a true pension manager, our mandate is to ensure pension certainty to our members. As such, we measure our success fully based on the funded status of the plan, said Zhu. Our investment objective is to maintain our fully funded status by taking the lowest risk possible. He noted that many pension funds have struggled with properly aligning their goals and their operations, incentivizing investment teams to focus on generating extra returns to outperform the benchmark. Total portfolio return and risk are what really matter in the end, said Zhu. Under the MDI strategy, OPTrust has transformed to become a pension management organization by fully aligning our investment strategy with our mandate to keep our promise to our pensioners. We look at investments on a riskadjusted basis. For each investment we make, we want to make sure that the risk is aligned with our goals. Zhu explained that OPTrust s total portfolio management framework has two principal pillars: using a total fund-oriented mindset and approach in portfolio construction and dynamically managing risk factors through a total portfolio overlay structure. Its portfolio construction uses a risk factor-based framework and takes into consideration real world constraints such as risk, capital, and liquidity, and it then weighs the different trade-offs to strike the right balance in the portfolio. We don t operate in an ideal world and our portfolio construction exercise is challenging, like solving a puzzle with many different constraints, said Zhu. In its portfolio construction process, OPTrust separates the liquid and illiquid portions of its portfolio to account for different investment time horizons and liquidity profiles. Once illiquid exposures are known, the portfolio construction focus shifts to the completion portfolio where desired total fund risk and risk factor exposures can be managed more dynamically and effectively. Risk/Reward Profile A total portfolio overlay structure is created internally with the mandate to more dynamically manage the major risk factor exposures of the fund. The overlay committee constantly monitors and assesses external macro opportunities and risks and, within its allocated risk budget, the committee makes decisions to adjust major risk factor exposures with the goal to improve the risk/reward profile of the plan s funded status. Our experience and performance over the past two years prove that our strategy is working, and we have delivered what we promised to our members, said Zhu. We have reduced our funding risk profile, while succeeding in our ultimate goal of improving the funded status of the plan. BPM BENEFITS AND PENSIONS MONITOR WOULD LIKE TO THANK THE SPONSORS OF THIS EVENT 3 BENEFITS AND PENSIONS MONITOR May 2018
5
The Scott Trust Endowment Fund Performance Report
The Scott Trust Endowment Fund Performance Report 2 The Scott Trust Endowment Fund Performance Report Statement by the Chairman of the Scott Trust, Alex Graham The Scott Trust Endowment Fund and our other
More informationThe Morningstar Sustainable Investing Handbook
The Morningstar Sustainable Investing Handbook Dear Investor, I founded Morningstar in 1984 because I wanted to make high-quality investment information available to everyday investors to help inform their
More informationFuture Fund s Approach to Climate Risk
Future Fund s Approach to Climate Risk Joel Posters Head of ESG IFSWF Climate Change Session 3 May 15, 2017 About the Future Fund Future Fund key characteristics A sovereign wealth fund established in
More informationCHANGE AC TION PLAN A THOUSAND MILE JOURNEY
C L I M AT E CHANGE AC TION PLAN A THOUSAND MILE JOURNEY AN INFLECTION POINT Climate change is one of the most significant risks we face today. Its effects are complex and wide-ranging, and will also play
More informationMATERIALITY MATTERS. Targeting the ESG issues that can impact performance the material ESG score. Emily Steinbarth, Quantitative Analyst.
