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ESG here to stay

Anyone who thought ESG was a passing fad can think again. The announcement this week that Mercer, which has led the consulting industry on standalone ESG ratings, will now integrate those factors across its ratings process has cemented ESG as an important investment risk and return consideration. The consultant rates more than 20,000 investment strategies […]
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Mercer integrates ESG

Mercer will integrate its proprietary environmental, social and governance (ESG) ratings across all of its manager-search and performance data, cementing ESG as a key investment consideration. The consultant rates more than 20,000 strategies, oversees more than $5 trillion of assets under advice and has $60 billion in its multi-manager products. Mercer has led the consulting […]
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Modern portfolio theory, risk and fiduciary duty

It was only a few decades ago that trustees in many jurisdictions were restricted from investing in certain assets. Fiduciary duty has evolved as the thinking about investments has changed. This is true, then, of how trustees should be applying fiduciary duty to current day investment challenges, including systemic risk and climate change risk. Ed […]
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Academics and industry unite

The gargantuan impact of systemic risk in global financial markets has been corroborated by a consortium of industry and academics collaborating to provide independent quantitative research, insight and leadership on systemic risk. Driven by director of MIT’s Laboratory for Financial Engineering,  Andrew Lo, senior managing director at State Street Global Markets, Jessica Donohue, and managing […]
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Rethink remuneration

Institutional investors around the world have been lobbying for the right to have a say on pay, a right to have an input into the remuneration of the executives in the companies they invest in. In June the UK’s business secretary, Vince Cable, laid out new plans that will give shareholders three-yearly votes on executive […]
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Kay Review recommendations tackle short-termism

Co-head of responsible investment at the £32 billion Universities Superannuation Scheme, David Russell, says asset manager engagement with companies should move away from its “almost myopic focus on remuneration” to other issues that impact value and strategy. His comments come on the back of the final report of the Kay Review of the UK equity […]
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