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Investors are increasingly seeking to design portfolios that achieve financial goals (return & risk) and have environmental and social impact. This session will look at how to assess the effect of ESG issues on macro economies and markets and how to engineer a scalable strategic asset allocation that delivers consistent financial performance and is aligned to the UN Sustainable Development Goals.
View Karen’s presentation slides here[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Karen%20Karniol-Tambour%22%2C%22job_role%22%3A%22Head%20of%20investment%20research%2C%20Bridgewater%20Associates%20(United%20States)%22%2C%22content%22%3A%22Karen%20Karniol-Tambour%20is%20the%20Head%20of%20Investment%20Research%20at%20Bridgewater%20Associates%2C%20the%20world%E2%80%99s%20largest%20hedge%20fund%20with%20%24160%20billion%20in%20institutional%20investments.%20In%20this%20capacity%2C%20she%20oversees%20a%20team%20of%20over%20150%20investment%20professionals%20researching%20and%20building%20systematic%20strategies%20to%20trade%20global%20financial%20markets.%20Karen%20oversees%20Bridgewater%E2%80%99s%20systemized%20investment%20logic%20for%20trading%20fixed%20income%2C%20with%20a%20secondary%20responsibility%20for%20equities%2C%20and%20is%20a%20regular%20author%20of%20Bridgewater%E2%80%99s%20Daily%20Observations.%20She%20meets%20regularly%20with%20investors%20and%20policymakers%2C%20and%20represented%20Bridgewater%20at%20the%20World%20Economic%20Forum%20in%20Davos%20in%202017%20and%202018.%5CnKaren%20graduated%20from%20Princeton%20University%E2%80%99s%20Woodrow%20Wilson%20School%2C%20where%20she%20studied%20under%20Nobel%20Laureate%20Daniel%20Kahneman%20and%20was%20awarded%20the%20Gale%20F.%20Johnson%20Prize%20in%20Public%20Affairs.%20%20Born%20and%20raised%20in%20Israel%2C%20Karen%20has%20worked%20with%20nonprofit%20Seeds%20of%20Peace%20since%20she%20was%20a%20teenager%20and%20serves%20as%20member%20of%20its%20Global%20Leadership%20Council.%20Committed%20to%20enhancing%20women%E2%80%99s%20leadership%20in%20finance%2C%20Karen%20is%20an%20active%20angel%20investor%20focusing%20on%20technology%20startups%20led%20by%20women.%20She%20is%20a%20Council%20on%20Foreign%20Relations%20Corporate%20Leader%20and%20was%20included%20in%20Business%20Insider%E2%80%99s%20Rising%20Stars%20Under%2035%20in%20Asset%20Management%5Cn%22%2C%22image%22%3A%2233594%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fsaker-nusseibeh-cbe-6b15a85%2F%3ForiginalSubdomain%3Duk%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Amanda%20White%22%2C%22job_role%22%3A%22Director%2C%20institutional%20content%2C%20Conexus%20Financial%20(Australia)%22%2C%22content%22%3A%22White%20is%20responsible%20for%20the%20content%20across%20all%20Conexus%20Financial%E2%80%99s%20institutional%20media%20and%20events.%20She%20is%20responsible%20for%20directing%20the%20bi-annual%20Fiduciary%20Investors%20Symposium%20which%20challenges%20global%20investors%20on%20investment%20best%20practice%20and%20aims%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20She%20is%20the%20editor%20of%20conexust1f.flywheelstaging.com%2C%20the%20online%20news%20and%20analysis%20site%20for%20the%20world%E2%80%99s%20largest%20institutional%20investors.%20White%20has%20been%20an%20investment%20journalist%20for%20more%20than%2020%20years%20and%20has%20edited%20industry%20journals%20including%20Investment%20%26%20Technology%2C%20Investor%20Weekly%20and%20MasterFunds%20Quarterly.%20She%20was%20previously%20editorial%20director%20of%20InvestorInfo%20and%20has%20worked%20as%20a%20freelance%20journalist%20for%20the%20Australian%20Financial%20Review%2C%20CFO%2C%20Asset%20and%20Asia%20Asset%20Management.%20She%20has%20a%20Bachelor%20of%20Economics%20from%20Sydney%20University%20and%20a%20Master%20of%20Arts%20in%20Journalism%20from%20the%20University%20of%20Technology%2C%20Sydney.%20She%20was%20previously%20a%20columnist%20for%20the%20Canadian%20publication%2C%20Corporate%20Knights%2C%20which%20is%20distributed%20by%20the%20Globe%20and%20Mail%20and%20The%20Washington%20Post.%20White%20is%20currently%20a%20fellow%20in%20the%20Finance%20Leaders%20Fellowship%20at%20the%20Aspen%20Institute.%20The%20two-year%20program%20consists%20of%2022%20fellows%20and%20seeks%20to%20develop%20the%20next%20generation%20of%20responsible%2C%20community-spirited%20leaders%20in%20the%20global%20finance%20industry.%22%2C%22image%22%3A%2233531%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
It is increasingly obvious that it is not feasible to be an investor without thinking hard about issues of sustainability. It is impossible to map the expected future path of the world without considering the SDGs.
The biggest change in perspective required is the evolution from risk/return to risk/return/impact. We believe it is very practical and achievable for institutional investors to consider all three dimensions. There is no need to sacrifice return in order to meet impact targets.
Investors should build a diversified portfolio of sustainable assets, scalable to your whole portfolio. Assets should be chosen that further your goals.
The sustainability investment data ecosystem is growing rapidly. What we are doing today may be ten times better in a few years.
Net zero by 2050 could be a secondary goal to the SDGs, or it could be your only goal. You can then buy assets to build a portfolio to meet that goal.
‘In our minds a lot of investors are overly skewed to equities. In our view this is a huge mistake. It leaves you very naked if something unexpected happens.’
ESG factors are critical to generating alpha simply because ESG factors are critical to the world’s present and future.
We believe it is our duty as investors to raise awareness of where we can find investible opportunities aligned to specific SDGs and where we cannot. This will help maximise opportunities and help address gaps.
One of the most important, upcoming challenges at CalSTRS is how the fund should evaluate Chinese investments from a human capital and environmental standpoint, says Chris Ailman, chief investment officer at the giant pension fund.
Princeton University Professor of International Affairs, Stephen Kotkin explains why large global investors and multinationals can lead on sustainability but national governments fail.
Integrating the SDGs involves analysing investee companies' core business, the products and services they sell, and mapping that to the SDGs. Two investors, APG and Schroders, outline the indepth process.
In an intimate case study this session at the Sustainability conference profiles the relationship between Robeco and CocaCola and how investor engagement has helped prioritise sustainability issues and drive long-term growth through a focus on the circular economy.
International negotiations like the Paris Agreement no longer work. The world needs a new framework supporting a carbon tax with both carrots and sticks to encourage participation, says William Nordhaus, Sterling Professor of Economics, Yale University and 2018 Nobel Prize winner in Economics.
In a rare insight into the portfolio construction process at Bridgewater, the head of investment research, Karen Karniol-Tambour discusses how to shift from only looking at risk and return to adopting a three-dimensional model that incorporates impact.
The Ford Foundation outlines its ability to achieve impact and returns and announces plans to invest for impact in public markets in the next 18 months. Elsewhere, renown impact investor Pictet Asset Management explains how impact investment is becoming more mainstream.
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