- Insights
- Capabilities
- Sustainability
- About Us
- My Account
United States, Institutional
Change
The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.
Key Points
- Sustainable investing can help organizations align their investments with their values while still earning potentially strong returns.
- Such strategies may provide an edge for attracting donor dollars and help family office principals engage with socially minded individuals.
- We believe understanding market inefficiencies and determining how to take advantage of them is how we can add value for our clients.
FOR MISSION-BASED ORGANIZATIONS, sustainable investing can be a differentiator that increases donor appeal, enhances positive societal impact, and adds attractive return potential to an investment portfolio. In conversations with nonprofits, including community and private foundations and endowments, as well as family offices, we are increasingly asked to provide insight and perspectives on this segment. In this paper, we cover the evolving landscape, introduce five related market inefficiencies, and offer thoughts on incorporating these approaches into a portfolio.
Wellington has nearly 50 years of experience with sustainable investing and integrating environmental, social, and governance (ESG) research and engagement into our processes. While our various strategies differ in philosophy and objective, they all aim to deliver competitive, “non-concessionary” investment returns. We do not believe investors need to sacrifice return potential when investing sustainably. In fact, we are of the mind that “sustainable” assets will increasingly become meaningful sources of investment alpha as markets ascribe more value to them.
The transition toward a low-carbon economy and strong investor interest in these solutions will likely raise the cost of capital for companies that fail to become more sustainable and lower the cost of capital for those that do. Our goal is to understand the themes and trends that support a sustainable future, recognize where market disruptions are occurring, and make investments in the best interests of our clients.
Potential benefits
As active investors and fiduciaries for our clients, Wellington aims to deliver competitive returns by applying deep research and a collaborative approach to identify investments that we believe will outperform markets and avoid those that may lag. In our view, sustainable strategies have the added benefit of offering clients the opportunity to align their investments with their values while still earning potentially strong returns. Mission-based investors now have a powerful new…
To read more, please click the download link below.
Key topics and themes
Authored by
RECOMMENDED FOR YOU
Showing
of
Insights Posts
Mid-2022 Asset Allocation & Investment Strategy Outlook
We explore the market implications of central bank policies, rising prices, and slowing growth and offer incremental steps to improving a portfolio’s return potential.
Continue reading
Article
2023-07-31
Stepping-stone investment ideas: A bridge over troubled waters?
Multi-Asset Strategist Adam Berger offers incremental investment ideas that may help asset owners improve a portfolio's return potential.
Continue reading
Quick Take
2022-10-31
Mid-2022 Global Economic Outlook
We believe heightened geopolitical uncertainty, and the new macro environment of deglobalization, higher inflation, greater global cyclicality and volatility will disrupt and drive markets.
Continue reading
Article
2023-07-31
Mid-2022 Asset Class Outlook
We offer perspectives on growth and value equities and explore ideas for shoring up your fixed income flank amid the evolving economic and market environment.
Continue reading
Article
2023-07-31
Loans from Federal Home Loan Banks: An opportunity for US insurers to enhance investment yield and total return
Learn why our Financial Reserves Management Group believes FHLB loans provide compelling potential for insurers to add alpha or increase yield by borrowing at low rates and benefitting from possible favorable treatment by ratings agencies.
Continue reading
Article
2023-07-01
Closing the return gap: A new set of “stepping stone” ideas
Multi-Asset Strategist Adam Berger offers incremental, flexible investment ideas that can be combined to help asset owners pursue their goals amid declining capital market return expectations.
Continue reading
White paper
2023-06-30
Climate from the allocator's perspective
How do different asset allocators within Wellington incorporate climate change into their investment process as markets, data and regulation continue to evolve?
Continue reading
Replay
2023-05-31
Inflation’s big comeback: Should corporate pensions care?
It’s been a long time since anyone worried about inflation getting off the ground. That seems to be changing, and for corporate plans, we think the risk is greater for return-seeking portfolios than liability-hedging portfolios. But we also believe that falling inflation is more worrisome than rising inflation. In this paper, we consider the implications and the potential role of different return-seeking allocations in preparing for various inflation outcomes.
Continue reading
Article
2022-06-30
ESG playbook for insurers: Tune out the noise
In this video interview, Insurance Multi-Asset Strategist Tim Antonelli provides a playbook for how insurers should approach ESG. Tim offers an actionable to-do list, addresses common misconceptions, and shares forward-thinking ideas to anticipate and manage risk. Tim is interviewed by Account Manager Sarah Marschok who offers color on the investment themes she is observing in the market.
Continue reading
Video
2022-06-01
Insurers: A potent plan of attack for 2021
In this video interview, Tim Antonelli offers key advice for insurers as they plan for 2021, including a robust to-do list. Tim’s role as a multi-asset insurance strategist uniquely qualifies him to offer outside-the-box ideas that can help insurers anticipate and manage risk. Tim is interviewed by Sarah Marshock, a leader on Wellington’s Financial Reserves Management Team, who offers color on the investment themes she is observing in the market.
Continue reading
video
2022-01-31
Fighting downgrade drag to reduce pension liability lag
Even robustly constructed liability benchmarks can struggle to keep pace with the liabilities they are meant to represent, and credit-rating downgrades of issuers in the benchmark are a primary culprit. In this paper, members of our LDI Team define the problem and offer ideas to help plan sponsors and LDI managers work together to fight back.
Continue reading
Article
2021-11-30
URL References
Related Insights
