Santander Named Most Innovative Bank in the world by The Banker magazine

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Photo courtesyHéctor Grisi, CEO of Banco Santander, y Ana Botín, President.

Santander has been named the Most Innovative Bank in the world by The Banker. The magazine has given the bank its highest recognition at their Innovation in Digital Banking Awards because of the bank’s successful deployment of Gravity – the bank’s home-grown digital cloud-native core banking platform, which is being implemented worldwide to help the bank become a fully digital company. The Banker describes Gravity as a “massive and ambitious project”. 

“Santander is the first major bank in the world with in-house software that digitalizes core banking, which is the  most critical part of a bank’s IT infrastructure and where the main financial transactions, such as money transfers, deposits or loans are processed, and has already migrated more than 90% of its IT infrastructure to the cloud,” according to the firm’s statement.

This transformation is allowing easier and faster access to data, more simplicity and faster time-to market, making it possible to deliver new capabilities for customers in hours, instead of days or weeks, and more  frequent app updates. It also helps the bank improve greatly its customer experience, products and services,  and drive value using real-time analytics, the memo added. 

This change will also bring significant efficiencies through cutting-edge end-to-end automation and other savings. 

Ana Botín, Banco Santander executive chair, said: “Innovation is at the heart of our transformation, helping us serve customers better while delivering profitable growth and value creation. Gravity, and many other examples across the group, are testament to this. World-class innovation is only possible with top talent, so huge congratulations to all the Santander Group colleagues building these global solutions as a team. We are extremely grateful to the Banker magazine for this recognition.” 

Santander’s core banking digital journey started in 2022 and will be completed between the end of 2024 and the first half of 2025. The transition has already been completed successfully in several businesses in UK and Chile without any service interruption, and is also well advanced in Brazil. Atthe completion of the programme, more than 1 trillion technical executions will be managed every year by the Gravity platform within Santander’s systems. 

Gravity allows parallel processing, meaning the bank can simultaneously run workloads on its existing core  banking mainframe and on the cloud, allowing it to perform real-time testing with no disruption to its businesses. Once satisfied with the stability and performance, the bank can then transition from the mainframe  system to the cloud.

In October 2022, Google Cloud announced that it would be commercializing a service to  help other companies transition from mainframe to cloud called Dual Run, which was developed on top of  Santander’s Gravity software. 

Santander’s successful cloud-native core banking platform is built upon world-class capabilities thanks to the knowledge transfer of a large team of IT professionals, some of whom created the legacy system 20 years ago and are now moving it to the cloud, as well as young developers and engineers. This gives Santander’s 16,500 software developers and engineers a modern, high-performing environment to create customer-centric applications and increase the bank’s ability to attract top talent. Santander has also reduced the bank’s energy consumption from its IT infrastructure by 70%, contributing to its responsible banking targets. 

As part of Santander’s innovation initiatives, the bank is also in the middle of a transformation to bring its 164 million customers onto a common operating model supported by a cutting-edge technology platform. This project, named One Transformation, is based on proven group operating models and proprietary technology like Gravity. For example, Santander Portugal has taken most of its operational activities out of its branches, freeing up branch employees so that they can spend more time supporting customers and on commercial activities, and Openbank has implemented process automation and made every product available digitally end to end, with simple products. The bank is now implementing One Transformation in the US, Spain and Mexico. 

abrdn Extends Wholesale and Institutional Foothold in Brazil with Capital Strategies Partnership

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The abrdn distribution team in charge of Brazil and Leonardo Lombardi, from CSP

Global asset manager abrdn announced today in Sao Paulo the completion of a new partnership with Capital Strategies Partners, the Madrid-based third party marketer firm, which will see Capital Strategies scale the delivery of abrdn funds in the Brazilian market, as well as bespoke solutions to pension funds and other institutional investors.

Working with Capital Strategies, abrdn will increase access to Brazil’s growing yet still underserved onshore market. Building on a wider push into South America’s largest wholesale market in 2023, the partnership follows the successful launch of two Brazilian Depository Receipts (BDRs) on B3 that mirror abrdn precious metal ETFs and will continue to drive interest in abrdn’s differentiated offerings from Brazilian accredited investors

The latest tie-up also builds on solid distribution foundation in South America, having secured a similar 2021 partnership in Spanish-speaking LatAm markets with Excel Capital supporting fund access in Argentina, Uruguay, Chile, Colombia and Peru. In combination, these partnerships now enable abrdn to cover a wide swath of the LatAm wholesale market and quickly and holistically address investor needs as they evolve.

