Featured Appearances
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“In high-cost urban markets such as New York, the dearth of affordable housing is further exacerbated by rental stock that is lost to condo conversions. The challenge for investors in many cases is that they may not be positioned for concentrated regional exposures. The low wage growth that the U.S. economy has seen lately is another challenge; renting a home is more affordable than buying a home in more than 50% of the country. Affordable housing tends to be more resilient to economic shocks, and is less cyclical than other real estate types. The stable and durable counter-cyclical cash flows, inelastic demand profile, along with the societal benefits inherent to affordable housing are dual benefits that make the category a generally sound, risk-adjusted, market rate, impact investment.”
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“In the future, the assessment of ESG factors will likely be considered a standard step in the investment process. ESG factors are not entirely new and have existed in some form since investing began. Adoption of the term “ESG score” is more appropriate than “ESG rating” because assigning an ordinal assessment ranking that may not always be consistent with measurable financial performance can be problematic. Consequently, the scoring of ESG factors results in information that must be processed differently.”
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“There are secular trends that continue to persist and have strong investment merit, which makes an encouraging investment landscape. Corporate boards have been faced with tremendous challenges in meeting stakeholder concerns that have revenue and expense implications."
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“Climate initiatives remain important considerations for policymakers. High fossil fuel prices will likely facilitate a continued shift to renewables. U.S. SIF released its 14th edition of its report on sustainable investment trends showing that in 2022, $8.4 trillion was invested in sustainable investments, representing 14% of U.S. assets under professional management.”
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The Federal Reserve believes that risks arising from climate change may affect financial stability. There are three key investment risks related to climate change: physical, transition, and disclosure risks. Physical risks are when assets are exposed to damage by extreme weather-related events. Transition risks are when resource-based assets become devalued. Disclosure risks occur when companies face shareholder-related claims from inadequate disclosure of physical and/or transition risks.”
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"The panel debated four broad topics – opportunities, manager selection, divestment, and best practice for assessing risk. Throughout, the speakers gave candid commentary and personal experience, and of course – ideas on the best ways to gain exposure to alpha opportunities. The interactive session saw the speakers respond directly to the thoughts of the audience in two live polls asking which asset class/strategy they are most bullish on when it comes to energy transition and the risks worrying them the most, before closing with a lively Q&A."