Showing 1 - 10 of 339 results for 'ESG Investing'

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Quick Clips: What’s the Worst That Should Happen?

While expected returns on traditional assets are trending lower than their historical averages, the same is not true for the associated risks. Given this, setting investors’ expectations may be more important today than ever.

Working Paper

Sustainable Systematic Credit

Interest in sustainable investing is now expanding into fixed income. This paper assesses how measures of sustainability/ESG might be relevant for corporate bonds and analyzes how ESG measures can be incorporated into an investment process to achieve the joint object of maximizing risk-adjusted returns and a sustainability target.

Perspective

Shorting Your Way to a Greener Tomorrow

It would be an understatement to say there is confusion in the industry about the use of shorting in an ESG context. When it comes to calculating a portfolio’s ESG score, we have heard arguments ranging from "ignore the shorts” to “net them against longs,” and, my favorite as it’s creatively insane, “pretend the shorts are actually longs.” This note explains why it is critical that shorts be properly accounted for, so that investors can use shorting to reduce carbon exposure, to get to net zero or to achieve other ESG goals.

Tax Matters

The Value of Integrating Income and Estate Planning

In this post, we discuss challenges of wealth preservation and growth faced by high net worth families. While a family that invests with income tax and estate tax efficiency in mind is more likely to achieve its financial legacy goals, the numerical advantages of tax efficiency are quite striking. In addition, we show that there is a significant value in integrating income tax efficiency and estate tax planning.

Tax Matters

Does Tax Efficiency Just Delay the Tax Burden?

We often hear the sentiment that tax-efficient investing just delays the inevitable: Eventually, a day will come when the tax-efficient investor will have to true up on years of deferred taxes. And, with the proposed Biden Tax Plan sending many investors scrambling to plan for higher taxes, we feel that now is as good a time as any to put this long-standing myth to bed.

AQR Announces Winners of 2021 Insight Award

This year, first prize was awarded to “In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis” by authors Xavier Gabaix of Harvard University and Ralph Koijen of the University of Chicago Booth School of Business. The paper was awarded a $50,000 prize.

In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis

Sustainable Investing in Equilibrium

Working Paper

The Tax Benefits of Direct Indexing

An investor holding a direct indexing portfolio can obtain tax benefits by harvesting losses on individual stock positions. We show that investors with allocations to hedge funds and derivatives are the most likely category of investors to have systematic short-term capital gains in their portfolios and, therefore, benefit the most from losses harvested by direct-indexing strategies. We show how tax benefits are affected by equalizing the tax rate applicable to long-term and short-term capital gains.

Tax Matters

“The Tax Benefits of Separating Alpha from Beta” Wins the 2020 Graham and Dodd Top Paper Award

In this paper, we tackle a different practical question: In a world dominated by tax-agnostic managers, how can investors design their tax-agnostic strategy allocations to improve the tax efficiency of their overall investment portfolios?