The role of climate change scenarios in investment portfolios

For long-term investors like GIC, climate change is a key concern given its imminent impact on the value of physical assets and companies over time. Hence factoring this into both our top-down and bottom-up processes is vital to ensuring a resilient portfolio.

Portfolio for the future

Economic super cycles are far from a new topic. Perhaps the most famous examples are the technically inspired Elliott wave and the technologically grounded Kondratiev wave, named after Soviet economist Nikolai Kondratiev, who was executed for his evangelism of the topic.

Creating value through sustainability in private markets

Investors across the landscape of private and public markets are facing ratcheting pressure to allocate their capital in ways that create progress on environmental and social issues, in addition to delivering returns. In private equity, general partners (GPs) and limited partners (LPs) are increasingly being held to account by their respective stakeholders.

Decarbonizing long-term portfolios

Millions of people around the world are saving money to meet personal goals—funding a comfortable retirement, saving for someone’s education, or buying a home, to name a few.

Globalisation after the virus

The coronavirus pandemic has cast a dark shadow over global trade. In the short term, lockdowns across the world have caused an unprecedented collapse in cross-border commerce, a rational response, guided by public health considerations. But the fear is that these negative effects will persist long after the crisis has passed. This, though, shouldn’t be a foregone conclusion.

The carbon price solution

The net-zero transition requires the rapid development at scale of new technologies, energy-efficient infrastructure, and carbon capture and storage. A carbon price, together with the elimination of fossil-fuel subsidies, would give investors powerful incentives to finance these and other imperatives.

Why the SEC is right to make climate risk disclosure mandatory

With the increasing frequency and severity of extreme weather events comes a heightened focus on the risks of climate change. But in the absence of consistent financial reporting on them, investors and companies have had to hazard their own guess of the impact on markets and the economy.

Are we at the inflection point of climate investing?

The rise of environmental, social, and governance (ESG) investing is nothing short of extraordinary. A decade ago ESG was a mysterious acronym to many and it had to compete with an alphabet soup of terms such as Corporate Social Responsibility (CSR), Responsible Investing (RI), and Impact Investing (II). ESG has risen to the top, but though popular, the acronym has suffered from varied and somewhat confusing definitions.

Decarbonizing long-term portfolios

Climate change is altering the dynamics of investing by posing meaningful risk while also offering substantial new opportunities for growth and investment. Institutional investors of all types increasingly recognize climate change as the primary driver of the greatest shift in asset allocation over the past 50 years, and investors are thinking critically about how to address this megatrend in their portfolios.

Harnessing the potential of private assets

Institutional portfolios such as corporate pension plans are increasing allocations to illiquid private assets seeking better returns and diversification. However, as allocations increase, a portfolio’s liquidity structure changes, sometimes abruptly.

Embracing Uncertainty

The significant impact of Covid on the economic and financial markets landscape has brought into focus the importance of incorporating uncertainty into any investment process. The unusual, stop-start nature of activity has no historical precedent, meaning lessons from the past are unlikely to be very helpful.