Thought Leadership

Green investing has been a socially responsible investment strategy to give institutional investors and their beneficiaries some comfort knowing they were supporting the environment. As environmental concerns impact large multinational companies, policymakers, and individuals worldwide, institutional investors have begun to recognize green investing as a financially attractive sector. The green opportunity set is broad; it includes renewable energy, energy storage, energy efficiency, environmental services, and environmental resources. While growth drivers support exposure to the green sector, there are many inherent risks to green investing, including market, execution, technology, financing, commodity pricing, and regulatory changes. This report should serve as a primer on green investment merits and considerations. We conclude that investors should consider some of the more compelling green investment strategies, but avoid strategies that do not offer an attractive risk-adjusted return.

Stable value is offered by 60% of all DC plans, including 75% of DC plans with 1,000 or more participants, in the United States and participants have allocated over 19% of their totals assets to this fund vehicle1. Without question, participants appreciate stable value’s key features including consistent, steady returns and principal preservation.

EnnisKnupp’s capital markets modeling assumptions play a critical role in the advice rendered to clients, given the impact of the asset allocation decision on the success of the overall investment program. Continued changes in the market environment have resulted in adjustments to our projections, which are presented here in our most recent biannual assumptions update.