The ESG and SRI Channel

Investing for Returns or Investing in ESG Strategies: A False Dichotomy

The emergence of “responsible investment” solutions has created an opportunity for clients to approach their portfolios more holistically and in line with their beliefs and values. The historical perception of a trade-off between optimizing returns and reflecting values is a false dichotomy.

The Blockchain Could Potentially Be as Disruptive as Amazon Was in the 1990s

With its ability to validate all transactions in an immutable electronic ledger, the blockchain has the potential to be as disruptive as Amazon was in the late 1990s. When the company went public in 1997, there were serious doubts whether people would willingly give up their credit card information just to buy a book. Since then, Amazon stock is up 8,000 percent, and founder Jeff Bezos briefly overtook Bill Gates in July to become the world’s wealthiest person.

China: A Green Giant in the Making

China is dropping its focus on “dirty” industrial growth, while making a massive shift toward renewable energy and a less resource-intensive path to economic success. This reorientation could open up substantial opportunities for equity investors.

ESG in Action: Evaluating Global Financials

Analysis of environmental, social and governance factors (ESG) is particularly important for bank investments because the confidence of their depositors and borrowers largely drives banks’ valuations.

Gold and Bitcoin Surge on North Korea Fears

China put a halt to new ICOs and crypto transactions. In response, ethereum tumbled as much as 15.8 percent on Monday, or $55 a unit. Bitcoin lost $394 a unit.

A New Approach to Reduced-Carbon Portfolios

Environmental, social and governance (ESG) investing has led to a spike in reduced-carbon portfolios. But the standard investing approach may actually be lowering exposure to carbon alternatives like renewable energy.

Reflections on the Houston Hurricane

Our primary thoughts are with the residents of Houston, where we have an office and a large community of clients.

Are You Prepared for These Potentially Disruptive Economic Storms?

I hope investors have taken steps to prepare for some potentially disruptive economic storms, including this weekend’s central bank symposium in Jackson Hole, Wyoming, and the possibility of a contentious battle in Congress next month over the budget and debt ceiling.

The Good Thing About Climate Change: Opportunities

In a new white paper, “The Good Thing About Climate Change: Opportunities,” GMO’s Lucas White and Jeremy Grantham discuss the growing problem of climate change, the exciting investment possibilities in companies combating that peril and the best ways for investors to approach the opportunity.

Let the Private Sector Take the Reins on Infrastructure

The Trump administration took its first steps to address infrastructure Tuesday, with the president signing an executive order aiming to expedite environmental review and permitting processes. Some will decry the fact that these actions weren't accompanied by a multi trillion-dollar spending bill.

A Smart Beta for Sustainable Growth

We demonstrate a smart beta that produces positive excess returns from sustainably faster growth in EPS. This simple, systematic strategy represents a significant improvement from today’s growth indices that fail to produce faster growth in EPS and have provided negative excess returns.

“Mother of All Bubbles” Keeps Gold in Focus

Today I want to discuss reports that global debt levels are at all-time highs, and what this means for your investment decisions going forward.

Revisiting the Traditional Emerging Market Equities Allocation Framework

Bhartia, a portfolio manager on GMO’s Emerging Markets Equities team, and his colleague Mehak Dua, explore the benefits of combining a risk-based approach with valuation in an asset class that has grown considerably more complex over the last three decades.

Market Overview Q217: Shaping up for a New Investment Environment

After a long period of “riding the wave” of central bank liquidity, investors are now confronted with much more difficult decisions. Andrew Lo’s new book, Adapative Markets, provides an excellent framework from which to analyze the current situation, evaluate market risks and prepare for changes.

Emerging Markets Second-Quarter 2017 Recap: The Streak Continues

Here, I share the team’s overview of what happened in the emerging-markets universe in the second quarter of 2017, including some key events, milestones and data points to offer some perspective.