This research by MSCI provides “material extensions” of the standard stress testing methodology of portfolios. It provides a quantitative method to modify asset allocation weights in a stress scenario, and a new paradigm for translating extreme events into asset class scenarios.
To access the research click below:
Allocating_Assets_in_Climates_of_Extreme_Stress
material extensions, MSCI, stress testing
Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.
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