Level 9 Investment decision in the context fo the investment process chain Flashcards
What are the four steps in the investment process chain?
What are the SEVEN steps in the investment process chain?
Crafting an investment strategy
Name the Sub bullets of these
Context-
Vision and mission-
Invesment priciples-
Investment strategy selection-
implementation
The investment policy is instrumental to achieving and organizations vision and mission, and need to be aligned with investment strategy.
- What should an investment policy do?
- Investment strategy for the highest order guidance for you policy and therefore?
1
Outline your investment objectives
Give specific guidance to investment processes
Give specific guidance on your standards for measuring success
2 .the construction of your investment portfolios
The Role of ESG. Example of macro research. flip to see slide
The integration of ESG issues in active strategies analyses the?
- Exposure to ESG global trends
- Exposure to material issues trough the sector allocation (typical ESG issues for the different sectors) Implicit sector comparison
- Expusre to ESG material issues trough the country allocation (typical ESG issues for countries)
ESG Global trends. What are teh questions to be answered
Flip to see
Wich are the three ESG global trends?
Digital Transition
Energy and ecological transition
Demographic shifts
Which are the ESG trends are affecting the financials of sectors & countries?
Digital Transition
Energy and egological transition
Demographic shifts
Climate related risks typology, Technology risks
What are the risks to technology vs potential financial impacts
Climate related risks typology, Physical risks
Climate related opportunities typology
What are the opportunities vs potential financial impacts
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Climate related opportunities typology
What are the opportunities vs potential financial impacts
Card 1/2
What is the net financial impact in climate change for the Utilities sector
What is the net financial impact in climate change for the Oil and gas sector?
What 4 variables have climate change a financial impact on?
The assesment process
How fo you identify winners and looser in every sector.
What are the limitation of passive ESG strategies?
Describe the portfolio construction & security selections process (fundamental strategies)
ESG in security selection process (strategies)
Name three steps
Eliminate targets with the weakest sustainablity performance based on scores.
Indentify the most promising companies from both a traditional valuation adn sustanability performance.
Integrate sustanability information into financial models and determine teh sustainability contribution to the companies fair value
Name differences between hwo an equity investor adn a bond investor select their securities
What are the questions that should be answered in the security selection process before the investment decision?
What are the investment process in quant stretegies.
name the three steps?
Name the 3 methods of a ESG passive strategy
