Presented by: CAIA Association and State Street Advisors
With growing concerns around climate change, the question arises: are institutional investors moving money into low carbon strategies? We measure how institutional-money, in aggregate, is flowing around this theme by constructing six low carbon strategies,
which we call “decarbonization factors.” After controlling for a range of other traditional factors, we find that between 2009 and 2018 the decarbonization factors that maximized carbon reduction also delivered the highest alpha. Additionally,
since not all factors perform well all the time, there is an attractive opportunity for investors to rotate across different strategies – implementing tilts at the sector, industry or firm level across multiple regions – to get continuous exposure
to low carbon portfolios with more attractive return profiles.
Read the background paper that will inform the discussion: Highlights | Full Paper
This event is offered in partnership with CAIA Association.
William Kelly, CEO, CAIA Association
William (Bill) J. Kelly is the CEO of the CAIA Association. Bill has been a frequent industry speaker, writer, and commentator on alternative investment topics around the world since taking the leadership role at the CAIA Association in January, 2014. Previously, Bill was the CEO of Boston Partners and one of seven founding partners of the predecessor firm, Boston Partners Asset Management which, prior to a majority interest being sold to Robeco Group in Rotterdam in 2002, was an employee-owned firm. Bill’s career in the institutional asset management space spans over 30 years where he gained extensive managerial experience through successive CFO, COO and CEO roles. In addition to his current role, Bill is a tireless advocate for shareholder protection and investor education and is currently the Chairman and lead independent director for the Boston Partners Trust Company.
George Serafeim, Charles M. Williams Professor of Business Administration, Harvard Business School
George Serafeim is the Charles M. Williams Professor of Business Administration at Harvard Business School. He has taught courses in the MBA, executive education and doctoral programs, and is currently teaching the elective course “Reimagining Capitalism: Business and Big Problems” in the MBA curriculum, which received the Ideas Worth Teaching Award from the Aspen Institute and the Grand Page Prize. He has presented his research in over 60 countries around the world, including to world leaders in government and business at events such as the World Economic Forum at Davos and the Aspen Ideas Festival. He ranks among the top 10 most popular authors out of over 12,000 business authors on the Social Science Research Network.
This event qualifies for 1.0 hours of continuing education credit for CFA charterholders.