Institutional shift, guns and fiduciary duty, smart subsidies, daily dealflow

  • Risk aversion... has led pension and sovereign wealth funds to a growing interest in impact themes around climate, resources and economic inclusion (Podcast).
  • Fiduciary duty... That gun companies are part of widely used stock indexes does not mean that passive investors need remain passive.
  • Green bonds... Baltimore to raise $6 million to cut polluting runoff into the Chesapeake Bay. Atlanta is raising $12.9 million to minimize flooding and improve drainage.
  • Smart subsidies... The ‘S’ word is still sensitive for many investors.

Institutional investors come for the risk reduction, stay for the impact (podcast)

  • Pension and sovereign funds... are showing strong and growing interest in impact themes of climate risk, resources risk and social risk.
  • The play... They're "looking for strategies that take advantage of sustainability-oriented themes or threats, and allow them to play that strategy.” –– Dave Chen, the head of Equilibrium Capital

What’s the fiduciary duty of index investors when it comes to gun companies?

  • Index funds should focus... on how gun sales gun affect the systems on which all of the companies in the index depend, says B-Lab's legal head Rick Alexander.
  • A fiduciary... must think systemically in order to serve the interests of investors.
  • This means... an investment steward can forgo a gain at an individual company to preserve systemic value, and the value of an entire portfolio.

SoftBank backs Saudi Arabia’s ambitious solar effort

  • Big bucks… The initiative will cost $200 billion including the panels, battery storage, and a solar panel manufacturing facility.
  • Japan’s SoftBank... is backing the first, $5 billion, 7.2-gigawatt phase of the project.
  • Green jobs… Job creation also plays a role in Saudi Arabia’s solar, and broader Vision 2030, plans.