By applying the ‘Investment Clock’ framework, investors can link factor behaviour across economic cycles in the US.
Although the green economy represents an investment opportunity equivalent to a $4 trillion market cap, the rapid growth in recent years needs to accelerate further to achieve the goal of keeping global warming within 2 degrees.
The development of institutional grade financial infrastructure such as exchanges and custody arrangements has made digital assets more accessible to traditional fund houses, ETF issuers and other types of investors. Yet more consideration is needed about how to allocate to these assets and also mitigate the risks.
As investors increasingly recognise the risks and opportunities from the low carbon transition, they are incorporating a wider set of considerations into their decision making, including carbon, green revenues and environmental, social and governance (ESG) factors.
Studies show that when comparing the long-term returns of listed and unlisted real estate vehicles based on the same underlying assets, the listed sector is an effective proxy for direct property investment. However, listed real estate (LRE) has the benefit of higher transparency, diversification, unmatched liquidity and a lower hurdle to global access compared to direct property.