Implementing sustainable and impact investing (SII) themes in investment portfolios can seem complex, leaving many investors new to SII wondering how to begin. This paper provides insight into building resilient portfolios that will contribute to and thrive in a more sustainable and equitable future.
Sustainable and Impact Investing
Environmental, social, and corporate governance considerations are integral to investing, for both risk management and long-term return potential. To that end, we integrate ESG and sustainability factors across our investment platform by assessing all material information to help our clients make prudent investment decisions.
Our sustainable and impact investing team, and our firm more broadly, take an integrated, customized approach to building portfolios that reflect our clients’ specific impact and mission objectives, without making concessions on returns. We employ a broad range of impact investing strategies, seeking to finance long-term, market-driven solutions to real societal challenges. We aim to invest in the future, eliminate greenwashing, lean into underappreciated or mispriced areas of the market, stay ahead of change, and align portfolios with fundamental long-term economic value.
We are a signatory to the UN Principles for Responsible Investment (PRI) and the Task Force for Climate-Related Financial Disclosures (TCFD).
We also partner closely with leading industry networks and impact-related affinity groups to help advance the volume of investment opportunities, create connections in the industry, and expand access to quality research and thought leadership.
Climate change and social inequality are two material and systemic risks facing the global economy and investment portfolios over the coming decades. In this paper, we demonstrate the relationship between climate change and social justice, highlight how investors can implement an intersectional approach to climate justice in their portfolios, and outline three steps investors should consider to help ensure our transition to a low-carbon economy is inclusive and just.
Our Latest Insights
Many defined benefit plans sponsors may be denying themselves valuable opportunities to generate additional returns by overestimating their liquidity needs. Targeting a liquidity supply/demand ratio of 2x–3x can help portfolios tolerate periods of market stress.
The polarizing and often misunderstood cryptoasset landscape has grown exponentially in recent years. This paper reviews some of the space’s pressing issues, considers cryptoassets in a portfolio setting, and offers some considerations of different implementation options.
As the second largest economy in the world, China remains an important destination for global investor capital. Yet, the pace and scope of China’s regulatory crackdown are causing concern. In this edition of VantagePoint, we review the nature of regulatory developments and their impact on the investment opportunity set. We believe that dedicated, strategic allocations to Chinese assets are still warranted. Investors should carefully consider their sector exposure and evaluate managers’ capabilities in the current regulatory and geopolitical environment.
The style bias of actively managed growth and value equity portfolios is not typically static. In this paper, we highlight how the strength of active managers’ style signatures have moved between value and growth and propose a simple fundamental rationale for why this happens.
Building a portfolio that incorporates both private equity and venture capital investments is not straightforward. It requires skill and discipline. In this paper, we review recent private investment performance, discuss how these investments have benefited institutional portfolios, and provide some high-level tips on how to build winning portfolios.
Investor interest in China has grown over the years as China’s economy expanded and the market opened up to foreign capital. However, environmental, social and governance (ESG) issues remain a key concern for many investors.