Integrating impact into financial analysis

Few investors realise that traditional portfolio 10.75% construction tools can be adapted to include social and environmental goals.

Standard mean variance optimisation models map the most efficient portfolio for desired risk and return targets. Adding impact metrics to the mix, allows investors with social and environmental objectives to create efficient portfolios that serve risk, return and impact outcomes. It helps them consider the trade-offs, if any, between these three goals across different investment types and different portfolios.

You can now read the full ‘Thought Leadership’ at the link below