MATERIALITY MATTERS Targeting the ESG issues that can impact performance the material ESG score Emily Steinbarth, Quantitative Analyst March 2018 ABSTRACT Russell Investments has developed a new way to
More informationAccelerating the Momentum toward ESG (Environmental, Social, Governance)
Accelerating the Momentum toward ESG (Environmental, Social, Governance) Impact investing is rapidly evolving as demand grows and data is increasingly available. Strategies that utilize ESG (environmental,
More informationThe Scott Trust Endowment Fund Performance Report
The Scott Trust Endowment Fund Performance Report 2 The Scott Trust Endowment Fund Performance Report Statement by the Chairman of the Scott Trust, Alex Graham The Scott Trust Endowment Fund and our other
More informationIPE Awards 2018 Category Guidance
IPE Awards 2018 Category Guidance COUNTRY/REGIONAL AWARDS For your country or regional award, you should present a general, detailed overview of your recent activity in the past 12-15 months, focusing
More informationTARGET DATE. EVALUATION Top advisors share experiences and insights on the use of target date funds
TARGET DATE EVALUATION Top advisors share experiences and insights on the use of target date funds What are some of the factors that influence decision makers choices about target date funds (TDFs)? Is
More informationGet active with Vanguard factor ETFs
Get active with Vanguard factor ETFs Factor investing has gained attention in recent years, in part because of the rise of alternatively weighted indexes and smart-beta products. Yet factor investing has
More informationCan non-traditional (sustainability) data be material under U.S. securities laws?
Can non-traditional (sustainability) data be material under U.S. securities laws? Sustainability Accounting Standards Board: Standards for Effective Disclosure of Material Sustainability Factors to the
More informationBrunel: an overview for fund managers
DATE Brunel: an overview for fund managers Brunel Pension Partnership Ltd Contents Our values Our investment principles Investment views Investment approach Search processes Fund structures, costs Responsible
More informationRESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE
RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE OUR APPROACH NOT ALL RESPONSIBLE INVESTMENT SOLUTIONS ARE CREATED EQUAL Different organizations define responsible investing in different
More information1. Do the trustees accept the TCFD conclusion that pension funds are potentially exposed to financial risks through climate change?
Strathclyde Pension Fund Response to Environmental Audit Committee Green Finance Enquiry Request for Information 1. Do the trustees accept the TCFD conclusion that pension funds are potentially exposed
More informationTAKE CONTROL OF YOUR INVESTMENT DESTINY Increasing control over your investments.
TAKE CONTROL OF YOUR INVESTMENT DESTINY Increasing control over your investments. To appreciate the power of Factors, consider this: Humankind is formed from just 23 Chromosome pairs CMINST-13427 2 1 Yet,
More informationInvestment Insight Engage or divest? The carbon debate
November 2015 Kirsten Temple Senior Consultant JANA Kirsten is the Head of JANA s Environmental Social and Governance (ESG) & Socially Responsible Investment (SRI) team. In this role, she is responsible
More informationResponsible Investment Policy
Avon Pension Fund Responsible Investment Policy November 2016 Avon Pension Fund Responsible Investment Policy Introduction and Purpose The Avon Pension Fund ( Fund ) is a long-term investor. Our aim is
More informationESG: Impact on Companies Doing Business in America and Why They Must Care
ESG: Impact on Companies Doing Business in America and Why They Must Care 1 INTRODUCTION When the environmental, social and governance (ESG) movement first began to take shape across corporate America
More informationStatement on Climate Change
Statement on Climate Change BMO Financial Group (BMO) considers climate change one of the defining issues of our generation. Everyone, including BMO, bears responsibility for the effectiveness of the response.
More informationLazard Insights. Capturing the Small-Cap Effect. The Small-Cap Effect. Summary. Edward Rosenfeld, Director, Portfolio Manager/Analyst
Lazard Insights Capturing the Small-Cap Effect Edward Rosenfeld, Director, Portfolio Manager/Analyst Summary Historically, small-cap equities have outperformed large-cap equities across several regions.
More informationThe taxonomy of Sovereign Investment Funds
www.pwc.com/sovereignwealthfunds The taxonomy of Sovereign Investment Funds May 2015 SWF s operating in an evolving political environment The increasing influence and relevance of Sovereign Investors (SIs)
More informationResponsible Investing at Parametric
April 2017 Jennifer Sireklove, CFA Director, Investment Strategy at Parametric Principles-based investing has a long history in the United States, and recently there has been a surge of interest in incorporating
More informationPERFORMANCE STUDY 2013
US EQUITY FUNDS PERFORMANCE STUDY 2013 US EQUITY FUNDS PERFORMANCE STUDY 2013 Introduction This article examines the performance characteristics of over 600 US equity funds during 2013. It is based on
More informationDiscussion of The Promises and Pitfalls of Factor Timing. Josephine Smith, PhD, Director, Factor-Based Strategies Group at BlackRock
Discussion of The Promises and Pitfalls of Factor Timing Josephine Smith, PhD, Director, Factor-Based Strategies Group at BlackRock Overview of Discussion This paper addresses a hot topic in factor investing:
More informationAwakening the green giant
PERSPECTIVE MAY 2017 Awakening the green giant Climate change poses one of the biggest challenges of the 21st century. Still, fixed income markets lag in their response; the green bond market remains modest,
More informationQuantitative Portfolios Beyond Beta. Powered by:
Quantitative s Beyond Beta Powered by: Quantitative s (QPs) are a suite of asset class-specific investments that blend the benefits of beta investing with the portfolio customization of managed accounts.
