The Japanese Government Pension Investment Fund (GPIF) is aggressively redirecting and increasing its investments in ESG-Stocks while stock markets all around the world are tumbling
Well-said. All about finding the right KPI! For ESG - we're still early on in defining & aligning on success, especially as 'good' goes far beyond a company's financials and the short-term ROI horizon we tend to have a bias towards.
I am not an expert, however doing a rebalance of their portfolio at this moment when the ESG stocks are the biggest losers will mean they are almost at their bottom and if/when a bull run happens, they will earn the most, no?
That could happen, but more often than not, stocks do not recover to their all time highs due to them being unjustifiably overvalued during bull-runs. However, the Japanese pension fund is a massive institution and any portfolio change will take years to fully implement. So hopefully by the time they fully implemented their ESG-standars, they are more defined and functional.
Well-said. All about finding the right KPI! For ESG - we're still early on in defining & aligning on success, especially as 'good' goes far beyond a company's financials and the short-term ROI horizon we tend to have a bias towards.
I am not an expert, however doing a rebalance of their portfolio at this moment when the ESG stocks are the biggest losers will mean they are almost at their bottom and if/when a bull run happens, they will earn the most, no?
That could happen, but more often than not, stocks do not recover to their all time highs due to them being unjustifiably overvalued during bull-runs. However, the Japanese pension fund is a massive institution and any portfolio change will take years to fully implement. So hopefully by the time they fully implemented their ESG-standars, they are more defined and functional.