“Capital Strategies has become well respected as a marketer leader in Latin America, especially in Brazil, and their platform delivers wide and efficient access to sophisticated investors and advisors,” said Menno de Vreeze, Head of Business Development for International Wealth Management – Brazil at abrdn. “abrdn’s capabilities are becoming well known in Latin America’s wealth circles, and as we further grow our presence, this is another big step that will add immediate scale and value. We’re very excited to discover the fruits of this relationship.”

Pedro Costa Felix, Partner at Capital Strategies, added: “We are now proud to be working with several of the world’s largest asset managers to deliver valuable exposure in Brazil, and are very pleased to add abrdn to that growing circle. Even as it continues to mature, it is clear that the Brazilian market already offers a compelling opportunity for abrdn and its funds, with their distinctive risk profile and specialization. We are keen to enable their successful growth in Brazil, helping to build regional reputation in LatAm and flowing in new global assets to their funds through these channels.”

Escalating ESG Backlash Presents Companies with an Opportunity

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61 percent of US companies surveyed expect ESG backlash to continue or increase over the next two years, according to a report issued by The Conference Board.

The report recommends that corporate boards and management view backlash as an opportunity to clarify their ESG strategy and communications.

The Conference Board also found that most companies are staying the course when it comes to their ESG commitments. Of the firms affected by backlash, just 11% are changing the substance of their ESG programs, while a majority are focusing more on the link between ESG and core business strategy. And nearly half are changing terminology to use terms such as “sustainability.”

“ESG backlash is an umbrella term that encompasses a range of positions from healthy skepticism to philosophical opposition to various forms of opportunism,” said Paul Washington, Executive Director of The Conference Board ESG Center. “While backlash is often fueled by people’s emotions, companies should respond objectively.

The most effective response is to ensure the company’s ESG positions align with company’s core business strategy, are supported by empirical data, and serve the long-term welfare of the company, its stakeholders, and society.”

These insights and others are featured in a new report, How Companies Can Address ESG Backlash, developed by The Conference Board in collaboration with the global CEO advisory firm Teneo.

The findings come from 1) a roundtable by The Conference Board that brought together more than 200 corporate leaders, and 2) a survey of 125 corporations, about half of which have annual revenue of over $10 billion.

U.S. Bank Announces Updates to Recent Leadership Changes

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Boreal Capital Management Roberto Vélez Miami

U.S. Bank announced several updates to previously shared leadership changes that will be effective Sept. 1.

“Our succession planning efforts have enabled us to move quickly and prudently to ensure continuity of leadership and service as senior executives have made personal and professional choices in their careers,” said Andy Cecere, chairman, president and CEO of U.S. Bank.

Terrance Robert Dolan, currently vice chair and chief financial officer, and John Stern, senior executive vice president and head of Finance, will assume new titles effective Sept. 1.

Dolan will serve as vice chair and chief administration officer overseeing the company’s combined Chief Administration Office. Stern will become senior executive vice president and chief financial officer.

The company had indicated earlier this year that these promotions were expected this fall, and both leaders have been effectively prepared for their new roles. Dolan will continue to report to Cecere, with Stern reporting to Dolan.

At the same time, Jeff von Gillern, vice chair of Technology and Operations Services, will retire on Sept. 1.

The company previously announced his intention to retire last November, and he has been gracious to stay on board to guide the company through the systems integration related to its MUFG Union Bank acquisition.

Von Gillern will remain on hand as an advisor to the CEO through the end of the year, but his remaining day-to-day responsibilities will shift to Dilip Venkatachari effective the first day of September. Venkatachari, senior executive vice president and chief information and technology officer, will then report directly to Cecere and serve as an executive officer of the company.

High Yield: The Valuations Conundrum

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Pixabay CC0 Public Domain

As rates have shifted higher, high yield is now living up to its name.

Since 2008, there have been relatively few opportunities to invest in high yield at yields above 8%. Many investors who allocated to the asset class during these times, benefited from double-digit total returns over the subsequent one-, three- and five-year periods.

Since 2008, the average annualized forward return for the Bloomberg US Corporate High Yield index ranged from approximately 11% to over 18% when the starting yield to worst was higher than 8%. The results are similar for the global high yield market.