More informationIMPACT INVESTING: ENTERING THE GOLDEN AGE
IMPACT INVESTING: ENTERING THE GOLDEN AGE Impact investing can deliver meaningful investment returns and powerful social change. Significant developments in the impact investing landscape, including advances
More informationspecial report 24 PROFESSIONAL PLANNER Gian Pandit and Ella Brown Photo by : Matthew Fatches,
Photo by : Matthew Fatches, www.mattfatches.com.au Gian Pandit and Ella Brown 24 PROFESSIONAL PLANNER Courage of conviction There is a growing sense that the time to move back into equities is drawing
More informationBEST PRACTICES FOR RESPONSIBLE INVESTING
BEST PRACTICES FOR RESPONSIBLE INVESTING Portfolio management, research, ownership and collaboration May 2018 ABSTRACT In the coming years, Responsible Investing will be routine. Understanding how Environment,
More informationIPE Real Estate Global Awards 2019 Category Guidance
IPE Real Estate Global Awards 2019 Category Guidance SILVER REGIONAL AWARDS For each regional award, the judges are looking for the leading real estate investor from that region. The regional awards are
More informationFuture World Fund Q&A
For Professional Investors and their Financial Advisers Only. Not to be distributed to or intended for use by Retail Clients. Index Fund launch Future World Fund Q&A Investing for the world you want to
More informationTo build your financial future. Ambassador Portfolio Service
To build your financial future Ambassador Portfolio Service 3 Making investing a priority 4 Because we know you are exclusive! 5 Taking diversification to the next level 8 Preserving the quality of our
More informationRESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE
RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE THIS BROCHURE IS PRINTED ON SUSTAINABLY RESOURCED AND RECYCLED PAPER STOCK OUR APPROACH NOT ALL RESPONSIBLE INVESTING SOLUTIONS ARE CREATED
More informationFixed Income ESG Survey Results
Fixed Income ESG Survey Results Executive Summary Russell Investments Fixed Income Manager Research team has conducted a second annual survey of 109 fixed income managers to assess their attitudes to Responsible
More information+ 50% by In the short term: 50% increase in low carbon investments. + investment
Responsible investment Our investment strategy to address climate change Table of contents Investing in light of a changing climate Summary Four principles A rigorous process A risk and opportunity analysis
More informationQuantitative Portfolios Beyond Beta. Powered by:
Quantitative s Beyond Beta Powered by: Quantitative s (QPs) are a suite of asset class-specific investments that blend the benefits of beta investing with the portfolio customization of managed accounts.
More informationHighly Selective Active Managers, Though Rare, Outperform
INSTITUTIONAL PERSPECTIVES May 018 Highly Selective Active Managers, Though Rare, Outperform Key Takeaways ffresearch shows that highly skilled active managers with high active share, low R and a patient
More informationTO OUR SHAREHOLDERS. Focused.
