Only 26 of 4300 companies surveyed by Governance Metrics International (GMI) have a specific clause that measures executive compensation against a sustainability metric, and institutional investors play a pivotal role in transforming this behaviour. Kimberly Gladman, director of research and risk analytics at the governance research company GMI, says investors should set the expectations that
An article written by AQR Capital Management colleagues, Cliff Asness, Roni Israelov, and John Liew, International Diversification Works (Eventually) was selected the best article in the prestigious Graham and Dodd Awards, a CFA Institute program honoring the top Financial Analysts Journal articles of 2011. It finds that despite the many critics of diversification, global portfolio
The United Nations Principles of Responsible Investment (UNPRI) will expand its focus beyond the micro focus of ESG implementation for its signatories to include thought-leadership research and public and policy debate, writes Amanda White. James Gifford, executive director at UNPRI, said the new strategy came out of its board meeting last week in Australia and
Returns should not be the sole driver of investment decisions as funds should consider the social, environmental and economic impact their capital can have, a senior official at Africa’s largest pension fund says. John Oliphant, head of actuarial and investments at South Africa’s $130-billion Government Employees Pension Fund (GEPF), says the fund considers high impact
Alternative hedge fund beta allows investors to access the returns generated by hedge funds without the pressures of finding alpha, says Fama family professor of finance at the University of Chicago Booth School of Business, Tobias Moskowitz. Moskowitz says there are three components to hedge fund returns: unique alpha, traditional market beta, and “something else”,
European pension fund service providers PGGM and PKA have agreed on an innovative knowledge exchange that eventually aims to look for joint investment opportunities as well as improving the way the funds conduct risk management and the benchmarking of investments, costs and socially responsible investing.
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