Index investing has been a boon to investors seeking accessible, diversified portfolios. However, many index-based portfolios have become notably more concentrated in recent years, in terms of both individual stock positions and sector representation. Given this reality, it’s understandable why many investors are looking at other options to build more diversified portfolios.
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Sustainability and ESG (environmental, social, and governance) have become a top priority for many businesses and organizations of all sizes seeking to do their part to operate responsibly within the limits of the worlds’ ecosystem. In this segment of Inside Scoop, Anisa Kamadoli Costa, Chief Sustainability Officer at Tiffany & Co. joins Kathy Jaffari to share her thoughts and practical guidance on ESG, covering topics such as the role of a Chief Sustainability Officer, ESG at the board level, ESG disclosures, and what the future might hold for ESG.
U.S. inflation is at its highest in four decades due to COVID-19-induced spending on goods, supply-chain issues, fiscal stimulus from the government, and very accommodative monetary policy from the Federal Reserve. But unlike last time when inflation was high, some key drivers of the current inflation are expected to fade. However, several forces are likely to be more enduring, including the high wage growth.
Most of us are familiar with the Consumer Price Index (CPI) as the headline measure of inflation. However, at the January 2012 Federal Open Market Committee, the Fed declared it would use the Personal Consumption Expenditure price index (PCE). Since the indexes are calculated differently in weight, scope, and formula, it will yield different measures of inflation. The difference will impact how investors plan to fight the rising inflation that is spurring fears of currency devaluation.
ESG—the environmental, social, and governance factor can serve as a great opportunity and platform to do better while improving your business on multiple levels. In this podcast episode, host Damien Martin sits down with guest Dirk Cockrum to define ESG, explain its potential effects, describe various ESG frameworks, and share how to get started on building your program.Here’s what’s covered:
Russia has long been designated as a technologically hostile nation. In the leadup to the conflict with Ukraine, Russia launched unprecedented, but predictable, cyber warfare operations against the Ukrainian government and civilian infrastructure. With the situation on high alert and Russia’s aggressive cyber attacks that go beyond Ukraine, a cybersecurity firm provides digital protection recommendations to help high-profile individuals and families protect themselves from the cyber warfare.
Monitoring concentration in investment managers is an important component of portfolio risk management. While portfolio-level analysis on liquidity, beta, and volatility are frequently monitored, a minority of investment teams use active risk to size managers. By considering the return profile of a manager along with its size in the portfolio, active risk provides additional insight to risk management decisions, helps build better portfolios, and contributes to better governance.
The Corporate Transparency Act requires certain newly formed and existing corporate entities to identify and disclose information on their “beneficial owners” to FinCEN. This information includes identifying the beneficial owners by full legal name, date of birth, current residential or business address, among other data. FinCEN is now seeking preliminary input on various topics that will be covered under the forthcoming CTA regulations, which will guide FinCEN in its implementation of all aspects of the new rules.
Is the Special Purpose Acquisition Companies (SPACs) market dimming? Not likely. Even as the SPAC market takes a breather from its hypersonic acceleration in early 2021, new funders are stepping into the picture. In this webcast, the presenters examined the SPAC environment, evolving deal structures, participants, and risks, as well as important federal regulation changes.
The Biden administration has unveiled a new $2 trillion infrastructure and economic recovery plan, the American Jobs Plan, which is designed to simultaneously revitalize the country’s infrastructure and combat climate change. The Plan will also give municipal investors an opportunity to focus on environmental or “green” project opportunities that range from investing in mass transportation to cleaner energy and water to climate-adaptive infrastructure.