Smart beta and Environmental, Social and Governance (ESG) integration have both gathered strong momentum, with significant asset growth in strategies using each discipline. Multifactor smart beta strategies, with their longer-term focus and factor diversification, provide a natural platform for the integration of ESG.
The earth’s climate is becoming warmer because of things we (humans) have done. Since the climate, along with the atmosphere and water, forms the infrastructure of our lives, climate change will affect us pervasively.
The drivers of environmental markets are deeply rooted and continue to gather momentum. Population growth, increasing urbanization, climate change, environmental policy and regulation, and inadequate infrastructure are profoundly shaping global markets.
For an industry that prides itself on mastering risk management, finding value and uncovering arbitrage opportunities, I think the financial services sector is falling flat. Why? Because most firms are overlooking one of the biggest investment opportunities ever: women.
We often use the term “underwater” to describe money-losing investments in finance. That may not be a euphemism for long. Of the world’s 15 largest stock exchanges, all but four are in coastal cities, and all could face the prospect of literally being submerged underwater as sea levels rise.
Millennials are expected to receive a record-breaking intergenerational wealth transfer of over $30 trillion yet only 30 percent of advisors are looking for clients under the age of 40.1 Why? Because reaching my generation can be difficult and keeping us happy is even harder.
What makes for an efficient financial market? Any market participant could probably list ten things without burning a calorie, but one thing that would probably make everyones list is information. Financial markets need information in order to work efficiently.