Eq: Tech

Companies within the Disruptive Innovation space have generated higher levels of idiosyncratic risk relative to broad markets and major asset classes, creating stronger alpha opportunity for skilled active managers…see the full story on our partner’s site

ESG investing is all the rage, but it has its limitations. Passive funds prevent real change by creating a stagnant environment that doesn’t encourage change, just look at how much C02 has increased despite all of the ESG inflows, or greenwashing where companies appear to be more environmentally servicing than they necessarily are. Active ESG investing (AESG) could be a game changer because it can rely on qualitative analysis and trends of a company to select them in an ESG fund rather than a gameable statistic. Additionally, active funds can have a bigger impact on diversity in board selection because it can have real corporate accountability rather than once again hitting a target statistic. Active funds can also put together better incentive structures to bring more companies into the ESG fold.

FINSUM: AESG funds is the logical evolution of standard ESG by merging two booming subsectors, and this is the time for active fund outperformance given ultralow yields.

The COP26 summit was last week, and the United Nations climate change conference drew leaders from around the globe to address rising global temperatures and greenhouse gas emissions. On Tuesday the conference pivoted to the role of science and innovation in greenhouse gas reduction. The 23 countries came together to announce four ‘innovation missions’. These missions would undertake projects for new clean technologies, c02 removal and new renewable fuels and chemicals. Global temperatures on a projection to rise by 2.4 degrees celsius by 2030, outpaces the target set by the Paris agreement. French President Macron suggests that nuclear energy be a larger part of the energy production in Europe moving forward in order to combat climate change.

FINSUM: C02 reduction is a growing technology field in the combating climate change and plants are being built around the globe.

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