Perspectives

Part two of our Perspectives series on ESG investing explains the factors behind the Governance rating.

You may have heard of ESG investing, but what is it really? While the Environmental component of ESG is often clear and easy to understand for individual investors, the factors considered for a Social rating can be less obvious.

Environmental, Social and Governance (ESG) investing has gained popularity in recent years as both individual and institutional investors are embracing sustainable investing and integrating ESG analysis into the investment decision-making process. There is also evidence that aligning investors’ desire for return with the needs of other stakeholders, including customers, employees, and local communities, can be a winning combination.

In a world where athleisure reigns supreme, designer brands have been faced with challenges as consumers gravitate towards value and comfort, particularly in the area of footwear. Athleisure’s influence on fashion, combined with overproduction and a consumer shift to online shopping, have all contributed to struggles for fashion/apparel companies over the last few years. But with a more direct sales strategy and a focus on innovation, non-athleisure brands have been recovering.

For investors with long time horizons, volatility should be synonymous with risk—despite recent market falls.

We’ve all witnessed the recent deterioration of retail stores in America. For decades, department stores were the lifeblood of shopping in the U.S., but now many Sears, JCPenney, and Macy’s locations sit shuttered and in disrepair.

Have you ever envisioned a future where your wallet or purse has become substantially lighter due to lack of monetary contents or perhaps a future where you don’t even need to carry a wallet at all? That future may be closer than you think.

Socially responsible investing (SRI) is becoming an increasingly important topic as investors evolve their thoughts on which corporate attributes will deliver above-average returns for shareholders. In fact, Pension and Investments recently reported that market share for SRI funds in Europe accounts for over 50 percent of assets under management, indicating an increasing willingness for investors to make SRI allocations within their portfolios.

The popularity of low-cost passive investment strategies has garnered significant press recently, leading many to question if active management is dead or simply doesn’t work. Underperformance of the average active investment manager has certainly added fuel to the fire, as investors search for cheaper index alternatives.

Millennials are described as potentially the next “Great Generation” by William Strauss and Neil Howe, the authors who originally coined the term. But up to this point, all the millennial tweeting, snapping, posting, swiping, and selfie taking hasn’t been accompanied by much in the way of investing.