Exhibit 1: Yields above 8% are relatively rare, and can present above-average total return potential
Yield to worst for the Bloomberg US Corporate High Yield Index

Exhibit 1: Past results are not a reliable indicator of future performance. Source: Aegon AM and Bloomberg. Based on monthly Bloomberg. US Corporate High Yield Index data from January 1, 2008 to May 31, 2023. One-, three- and five-year returns are based on the forward annualized index return for months where the starting yield to worst was above 8%. Three-and five-year returns based on 44 months and 43 months, respectively, that had starting yields of more than 8%. Data is provided for illustrative purposes only. Indices do not reflect the performance of an actual investment. It is not possible to invest directly in an index, which also does not take into account trading commissions and costs. All investments contain risk and may lose value.

Assessing spreads and future return potential

While all-in yields are attractive, spreads remain around historical averages, leaving many investors grappling with the right time to increase their high yield allocation. Given the macro uncertainty, it is unlikely that we will see sustained spread tightening in the near term, although relatively tight market technicals can exert positive pressure. 

Although spreads could be biased toward widening in the short term, we expect this could be more contained than during previous downturns given the higher-quality composition of the high yield market today relative to prior downturns.

Previous recessions have resulted in spreads widening above the 800 to 1,000 basis-point (bps) level. However, many of these periods were also during times of much lower risk-free rates. For example, the spread widening witnessed during 2020 occurred when rates were at historically low levels.

 As a recession becomes more imminent, it is feasible that spread widening is more contained to around 600 to 700 bps given the higher-quality composition of the market and the solid fundamental starting point. Additionally, periods of spread widening could be short-lived, depending on the macro backdrop.

We believe that the majority of the Federal Reserve’s rate hikes have already occurred and that when the economy turns, rates are likely to decline, which could help offset some of the spread widening.

Additionally, after massive outflows from the high yield asset class in 2022, we may well witness a wave of inflows as opportunities arise and investors shift toward overweight, which could in turn provide supportive technicals and potentially result in swift spread tightening.

 While it can be challenging to time the bottom or top of the market, we believe current yields can provide appealing long-term total return potential. In addition, we expect dislocations to emerge, presenting opportunities to capitalize on bouts of spread widening.

As shown below, the high yield index has historically generated average returns over 7% during the subsequent three- and five-year periods based on a starting OAS of 400 to 800 bps. The results are similar for US and global high yield indices. 

Exhibit 2: 3-year forward high yield index returns based on starting OAS 
Bloomberg US Corporate High Yield Index (monthly data from January 1994 through May 2023)

Exhibit 3: 5-year forward high yield index returns based on starting OAS
Bloomberg US Corporate High Yield Index (monthly data from January 1994 through May 2023)

Exhibit 3: Past results are not a reliable indicator of future performance. Source: Aegon AM and Bloomberg. Based on monthly Bloomberg US Corporate High Yield Index data from January 31, 1994 – May 31, 2023. The 3- and 5-year returns are based on the forward annualized index return for months where the starting OAS was at or above the level shown. Data is provided for illustrative purposes only. Indices do not reflect the performance of an actual investment. It is not possible to invest directly in an index, which also does not take into account trading commissions and costs. All investments contain risk and may lose value.

Time in the market, not timing the market

Overall, we believe yields around 8% can present attractive opportunities for long-term investors. Depending on your appetite for volatility, this may not be the environment to stretch for unnecessary risk in lower-quality CCC bonds, particularly when there are interesting opportunities to generate solid returns in higher-quality high yield bonds.

In this environment, we think there is a case to be made for long-term investors to consider gradual increases to high yield in an effort to capitalize on attractive yields, provided they can weather some short-term market swings. Spread widening may present opportunities to further increase allocations, however timing the bottom or top of the market can be challenging. After all, it is time in the market, not timing the market, that matters in high yield.

Over the long term, high yield has tended to deliver competitive risk-adjusted returns compared to many other fixed income assets, and even equities. As such, we believe the structural case for high yield remains very much intact. And throughout the remainder of the year, we expect high yield has the potential to generate attractive carry and solid coupon-like returns.

 

Article written by Kevin Bakker, CFA and Co-head of US High Yield; Ben Miller, CFA and Co-head of US High Yield; Thomas Hanson, CFA and Head of Europe High Yield; and Mark Benbow, Investment Manager. All of them of Aegon Asset Management.

Continúa el aumento del precio de venta de las viviendas en EE.UU.

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Los precios de la vivienda en Estados Unidos volvieron a aumentar por cuarto mes consecutivo en los 20 principales mercados metropolitanos en junio, según los últimos resultados de los índices S&P CoreLogic Case-Shiller, publicados esta semana.