TO OUR SHAREHOLDERS Focused. When Cohen & Steers was founded in 1986, we were creating a business around a market that didn t really exist yet. Few investors owned REITs, let alone understood them, and
More informationJoel Greenblatt: The Opportunities for Active Managers are Getting Better
Joel Greenblatt: The Opportunities for Active Managers are Getting Better April 3, 2017 by Robert Huebscher Joel Greenblatt serves as managing principal and co-chief investment officer of Gotham Asset
More informationThought leadership and insights from Frontier Advisors
THE Thought leadership and insights from Frontier Advisors Issue 134 October 2017 Consultant Branka Needham joined Frontier as an Associate in 2003 and was promoted to Consultant in 2007. Her responsibilities
More informationCPAs. The preferred choice for assurance on sustainability information
CPAs. The preferred choice for assurance on sustainability information i A fiercely competitive economic climate. Escalating policy developments and environmental regulations. The impact of climate disruption
More informationA powerful combination: Target-date funds and managed accounts
A powerful combination: Target-date funds and managed accounts Summer 2016 Executive summary Salt and pepper Rosemary and thyme Cinnamon and nutmeg Great chefs often rely on classic combinations to create
More informationA Guide to ESG Portfolio Construction
A Guide to ESG Portfolio Construction Michael Branch, CFA Lisa Goldberg, PhD Pete Hand We explore six quantitative environmental (E), social (S), and governance (G) strategies that can align investors
More informationMYLIFEMYMONEY Superannuation Fund
CSF Pty Limited (ABN 30 006 169 286) (AFSL 246664) MYLIFEMYMONEY Superannuation Fund Responsible Investment Policy September 2017 Responsible Investment Policy Contents Page Contents 1. Fund Objectives...
More informationAwakening the green giant
PERSPECTIVE MAY 2017 This is for investment professionals only and should not be relied upon by private investors Awakening the green giant Climate change poses one of the biggest challenges of the 21st
More informationHow are DC schemes adapting to freedom and choice? LCP DC Scheme Survey 2018 December 2018
How are DC schemes adapting to freedom and choice? LCP DC Scheme Survey 2018 December 2018 Introduction Erica Beltrami Partner We are now three years into Freedom and Choice and we have seen many DC savers
More informationDynamic Risk Management Arrives in Target Date Funds A market-aware approach targeting better retirement outcomes
Dynamic Risk Management Arrives in Target Date Funds A market-aware approach targeting better retirement outcomes September 2018 Key takeaways Target date funds that maintain high equity allocations are
More informationAs you can see from this slide, the growth in pension costs has been tremendous.
Remarks by Larry Fink National Association of Pension Funds Investment Conference Edinburgh International Conference Centre Edinburgh, Scotland March 5, 2014 (as prepared for delivery) I want to thank
More informationImage: The Caribbean Sea and Curacao RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE
Image: The Caribbean Sea and Curacao RESPONSIBLE INVESTING ACTIVELY DESIGNING SOLUTIONS FOR THE FUTURE OUR APPROACH NOT ALL RESPONSIBLE INVESTMENT SOLUTIONS ARE CREATED EQUAL Different organisations define
More informationESG investing is not just about ethics, but risk management too November 2017
PERSPECTIVES ESG investing is not just about ethics, but risk management too November 2017 Socially responsible investing (SRI) aims to generate returns for investors while taking the sustainability and
More informationFonds de Compensation FDC SICAV Obligations EUR Actif 3
Fonds de Compensation FDC SICAV Obligations EUR Actif 3 Sustainable Approach March 2018 Amundi Sustainable Approach Sustainable and Responsible Investing has been a long standing and essential part of
More informationModest Style Bets, Modest Price
Reprinted by permission of Morningstar, Oct. 21, 2016 Modest Style Bets, Modest Price ETF SPECIALIST 10-21-16 by Alex Bryan, CFA Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) offers exposure
More informationTAKE CONTROL OF YOUR INVESTMENT DESTINY Increasing control over your investments.
TAKE CONTROL OF YOUR INVESTMENT DESTINY Increasing control over your investments. Challenge for Investors Case for Factor-based Investing What Next? The Real World Economic and Market Outlooks are Constrained
More informationActive vs. Passive Money Management
Active vs. Passive Money Management Exploring the costs and benefits of two alternative investment approaches By Baird s Advisory Services Research Synopsis Proponents of active and passive investment
More informationThe Integrated Core Approach to ESG
Capital Appreciation Risk Management Income Generation Liquidity Management ESG The Integrated Core Approach to ESG The Case for the Next Generation of ESG Investing ESGG Corporations seem to now accept
More informationCALIFORNIA STATE TEACHERS RETIREMENT SYSTEM RISK MITIGATING STRATEGIES CLASS POLICY
CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM RISK MITIGATING STRATEGIES CLASS POLICY INVESTMENT BRANCH APRIL 2017 R. Risk Mitigating Strategies Policy EXECUTIVE SUMMARY In accordance with the CalSTRS Investment
More informationIntroduction. The Assessment consists of: A checklist of best, good and leading practices A rating system to rank your company s current practices.
