ESG integration, sustainability, and impact investing…While there may be overlap in the meanings of these terms, they each represent a distinct approach to “doing well while doing good” in investor portfolios.
There is no denying the impact of climate change — and associated regulatory realities — on the business of investment management. For portfolio managers, it is essential to understand how to successfully adapt and prepare for what some call the “mother of all correlated risks”. Here we expose — in three parts — what portfolio managers need to know when switching to a fully Paris Aligned Benchmark (PAB) portfolio from a current market-cap weighted (CWB) portfolio.
Ahead of the Qontigo Summit, Olivier d’Assier analyzes the cost of adapting a portfolio to meet global warming targets using a STOXX Paris-Aligned Benchmark index. The results show that an early but gradual transition can dramatically reduce the market impact and transaction costs.
This study explores the impact of the reclassification, from a risk-oriented perspective, on the STOXX® Global 1800 and STOXX® Europe 600 indices. We focus our analysis on the highest two tiers of the classification: Industry and Supersectors.
The combination of Axioma Equity Risk Models and STOXX Indices, coupled with improved monitor features, increase the ability of investors to understand the risk environment in which they are operating.
Melissa Brown discusses the STOXX® Europe 600 Paris-Aligned Benchmark Index, and the strategy driving a higher return and lower volatility than its benchmark. Learn more in our white paper, The STOXX Europe 600 Paris-Aligned Benchmark: A Better Path to Success?
September marked the tenth anniversary of Lehman Brothers’ collapse, an event that epitomizes the traumatic happenings of 2008. It’s often said that one of the effects of the global financial crisis has been a lingering risk aversion among investors, and, as a result, the pre-eminence of risk management in portfolios. This phenomenon certainly transpires if […]
Equity markets struggled in June, led by Europe and emerging economies, as US barriers on imports raised concerns that a trade war is unfolding. The STOXX® Global 1800 Index fell 0.2%1 both in dollar and euro terms in the month. The index logged a 1.5% advance in dollars for the second quarter and is now up 0.2% so […]
The violent market pullbacks that many traders had gotten used to living without are back. The STOXX® Global 1800 Index plunged 7.5%1 between Feb. 2 and Feb. 8, its steepest five-day decline since August 2015. A widely cited reason for the downtrend has been the jump in U.S. bond yields, which puts pressure on asset and financial returns. […]
The synchronized growth witnessed in 2017 is expected to continue this year, according to economists, who say markets can weather the gradual normalization of monetary policy. The world economy may expand 3.7% after growing 3.6% in 2017, according to the International Monetary Fund. The US may accelerate to 2.3% growth from 2.2%, the IMF has […]