Podcast
Questions and Answers
What is a key aspect to consider when building a team based on responsibilities?
What is a key aspect to consider when building a team based on responsibilities?
In the context of investment universe, what are Long only funds and Alternatives examples of?
In the context of investment universe, what are Long only funds and Alternatives examples of?
Which factor plays a significant role in integrating Sustainable/Impact aspects into an organization's offerings?
Which factor plays a significant role in integrating Sustainable/Impact aspects into an organization's offerings?
What is a crucial part of Portfolio construction when considering sustainable investing?
What is a crucial part of Portfolio construction when considering sustainable investing?
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How can organizations showcase their commitment to sustainable investing through their Reporting practices?
How can organizations showcase their commitment to sustainable investing through their Reporting practices?
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Which element is particularly important when considering the impact of Governance Regulation in an organization's operations?
Which element is particularly important when considering the impact of Governance Regulation in an organization's operations?
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What should be taken into account when designing new Investment building blocks?
What should be taken into account when designing new Investment building blocks?
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What aspect contributes significantly to attracting Clients interested in Discretionary Advisory services?
What aspect contributes significantly to attracting Clients interested in Discretionary Advisory services?
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In the context of Sustainable/Impact Integration, what is a key factor considered when managing Thematic investments?
In the context of Sustainable/Impact Integration, what is a key factor considered when managing Thematic investments?
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Study Notes
Motivations and Criteria
- Other motivations for product design include Thought Leadership, Revenue, Media Factor exposure, and Doing good.
- Sustainability is used to capture ESG related opportunities, reduce ESG related risks, and report the footprint of the investment.
- The investment creates change and builds upon a familiar exposure or creates a new innovation.
Characteristics of a Product
- Not all choices are trade-offs, and the characteristics of a product are very important.
- It is often sensible to start by considering who the clients are and what their needs might be.
Regulation and Sustainability
- Major sustainability regulations include the EU Sustainable Finance Disclosure Regulation (SFDR), The EU Taxonomy, and The Corporate Sustainability Reporting Directive (CSRD).
- The year 2022 marks a significant milestone for these regulations.
- Other regulations include the UK Sustainability Disclosure Requirements (SDR) and the USA Climate Disclosures for Public Companies.
Product Launch and Marketing
- Product and marketing can be linked by launching a new product with a media campaign to increase credibility.
- An example of a product launch is shown in the Quintet video.
Building a Sustainable Investing Strategy
- A large wealth or asset manager has advantages such as a large pool of existing assets, an impressive media footprint, and impressive network.
- However, they also have disadvantages such as a complex organization and multiple stakeholders.
- A medium-sized wealth or asset manager has advantages such as board and CEO level support, a closely knit organization, and limited bureaucracy.
- However, they also have disadvantages such as a smaller pool of assets and limited media footprint.
Designing a Strategy
- Understanding your organization is key to designing a strategy, including where your firm makes money and what your clients value.
- Points of sale and offerings include discretionary, advisory, long only funds, alternatives, and integration with sustainable and impact investing.
- A team's roles should complement each other, including investment building blocks, clients, staff, and external partners.
Foundational Building Blocks
- Foundations of building a team include points of sale and offerings, investment universe, integration with sustainable and impact investing, portfolio construction, and active ownership.
- Roles in the team include research, investment universe, integration, portfolio construction, active ownership, SAA, TAA, macro, thematic, governance, regulation, policy, contracts, data, reporting tools, and asset tracking.
- The team should also have internal and external communications, including pre-sales, after-sales, reporting, RFPs, training, internal updates, management comms, industry organizations, media, and social media.
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Description
Test your knowledge on the various motivations influencing product design and the characteristics of sustainable investments. Learn about how factors such as revenue, media exposure, and doing good can impact product design decisions.
