In this video, he states that investors should be open to the opportunities that solution providers can offer. While this could involve taking off-benchmark positions and running a sustainable thematic portfolio with a higher tracking error, it would be offset by a higher risk/reward.
To avoid any possible ambiguity, please note that any ESG/sustainability outcomes evoked by Ulrik in this video do not correspond to the definition of ‘impact’/’impact investing’ as those investments fulfilling the dual objectives of:
- Seeking a non-financial (real world) impact
- The impact being measured and monitored.
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. The views expressed in this podcast do not in any way constitute investment advice.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.