Manulife Investment Management takes a Multipronged Look at the Role of Sustainable Investing and ESG Analysis
Manulife Investment Management has released its semi-annual Global Intelligence report, a firmwide outlook highlighting notable perspectives from its investment teams. Key themes in the report include the rising role of environmental, social, and governance (ESG) factors, including biodiversity and stewardship in macroeconomic valuation and the creation of value across the asset class spectrum.
The investment teams also describe the case for China bonds as a stand-alone asset class, as well as the role of real assets in the deepening search for yield and income security in retirement, the firm said in a press release.
“One enduring outcome of the past year is the importance of sustainability,” said Paul R. Lorentz, president and CEO of Manulife Investment Management. “Against this backdrop, we devote much of the latest edition of Global Intelligence to examining those sustainability scenarios and their impact on investments and investment decisions.”
Christopher P. Conkey, CFA, global head of public markets at Manulife Investment Management, said, “Sustainable investing is no longer an option. It is a necessity—for us, for the global economy, and for our investors. We've made significant progress in the past year and aim to consider sustainability in everything we do as a business, across both traditional and alternative asset classes.”
Stephen J. Blewitt, global head of private markets at Manulife Investment Management, added, “Sustainable investing is essential for illiquid private assets that we manage over a long time horizon. We take a critical look at biodiversity and the tools we have at our disposal. Further, findings from our private equity team reveal how better stewardship can unlock value in private equity.”
Notable asset class themes, shifts, and guidance within Global Intelligence include:
- Applying an ESG lens to macroeconomic analysis—a starting place—Managing Director, Global Chief Economist, and Global Head of Macroeconomic Strategy Frances Donald takes a closer look at how climate change factors and targets could alter an economy's growth trajectory, the implications of government-led green initiatives on fiscal policy and productivity, and the impact of a growing wealth divide on monetary policy and central bank action.
- Sustainable private equity and the new drivers of value creation—ESG Director of Private Markets Maria Clara Rendon Echeverri and Global Head of Private Equity Vipon Ghai highlight the expectations of private equity investors for ESG practices by the general partners (GPs) they invest with and how GPs are responding by implementing new and creative investment ideas.
- Valuing biodiversity: the tools at our disposal —Chief Sustainability Officer of Private Markets Brian J. Kernohan and Global Head of ESG Integration and Research of Public Markets Peter Mennie explore the inclusion of biodiversity implications into investment portfolios and take a closer look at how green bonds have fundamentally changed how people think about the debt market.
- A closer look at the growing appeal of China bonds for global investors—Senior Portfolio Manager of Fixed Income Paula Chan discusses the case for China bonds as a strategic long-term allocation while showing the potential benefits of China bonds as a replacement for emerging-market debt and brings forward the merits for China bonds as a stand-alone asset class.
- Emerging markets and the case for sustainable investing—Senior Portfolio Managers Kathryn Langridge and Philip Ehrmann and Asia Head of ESG Eric Nietsch, CFA, review why emerging markets offer some of the world's most consequential investment opportunities for investors focused on mitigating global climate and social risks.
- Building better retirement plans with liability-driven investing—Global Head of Liability-Driven Investments, Financial Engineering, and Quantitative Research of the Multi-Asset Solutions Team Serge Lapierre and Professor of Asset Management and Associate Dean for Corporate Engagement at Cass Business School Andrew Clare dissect how the liability-driven investing approach to the management of retirement plan assets can help reduce the risks that a typical plan faces.
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