Published February 2020
The ESG integration paradox
Today the concept of ESG and the benefits it can bring to the investment analysis is rather widespread. But there is still a large discrepancy in the understanding and the definition of sustainable investment. The added value in the evaluation of a company’s risk profile, the sustainability profile of the company’s operation in the long run, and future opportunities in a changing world – can create comparative advantages, and are all key parameters together with conventional valuation parameters in a well-made analysis of the return potential. The ESG framework, reporting and adjustments are getting ever so important for driving capital towards those who adjust and future-proof their operations.
Published December 2019
It could be time to de-FAANG your portfolio
If the only alternative to forecasting ability is accessing the risk premium in its purest form, some investors in their search for the beta believe that passive management, defined as the investment vehicles tracking market capitalisation weighted indices, offers access to this beta. There is a myth or misunderstanding that âpassive
Published February 2019
ESG & Sustainability investing
ESG is a set of criteria/principles/factors, which is set to define responsible and sustainable investing. They originate from the UN PRI – United Nations’ Principles for Responsible Investments, launched in 2006, with more than 1800 signatories today. UN PRI consists of 6 principles, to follow to be a UN PRI Signatory. UN PRI aims to encourage long-term sustainable investments, and which measures to take to invest responsibly and sustainably. The ESG- factors are not something that is regulated or well defined, it is only a very loose set of words, which makes it very difficult to measure, evaluate or even define since different players in the financial industry interpret, implement and use these three factors in many ways. It is also the basis of an enormous amount of reporting instruments; stock exchange ESG practices, stewardship codes, memberships, corporate disclosure requirements and political initiatives, which all interpret what to focus on differently.
Published April 2018
Investing in CLO's
CLOs are an interesting asset class with an attractive risk-return profile. The loss-adjusted return of CLO “BB” is approx. 5-6 percent per annum compared with less than 3 percent per annum for “High Yield”-bonds, which further has materially higher duration. Still, CLOs are often compared with subprime CDOs which experienced heavy losses during the credit crisis. In our view, this is a misconception.
Published October 2017
Investing in Life Settlements
There are plenty of reasons to invest in life settlements. This alternative investment has developed due to a unique necessity and has caused a positive impact for both institutional investors and the insured individual.
The prolonged low interest rate environment is forcing investors to embark on paths away from traditional assets