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Responsible investing has taken the investment field by a storm and become mainstream. Looking ahead, investors continue to be particularly interested in two predominant ESG themes that have been main points of focus for the past several years: the climate and diversity.

Once a niche market within the investing environment, the idea of vision investing—the integration of values-alignment, investing with impact, and ESG into an investment process—has gone mainstream. In this special report, learn more about investing with a purpose and the challenges that are emerging as this landscape evolves.

While the climate crisis seems bleak, there are opportunities for a sustainable future with strong economic growth and prosperity, led by innovation and technology. It sets the stage for climate tech, where there is ample capital available to companies working on solutions for climate-related issues. In this report, we take a closer look at the risks, fundraising and investments, and the trends in this climate tech space on the path to sustainability.

Private equity has been an established asset class for institutional and private investors for well over two decades. The potential for outsize returns and exposure to the most exciting and innovative companies continues to drive investors toward the asset class.

We are currently experiencing one of the longest periods of U.S. dollar strength in the last 50 years, leading some to question if it’s time for a reversal. Learn what drives the dollar and how it impacts various asset classes and influence portfolio positioning.

When it comes to an investment strategy, it is important to consider the tracking error (TE) as it allows investors to quickly get a sense of how much deviation from a stated benchmark they could expect. This guide offers a brief explanation of the TE concept and descibes how it can be used to establish benchmark-relative performance expectations, and concludes with some statistical detail and common misconceptions. We'll also discuss the differences between realized and predicted TE.

Investors have been building bond portfolios using a laddered strategy since the early 1900s. Even in a flat or rising rate environment, a ladder’s total return can materially exceed its starting yield through the phenomenon of roll-down. The benefits of roll-down relate directly to the shape of the yield curve. To demonstrate how roll-down works, a few intuitive examples are provided.

When in the pursuit of enhanced risk-adjusted returns, investors with strong convictions are often drawn to factor investing—tilting portfolios toward a particular factor like value, low volatility, or dividend yield. While it may seem counterintuitive, a factor portfolio’s tracking error is a useful tool for ensuring they’re not taking on too much risk or unintended exposure in an attempt to generate benchmark-beating returns.

Investor anxiety is shifting from the impact of COVID-19 to the changes that may come with the removal of stimulus measures. Investors can make the transition to a new market cycle by managing their risks. Three examples, including taking advantage of dislocations, are provided to help investors prepare their portfolios.

It’s understandable that investors have questions and concerns about ESG investing in the fixed income markets. However, investors can align their values with their fixed income portfolios without sacrificing financial performance or deepening long-term risks.