“El índice S&P CoreLogic Case-Shiller U.S. National Home Price NSA, que abarca las nueve divisiones censales de EE.UU., registró una variación anual del 0,0% en junio, frente a la pérdida del -0,4% del mes anterior. El índice compuesto de 10 ciudades registró un descenso del -0,5%, lo que supone una mejora respecto al descenso del -1,1% del mes anterior. El compuesto de 20 ciudades registró una pérdida interanual del -1,2%, frente al -1,7% del mes anterior”, dice el comunicado al que accedió Funds Society.

En cuando la información interanual, Chicago se mantuvo en el primer puesto con un aumento interanual del 4,2%, Cleveland en el segundo con un 4,1% y Nueva York en el tercero con un 3,4%.

Nuevamente hubo una división equitativa de 10 ciudades que informaron precios más bajos y aquellas que informaron precios más altos en el año que finaliza en junio de 2023 en comparación con el año que finaliza en mayo de 2023; 13 ciudades mostraron una aceleración de precios en relación con el mes anterior.

En la comparación mes a mes, antes del ajuste estacional, el Índice Nacional de EE.UU. registró un aumento intermensual del 0,9% en junio, mientras que los Índices Compuestos de 10 y 20 ciudades también registraron aumentos similares del 0,9%.

Después del ajuste estacional, el Índice Nacional de EE.UU. registró un aumento intermensual del 0,7%, mientras que los Índices Compuestos de 10 y 20 Ciudades registraron aumentos del 0,9%.

“Los precios de la vivienda en Estados Unidos siguieron aumentando en junio de 2023”, afirmó Craig J. Lazzara, director general de S&P DJI.  “Nuestro National Composite subió un 0,9% en junio, y ahora se sitúa sólo un -0,02% por debajo de su máximo histórico de hace exactamente un año.  Nuestros Composites de 10 y 20 ciudades ganaron asimismo un 0,9% cada uno en junio de 2023, y se sitúan un -0,5% y un -1,2%, respectivamente, por debajo de sus máximos de junio de 2022”.

La recuperación de los precios de la vivienda es generalizada, según el índice. Los precios subieron en las 20 ciudades en junio, tanto antes como después del ajuste estacional. En los últimos 12 meses, 10 ciudades muestran rentabilidades positivas.  Dicho de otro modo, la mitad de las ciudades de la muestra se sitúa ahora en precios máximos históricos, agrega el informe.

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SPVs vs. Investment Funds: Which One to Choose?

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Freepik

Innovation and adaptation are crucial in finance and business to tackle evolving challenges and seize opportunities. One of the most interesting and effective concepts in this area is the Special Purpose Vehicle (SPV), also known as a special purpose entity. These legal entities, operating under a specific focus, have proven to be an agile asset management tool in various contexts.

Understanding the SPV concept

Special Purpose Vehicles (SPVs) are entities with specific purposes. An SPV is a legal entity with its own assets and liabilities, separate from its parent company. Parent companies legally separate the special purpose entity mainly to isolate financial risk and ensure it can fulfill its obligations even if the parent company goes bankrupt.

An SPV is also a key channel for securitizing asset-backed financial products. In addition to attracting equity and debt investors through securitization, as a separate legal entity, an SPV is also used to raise capital, transfer specific assets that are generally hard to transfer and mitigate concentrated risk.

How do Special Purpose Vehicles work?

The SPV itself acts as an affiliate of a parent corporation. The SPV becomes an indirect source of financing for the original corporation by attracting independent equity investors to help purchase debt obligations. This is most useful for high-credit-risk elements, such as high-risk mortgages.

Not all SPVs are structured the same way. In the United States, SPVs are often limited liability companies (LLCs). Once the LLC purchases the high-risk assets from its parent company, it typically pools the assets into tranches and sells them to meet the specific credit risk preferences of different types of investors.

Companies generally use SPVs for the following purposes:

Asset Securitization: In securitization, an SPV is created to acquire financial assets, such as mortgages, loans, or receivables, from a company or originator. These assets are bundled and issued as asset-backed securities (such as mortgage-backed bonds). The SPV separates the assets from the originating company, which may reduce risk for investors.

Project Financing: SPVs are used in infrastructure or development projects involving multiple parties. The SPV can acquire and operate the project, raising funds from investors and issuing securities to finance it. This limits the risk and liability of the involved parties.

Mergers and Acquisitions: In acquisition or merger transactions, an SPV can be used to isolate the assets or liabilities of the target company, which can benefit risk management and the transaction’s financial structure.

