As investors demand more ethically responsible investment opportunities, hedge fund managers are being forced to respond, which includes becoming greener, says the Emerald Wrap.
With the two-dimensional approach of risk and reward falling by the wayside, managers now must consider a four-dimensional framework that adds in impact and alignment. The far more sophisticated approach is in response to demands imposed by government, the media, and environmental and social pressure groups. Fund managers are now restructuring their portfolios to address environmental, social, and governance (ESG) issues.
The Emerald Wrap, acquired by boutique structured product provider, Instreet Investment in early 2015, entered a partnership with Impact 20/80 in May of this year to promote socially responsible impact investments. The flagship product of the Emerald Club, The Emerald Wrap was Australia’s first dedicated RI wrap platform for financial advisors and their clients.
“We believe that impact and alignment are as important as risk and reward to the future of portfolio management and construction, said Instreet managing director George Lucas says. “So we have recognized this by updating our in-house investment philosophy and investment team. We believe the days of one generic fund or answer for customers is over, with new platform technologies allowing customers to tailor their own solutions.”
“We look at all of the upcoming sectors, clean technology, renewables, 4D printing, water, health, divestment and equality, to name a few, where investors can dovetail their risk/reward goals while meeting their ESG concerns,” he said.
The Emerald Wrap believes adding technology into their equation will help them to make smarter investments toward a green, more sustainable future.