ESG / CSR / Sustainability Governance and Management Assessment By Coro Strandberg President, Strandberg Consulting www.corostrandberg.com September 2017 Introduction This ESG / CSR / Sustainability Governance
More information15 Week 5b Mutual Funds
15 Week 5b Mutual Funds 15.1 Background 1. It would be natural, and completely sensible, (and good marketing for MBA programs) if funds outperform darts! Pros outperform in any other field. 2. Except for...
More informationI. EQUITY MARKETS AND INSTITUTIONAL INVESTORS
Equity markets, benchmark indices, and the transition to a low- carbon economy Authors: Jakob Thomä, Stan Dupré, Fabien Hasan, Nick Robins Key Messages Equity markets have a significant share in financial
More informationAn Alternative Approach to Responsible Investing
An Alternative Approach to Responsible Investing On Thursday evening, May 18, 2017, CAIA s Boston Chapter held a panel discussion at the InterContinental Boston on An Alternative Approach to Responsible
More informationQuantitative Investment: From indexing to factor investing. For institutional use only. Not for distribution to retail investors.
Quantitative Investment: From indexing to factor investing For institutional use only. Not for distribution to retail investors. 1 What s the prudent portfolio mix? It depends Objective Investment approach
More informationExplaining risk, return and volatility. An Octopus guide
Explaining risk, return and volatility An Octopus guide Important information The value of an investment, and any income from it, can fall as well as rise. You may not get back the full amount they invest.
More informationSurvey 2017 ESG Survey
CALLAN INSTITUTE Survey 2017 ESG Survey Table of Contents Executive Summary 2 Key Findings 3 Respondent Overview 4 Defining ESG 5 ESG Factor Adoption Rates 6 ESG Implementation 12 Reasons For and Against
More informationAlternative Investment Strategies
Alternative Investment Strategies Bringing together opportunities across the alternative investments spectrum to meet investor goals August 2018 For professional investors only. Switzerland: For Qualified
More informationCHOICES FREEDOM LIFESTYLE
CHOICES FREEDOM LIFESTYLE Knowledge Comfort Certainty There s a few reason s your superannuation strategy needs a Retirement Prosperity Guide There's a few reasons professionals wealth strategy should
More informationReturn on values. UBS Investor Watch. Most sustainable investors expect better performance, bigger impact
UBS Investor Watch Global insights: What s on investors minds / 2018 Volume 2 Return on values Most sustainable investors expect better performance, bigger impact Every day, wealthy investors make spending,
More informationAdopted May 12, Statement of Investment Objectives And Principles
Statement of Investment Objectives And Principles Approved by City Council May 12, 2010 1 Statement of Investment Objectives and Principles SECTION 1: MANDATE 1.1 The Toronto Atmospheric Fund ( TAF ) is
More informationA Differentiated Approach to ESG Investing
Topic Paper April 9, 2018 A Differentiated Approach to ESG Investing PERSPECTIVE FROM TEMPLETON GLOBAL MACRO Michael Hasenstab, Ph.D. Executive Vice President, Portfolio Manager, Chief Investment Officer
More informationThis chapter was originally published in:
THE EUROMONEY INTERNATIONAL DEBT CAPITAL MARKETS HANDBOOK 2014 This chapter was originally published in: THE EUROMONEY INTERNATIONAL DEBT CAPITAL MARKETS HANDBOOK 2014 For further information, please visit
More informationShort Term Alpha as a Predictor of Future Mutual Fund Performance
Short Term Alpha as a Predictor of Future Mutual Fund Performance Submitted for Review by the National Association of Active Investment Managers - Wagner Award 2012 - by Michael K. Hartmann, MSAcc, CPA
More informationCommon Investment Benchmarks
Common Investment Benchmarks Investors can select from a wide variety of ready made financial benchmarks for their investment portfolios. An appropriate benchmark should reflect your actual portfolio as
More informationInvesco Global Factor Investing Study For public use in the United States and Canada.
