Webinar on Modern Portfolio Theory, Systematic Risk, and Investment Structures
ESG disclosure frameworks primarily focus on risks that can materially affect a portfolio company’s financials (“outside-in” risks). But what if a portfolio company engages in risks that threaten the health of real-world environmental, social, and financial systems (“inside-out” risks)? Those systemic risks become non-diversifiable systematic risks to investors, and Modern Portfolio Theory not only lacks tools to deal with that, but actually discourages investors from addressing climate change, lack of diversity, and income inequality. Yet investors do mitigate systemic risks in the real world, as practice has led theory.
In this webinar, Jon Lukomnik and Jim Hawley will discuss these concepts as highlighted in their new book, Moving Beyond Modern Portfolio Theory: Investing that Matters, which proposes, for the first time, a unified financial theory of why investors are tackling real-world issues as varied as climate change, the rise of antimicrobial resistance bacteria, diversity and inclusion, mining safety, deforestation, governance of technology, etc. We will also discuss what tools and approaches investors might use or develop to address existing gaps in risk management and disclosure frameworks, including those highlighted by the Predistribution Initiative relating to investment structures and practices. This program is an excellent opportunity to learn about why it is important to reinterpret financial materiality from thought leaders who have been at the forefront of this innovative approach.
Order the book at a discounted rate here – https://predistributioninitiative.org/s/MovingBeyondFlyer-1.pdf