Risk Management: Companies can use SPVs to separate certain risky assets or activities from their balance sheet, helping to mitigate the impact of potential financial issues on the entire organization.

Real Estate and Property Development: SPVs can be used in real estate projects to acquire and develop properties. This can facilitate investment from multiple partners or investors and provide a separate legal structure for the project.

Asset Financing: Companies can use SPVs to finance the purchase of specific assets, such as equipment, planes, ships, or other high-value goods.

Tax Optimization: In some cases, SPVs can be used to leverage specific tax benefits or favorable tax structures in certain jurisdictions.

Special Purpose Vehicles are used to create specific financial structures that help separate risks, facilitate investment, manage assets, and meet specific business objectives. These legal entities offer flexibility and opportunities for investors and companies in various financial and business situations.

At FlexFunds, we take care of all the necessary steps to make customized and innovative SPVs accessible to fund managers. Thanks to these investment vehicles, asset managers and financial advisors can expand the range of products they offer to their clients.

SPV vs. Investment Funds: different approaches for different needs

A Special Purpose Vehicle (SPV) and an investment fund are financial concepts used to structure and manage investments efficiently, but they are employed in different contexts and for different purposes.

Special Purpose Vehicle (SPV):

A special purpose vehicle is a standalone company created to disaggregate and isolate risks in underlying assets and allocate them to investors. These vehicles, also called special purpose entities (SPEs), have their own obligations, assets, and liabilities outside the parent company.

Investment Funds:

Investment funds are collective investment vehicles where investors contribute their money to a common fund managed by financial professionals called fund managers. These funds pool money from various investors and are used to invest in various assets, such as stocks, bonds, real estate, or other financial instruments.

So, a Special Purpose Vehicle (SPV) is used to structure specific transactions and separate risks, while an investment fund is a collective vehicle that allows investors to pool resources to invest in a broader range of assets. Both concepts play an important role in the financial field, but their focus and purpose are different.

There’s no definitive answer as to which instrument is better, as their utility depends on each individual or entity’s specific investment goals and circumstances. Each has its own advantages and disadvantages, and the choice will depend on factors such as the investment purpose, the level of risk the client is willing to take, the investment duration, and personal preferences.

Some Advantages and Disadvantages of SPVs:

Advantages:

Special tax benefits: Some SPV assets are exempt from direct taxation if established in specific geographic locations.

Spread the risk among many investors: Assets held in an SPV are financed with debt and equity investments, spreading the risk of the assets among many investors, and limiting the risk for each investor.

Cost-efficient: It often requires a meager cost depending on where you created the SPV. In addition, little or no government authorization is needed to establish the entity.

Corporations can isolate risks from the parent company: Corporations benefit from isolating certain risks from the parent company. For example, if assets were to experience a substantial loss in value, it would not directly affect the parent company.

Disadvantages:

They can become complex: Some SPVs may have many layers of securitized assets. This complexity can make it challenging to monitor the level of risk involved.

Regulatory differences: Regulatory rules that apply to the parent do not necessarily apply to the assets held in the SPV, which may represent an indirect risk for the company and investors.

Does not entirely avoid reputational risk for the parent company: In cases where the performance of assets within the SPV is worse than expected.

Market-making ability: If the assets in the SPV do not perform well, it will be difficult for investors and the parent company to sell the assets back into the open market.

 Some Advantages and Disadvantages of Investment Funds:

Advantages:

Investment funds offer instant diversification by allowing investors to access a diversified asset portfolio managed by professionals.

They offer greater liquidity than some SPVs, as investors can buy or sell fund shares anytime.

Investment funds are more suitable for investors seeking a broader exposure to financial markets without actively managing their investments.

Disadvantages:

Investment funds can have management fees and associated expenses, which can reduce returns for investors.

Investment funds are designed for a wider group of investors and may not offer the same specific structure required in some complex transactions.

Ultimately, choosing between an SPV and an investment fund will depend on your needs and goals. With over a decade of experience, FlexFunds makes setting up an SPV straightforward for its clients, facilitating distribution and capital raising for their investment strategy, achieving this at half the cost and time of any other market alternative.

Fund Distribution Services Partners Has Reached an Agreement with Aegon Asset Management

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Photo courtesyLars Jensen, Managing Partner de FDS.

Fund Distribution Services (FDS), specializing in both institutional and  retail channels in US Offshore and Latin America has reached an agreement to represent Aegon Asset Management in the US Offshore market. 

