Post on 13-Aug-2020
Socially Responsible InvestingCarol Pomare | PhD, DBA
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Welcome
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Presentation AgendaBrief description
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Presentation Agenda
1. Setting the Stage (i.e., 10 mns)
2. Traditional Investing (i.e., 20 mns)
3. Socially Responsible Investing (i.e., 20 mns)
4. Practice Scenarios (i.e., 15 mns)
5. Course Evaluation (i.e., 20 mns)
6. Questions? (i.e., 05 mns)
(90 mns)
2018 CIFP ANNUAL CONFERENCE 4
1 - Setting the Stage• Objectives• Constraints• Unique needs
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1.1 - Objectives
Mutual funds and equivalent
Pension funds
Endowment funds
Life insurance
Etc…
2018 CIFP ANNUAL CONFERENCE 6
1.2 - Constraints
Liquidity
Investment horizon
Tax consequences
Prudent person
Etc…
2018 CIFP ANNUAL CONFERENCE 7
1.3 - Unique Needs
Corporate Social Responsibility (CSR)
Socially Responsible Investing (SRI)
Environmental, Social and Governance factors (ESG)
Etc…
2018 CIFP ANNUAL CONFERENCE 8
Just Checking In
?
Review & Calculations with Demonstrations
3 conceptual questions
2018 CIFP ANNUAL CONFERENCE 9
2 –Traditional Investing• Market Efficiency• Risk and Return• Optimal Portfolio
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2.1 - Market Efficiency
Efficient Markets
Passive Portfolio Management
Active Portfolio Management
Technical Analysis
Fundamental Analysis
Portfolio Management in an Efficient Market
Resource Allocation in Capital Markets
Etc…
Calculations with Demonstrations
2018 CIFP ANNUAL CONFERENCE 11
Just Checking In
?
Review & Calculations with Demonstrations
3 conceptual and computational questions
2018 CIFP ANNUAL CONFERENCE 12
2.2 - Risk and Return Holding-Period Returns
Expected Returns and Standard Deviations
Excess Returns and Risk Premiums
Sharpe Ratios
Etc…
Calculations with Demonstrations
2018 CIFP ANNUAL CONFERENCE 13
Just Checking In
?
Review & Calculations with Demonstrations
3 conceptual and computational questions
2018 CIFP ANNUAL CONFERENCE 14
2.3 – Optimal Risk Portfolio Minimum Variance Frontier
Efficient Frontier
Security Selection
Diversification
Insurance Principle
Calculations with Demonstrations
2018 CIFP ANNUAL CONFERENCE 15
Just Checking In
?
Review & Calculations with Demonstrations
3 conceptual and computational questions
2018 CIFP ANNUAL CONFERENCE 16
3 –Socially Responsible Investing• SRI and ESG Factors• Risks and Returns of SRI and ESG Factors
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3.1 – Socially Responsible Investing (SRI) and Environmental, Social and Governance (ESG) Factors
Definition
Brief History
Growth of the Sector
Characteristics of Socially Responsible Investing (SRI)
Characteristics of Environmental, Social and Governance (ESG)
Etc…
2018 CIFP ANNUAL CONFERENCE 18
Just Checking In
?
Review
3 conceptual questions
2018 CIFP ANNUAL CONFERENCE 19
3.2 – Risks and Returns of SRI and ESG Factors
Risk
Risk for the Financial Advisor
Fiduciary Duties
Risk for the Investor
Systematic Risks and Betas
Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT)
Calculations with Demonstrations
2018 CIFP ANNUAL CONFERENCE 20
3.2 – Risks and Returns of SRI and ESG Factors
Returns
SRI and ESG Financial Performance
Heterogeneity of SRI and ESG Financial Performance
Calculations with Demonstrations
2018 CIFP ANNUAL CONFERENCE 21
Just Checking In
?
Review & Calculations with Demonstrations
3 conceptual and computational questions
2018 CIFP ANNUAL CONFERENCE 22
4 – Practice Scenarios• Morningstar• Sustainalytics• Morgan Stanley Capital International• Bloomberg• Principles of Responsible Investments• Etc…
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4 – Practice Scenarios
• Morningstar
• Sustainalytics
• Morgan Stanley Capital International
• Bloomberg
• Principles of Responsible Investments
• Etc…
Demonstrations
Just Checking In
?
Applied Scenarios to be Completed
4 applied scenarios
2018 CIFP ANNUAL CONFERENCE 25
5 –Course Evaluation
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Course Evaluation
?
Review & Calculations with Demonstrations
20 conceptual and computational questions
2018 CIFP ANNUAL CONFERENCE 27
6 –Questions ?
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