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Much has been written about the negative consequences of public companies focused on short-term returns. Investors focused on quarterly earnings are usually blamed, along with the structure of executive compensation plans and pressure from the board of directors. The concern here is that companies are inhibiting investors’ ability to produce sustainable long-term returns. This debate […]
Read More… from Forbes: Asset Owners Need To Take Responsibility For System-Level Risks
It’s clear that the funds currently tying carry to impact are pioneers – and, as with any innovation, there will be wrinkles to iron out. Yet some believe it’s just too early to align impact performance to carried interest. Many are waiting to see what happens, but there are voices that suggest a fundamental rethink […]
Read More… from New Private Markets: Linking carried interest to impact
Delilah Rothenberg, co-founder and executive director of the Predistribution Initiative, which was launched in 2019 with the aim to promote workers and communities in investment structures, tells Environmental Finance that in her previous work in private markets fund management she noticed that “a lot of the mega fund managers had practices that were undermining their […]
Read More… from Environmental Finance: The billion-dollar funds that have changed impact investing
The definition of what it means to invest is changing, according to Jon Lukomnik and James P. Hawley, which means examining the limitations of the 75-year old legacy of modern portfolio theory […] “Bill Burkart and Steve Lydenberg’s 21stCentury Investing shows investors how to think about systems, the Predistribution Inititative’s“ESG 2.0” paper looks at the impact of institutional investors […]
Read More… from Top1000funds.com: Examining the limits of Modern Portfolio Theory
“The Predistribution Initiative’s Delilah Rothenberg, Raphaele Chappe, and Amanda Feldman argue that certain capital structures and investment behaviors do not lend themselves to positive impact outcomes and can often have negative impacts, especially on vulnerable communities and stakeholders. In their search for yield, investors have increased their leverage, resulting in riskier investments and a more […]
Current investment management practice – even when it is ESG- or impactflavoured – contributes to systemic social injustice and long-term investment risk. That’s the view put forward by The Predistribution Initiative, a project started in 2019 that seeks to move thinking about responsible investment forward, so it encompasses not just portfolio company activities, but also […]
Read More… from New Private Markets: Taking the ESG discussion into uncomfortable places
Research argues that institutions’ investment strategies may be undermining their own efforts to promote sustainability […] “Institutional investors may be at the forefront of the ESG movement, but a new paper suggests that they may also be contributing to the very systemic issues that responsible investors want to solve. According to the paper from the […]
Read More… from Wealth Professional: Are institutional investors too big for ESG?
A new paper argues that the investment strategies of pensions and other large investors contribute to systemic risks […] “The growing scale of institutions and the large amounts of money they need to deploy into high-risk investments is leading to consolidation among asset managers, higher global debt levels, short-term corporate behavior, and market instability, according […]
“With the pandemic casting a harsh spotlight on social problems such as income and racial inequality, large institutional investors have kicked off a flurry of shareholder engagement campaigns designed to push companies to look out for their workers and communities. While these efforts may be noble (and may even achieve some positive results), they fail […]
Read More… from Financial Times Moral Money: Coca-Cola and Delta step into the political fray
[…] ““ESG and impact investing frameworks focus on issues at the portfolio company level, but they do not take into account potential negative impacts from capital structures and investors’ influence in shaping them,” write Delilah Rothenberg, Raphaele Chappe and Amanda Feldman of the Predistribution Initiative, a multi-stakeholder initiative to improve financial structures.” […]