Climate scenario analysis – a unique investment framework

Climate change is one of the defining issues of our age. Its physical manifestations are negatively affecting ecosystems, human health and economic infrastructure. The transition to a zero-carbon economy presents significant challenges, but also opportunities for investors.

To properly account for these risks and opportunities we have developed a unique approach to climate-scenario analysis. Through this, we integrate the macro and micro drivers of climate impacts on asset prices within a probabilistic framework. Our insights are then embedded in our business strategy, investment processes and the development of climate-driven solutions for our clients. In doing so, we believe we can build more resilient portfolios and generate better long-term returns for clients.

Click here to read the full report. 

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A post-COVID economy

A post-COVID economy

The big difference between the vaccine rollouts and the scale of the stimulus measures across the world could result in a K-shaped global economic recovery, with much of the developed world booming but poorer countries continuing to struggle. However the

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City of Austin looks to the future

The City of Austin Employees Retirement System has turned around its five-year performance with a focus on value in active management and deconstructing its bond portfolio. As it looks to the future CIO David Veal considers venture capital and crypto investments.

Debt concerns drive Ohio allocations

Farouki Majeed is worried about the future. His concerns are centred around the implications of the enormous US federal debt; the global competitiveness of the US and Chinese economies; inflation; and the potential erosion of the value of the US dollar.

Change how we invest

Should we be thinking about investment differently in 2021? Certainly, there appears to be cause for challenge of current thinking on inflation rates and the rise of China in the new world order.

Change how we work

2020 was by just about any measure, unprecedented. Market volatility, regulatory change and the need to make decisions quickly – but largely remotely – put more emphasis than ever on dynamic and effective decision-making in pension investment committees. It was a true test of robust governance.

Change how we think

The big macro changes that have taken place over the last year require a rethink and action from investment professionals.

Coal moves to holistic management

The COVID crisis and the volatility of 2020 has revealed some lessons for the investment team at Coal Pension Trustees (CPT). It has taken a more top down view of managing its portfolio looking at economic themes, risk exposures, cashflows and its manager roster holistically. Amanda White talks to CIO Mark Walker about where it sees return opportunities, the prospect of manager consolidation and how it has embraced technology for better investment practices.

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