Our new publication, “Moving Forward: 2021 Sustainable Investing Perspectives”, by Erika Pagel and Elizabeth Hiss, is now available. The publication is a comprehensive discussion of the sustainable investment risks and opportunities we see in today’s markets, and how we are positioning our clients’ balanced portfolios in response. We hope it is helpful and instructive for our clients and friends with an interest in sustainable investing.
The piece covers a variety of timely topics, including:
- The ongoing sea change in energy production, from fossil fuels to renewables, and how that transformation is affecting markets
- The “SPAC surge” that is providing a new source of funding for clean energy and other ESG-related opportunities, while also representing a potential valuation risk for investors
- Considerations around fossil fuel divestment
- The “BANDMATE” stocks—analogous to the FAANG stocks, the “BANDMATE” group of eight companies have a large presence in most large ESG funds, ETFs and indexes due to their strong ESG and fundamental profiles
- ESG considerations across the credit spectrum, including current opportunities in labeled bonds, as well as future potential opportunities in underpenetrated sectors such as CLOs
In addition, we provide an in-depth discussion of our current recommendations by asset class in sustainable portfolios. Finally, we offer several views of our sustainable model portfolio—including its exposure to fossil fuels, its ESG controversy exposure and portfolio allocation to various impact themes—generated through ARIS Analytics, our self-built, proprietary ESG/impact reporting tool for multiasset portfolios.
Please let us know if you have any questions about the publication or if you wish to speak to us further on the topics discussed.