Invesco Global Factor Investing Study 2018 For public use in the United States and Canada. A Important Information All material presented is compiled from sources believed to be reliable and current, but
More informationThe conversation is now
For professional clients / qualified / institutional investors only. The conversation is now Talking about the 'E' in ESG Sustainable investing (SI) has evolved from a niche topic to become entrenched
More informationSocially Responsible Personal Strategy GO TO TO LEARN MORE ABOUT OUR FREE FINANCIAL TOOLS
Socially Responsible Personal Strategy GO TO WWW.PERSONALCAPITAL.COM TO LEARN MORE ABOUT OUR FREE FINANCIAL TOOLS What is socially responsible investing? This is a very broad and somewhat subjective concept.
More informationMarket outlook: What to expect in 2018 and beyond
Market outlook: What to expect in 2018 and beyond Dave Eldreth: What does the future hold for the economy and the markets? Will inflation remain in check? And what should investors expectations for returns
More informationSTRATEGY OVERVIEW. Opportunistic Growth. Related Funds: 361 U.S. Small Cap Equity Fund (ASFZX)
STRATEGY OVERVIEW Opportunistic Growth Related Funds: 361 U.S. Small Cap Equity Fund (ASFZX) Strategy Thesis The thesis driving 361 s traditional long-only equity strategies is based on the belief that
More informationAccelerating the Momentum toward ESG (Environmental, Social, Governance)
Accelerating the Momentum toward ESG (Environmental, Social, Governance) Impact investing is rapidly evolving as demand grows and data is increasingly available. Strategies that utilize ESG (environmental,
More informationSustainable Investment Case for ESG Integration
Sustainable Investment Case for ESG Integration RI Asia 2014 Conference Bill McGrew, Portfolio Manager CalPERS Investment Office Global Governance March 5, 2014 1 CalPERS Why Sustainable Investment? We
More informationIdentifying a defensive strategy
In our previous paper Defensive equity: A defensive strategy to Canadian equity investing, we discussed the merits of employing a defensive mandate within the Canadian equity portfolio for some institutional
More informationActive or passive? Tips for building a portfolio
Active or passive? Tips for building a portfolio Jim Nelson: Actively managed funds or passive index funds? It s a common question that many investors and their advisors confront during portfolio construction.
More informationActive vs. Passive Money Management
Synopsis Active vs. Passive Money Management April 8, 2016 by Baird s Asset Manager Research of Robert W. Baird Proponents of active and passive investment management styles have made exhaustive and valid
More informationActive vs. Passive Money Management
Active vs. Passive Money Management Exploring the costs and benefits of two alternative investment approaches By Baird s Advisory Services Research Synopsis Proponents of active and passive investment
More informationGreen Muni Bonds: Responsible investing in a centuries-old asset class. July 2017 ARTICLE HIGHLIGHTS
July 2017 Green Muni Bonds: Responsible investing in a centuries-old asset class Stephen M. Liberatore, CFA Lead Portfolio Manager Responsible Investment Fixed Income Strategies TIAA Investments Joel H.