“Our partnership with Aegon AM allows us to increase the breadth of solutions that we  offer our clients. Their history and experience provide additional strength and wisdom within their strategies as solid building blocks within portfolios,” said Lars Jensen, Managing  Partner FDS.

Aegon Asset Management is an active global investor with approximately 375 investment professionals managing and advising USD 321 billion as of June 30, 2023, for a global client base of pension plans, public funds, insurance companies, banks, wealth managers, family  offices and foundations. 

“We are excited to partner with FDS to increase our presence and assets in the US Offshore market. FDS offers an experienced team and strong relationships with platforms and  financial advisors in this channel,” added Mark Johnson Managing Director, Aegon Asset  Management.

Investors Trust Proudly Celebrates the Grand Opening of Its New Office in Kuala Lumpur

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Photo courtesy

Investors Trust celebrated the grand opening and ribbon cutting ceremony of its new office in Kuala Lumpur.

On Thursday, August 24, from 19:00 to 22:00, Investors Trust hosted a grand opening party that offered a delightful experience for all in attendance. This was a momentous event as it marked the grand opening of their new office in Kuala Lumpur.

This celebration gave guests the unique opportunity to explore the ins and outs of the new office while enjoying a captivating atmosphere.

The Investors Trust management team was also present, sharing interesting conversations and fostering contacts with the guests. The event was attended by more than 140 people, including distinguished guests and representatives of the local media, who came together to celebrate this remarkable milestone in Investors Trust’s trajectory.

This new office is part of the restructuring of Investors Trust’s operations in the region and  will serve as the new sales hub in Asia. The relocation reflects the company’s commitment and efforts to deliver top-rated service in the region, especially Malaysia, where it has had a  growing presence for over 10 years.

The opening of this office is a strategic decision that  represents the company’s preference to concentrate their sales and operations functions in  one location where Investors Trust is fully licensed in order to provide optimal service and expand its reach across the region. 

“The relocation of our Asia hub continues our longstanding commitment to the region and  further expands our presence in Malaysia where ITA Asia Ltd is registered as a licensed  Insurer by the Labuan Financial Services Authority,” David Knights, Head of Distribution Asia at Investors Trust. 

The office is in the new state-of-the-art Exchange 106 building which is  located in the new business district of Tun Razak Exchange. The relocation will provide an  attractive and modern working environment for their Asia sales team along with an impressive  location for Investors Trust’s business partners from around the world. 

Robeco releases the second «Big Book of SI»

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Pixabay CC0 Public Domain

Robeco has published the second edition of its comprehensive manual, the Big Book of Sustainable Investing (SI). This publication provides insights into how investors can approach SI, and details Robeco’s sustainable practices. It offers solutions to navigate complex sustainability topics, including the net-zero transition and the UN Sustainable Development Goals (SDGs).

The first Big Book of SI was published five years ago and became one of Robeco’s most downloaded publications, establishing its significance. Over the last few years, the world has experienced major health, geopolitical, and climate-related events. These events have illustrated how quickly risks can materialize and spread with serious impacts on supply chains and economies. “We have witnessed the interconnectedness of environmental and social issues and this has created greater interest, and a more intense focus on sustainability in investments”, the. firm said. 

Recent studies reveal that humanity is consuming natural resources 1.75 times faster than the planet’s ecosystems can regenerate. “We cannot change the past, however, there is an opportunity to chart a different course to avoid catastrophic outcomes in the future. The Big Book of SI explores three global challenges – climate change, biodiversity loss, and human rights – to illustrate the need for integrating sustainability into investment decisions. Sustainable Investing contributes to mitigating risks, generating investment returns, and driving positive change through the alignment of portfolios with real-world impact”, Robeco added.

Worldwide, approximately USD 35 trillion is invested sustainably across five major markets. SI growth is expected to continue because it is seen as being financially relevant and with a growing client base and increasing societal expectations, SI investing continues to gather regulatory support. 

Mark van der Kroft, Chief Investment Officer Robeco: “Sustainability has been integral to Robeco’s investment philosophy for decades. We firmly believe in safeguarding economic, environmental, and social assets to ensure a healthy planet where people can thrive for generations to come. As SI pioneers and investment engineers, we strive to lead the way in uncovering new opportunities for investors, and promoting a sustainable future for both business and society. This commitment as well as the support to our clients wherever they are on their sustainability journey, is reflected in our second Big Book of SI.”  

The 135-page book, filled with research-driven insights, is now available on Robeco’s website.