More informationESG INTEGRATION: FOCUS ON ENVIRONMENTAL RISK AND OPPORTUNITY
ESG INTEGRATION: FOCUS ON ENVIRONMENTAL RISK AND OPPORTUNITY LENORA SUKI SUSTAINABLE BUSINESS AND FINANCE ESG INTEGRATION: FOCUS ON ENVIRONMENTAL RISK AND OPPORTUNITY AGENDA WHERE INVESTORS SHOULD FOCUS
More informationOMEGA. A New Tool for Financial Analysis
OMEGA A New Tool for Financial Analysis 2 1 0-1 -2-1 0 1 2 3 4 Fund C Sharpe Optimal allocation Fund C and Fund D Fund C is a better bet than the Sharpe optimal combination of Fund C and Fund D for more
More informationChanging Times: Quantifying Research An analysis based off a selection of the largest global bulge bracket investment banks
Changing Times: Quantifying Research An analysis based off a selection of the largest global bulge bracket investment banks By Peter Bentley & Tyrone Jansen May 2014 Research continues to form an integral
More informationMorningstar s Active/Passive Barometer August 2018
Morningstar s Active/Passive Barometer August 2018 Morningstar Manager Research August 2018 Ben Johnson, CFA Director of Global ETF Research +1 12 84-4077 ben.johnson@morningstar.com Alex Bryan, CFA Director
More informationFactor investing approach and alternative illiquid investments
Factor investing approach and alternative illiquid investments ATP manages all of its investments using a common risk framework Factor-based risk composition of selected assets Good return when global
More informationETF s Top 5 portfolio strategy considerations
ETF s Top 5 portfolio strategy considerations ETFs have grown substantially in size, range, complexity and popularity in recent years. This presentation and paper provide the key issues and portfolio strategy
More informationTed Stover, Managing Director, Research and Analytics December FactOR Fiction?
Ted Stover, Managing Director, Research and Analytics December 2014 FactOR Fiction? Important Legal Information FTSE is not an investment firm and this presentation is not advice about any investment activity.
More informationSEEKING RETURNS IN PRIVATE MARKETS
HEALTH WEALTH CAREER SEEKING RETURNS IN PRIVATE MARKETS FEBRUARY 2017 Of the maxims of orthodox finance, none, surely, is more anti-social than the fetish of liquidity, the doctrine that it is a positive
More informationevestment: The evolution of hedge fund investing Institutions evolve investments at varying speed The challenges of manager selection and fee pressure
April 2015 evestment: The evolution of hedge fund investing Institutions evolve investments at varying speed The challenges of manager selection and fee pressure Guide to strategic direction of asset flows
More informationSeven Retirement Planning Traps a Financial Professional Can Help You Avoid
Seven Retirement Planning Traps a Financial Professional Can Help You Avoid By Eric D Griessel, CPA Financial Advisor 86 percent of Americans believe the nation faces a retirement crisis (National Institute
More informationSTATEMENT OF INVESTMENT POLICIES AND PROCEDURES. Board-Approved Policy
STATEMENT OF INVESTMENT POLICIES AND PROCEDURES Board-Approved Policy Effective date: October 4, 2017 Next review date: December 2017 Table of Contents 1. Purpose of the Statement of Investment Policies
More informationCOLLEGE PENSION PLAN STATEMENT OF INVESTMENT POLICIES AND PROCEDURES
COLLEGE PENSION PLAN STATEMENT OF INVESTMENT POLICIES AND PROCEDURES As Amended: November 1, 2018 TABLE OF CONTENTS Section 1: Overview / Purpose... 2 Section 2: Plan Structure and Funding / Plan Description...
More informationDisclosure Language. Morningstar Essentials September Contents 1 What guidelines must be followed?
? Disclosure Language Morningstar Essentials September 2018 Contents 1 What guidelines must be followed? 1 When submitting materials for review, where do I send it and what information do I need to include?
More informationESG. Climate Special Issue: Sink or Swim. matters FEATURES:
ESG matters Environmental, Social and Governance thought piece Issue Climate Special Issue: Sink or Swim FEATURES: 08 Guest article by Christiana Figueres, Executive Secretary of the UN Framework Convention
More informationFrom niche to mainstream: how ESG principles are reshaping investing today
June 2016 From niche to mainstream: how ESG principles are reshaping investing today Leo M. Zerilli, CIMA Head of Investments John Hancock Investments As ESG standards become more uniform and as corporate
More informationThe Frontier Line. Environmental, Social & Governance Survey. Thought leadership and insights from Frontier Advisors.
The Frontier Line Thought leadership and insights from Frontier Advisors Environmental, Social & Governance Survey December 2013 Natasha Kronouer is a Consultant working in our equities and governance
More informationCapital Idea: Expect More From the Core.
SM Capital Idea: Expect More From the Core. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Core equity strategies, such
More information