Absolute Return Overlays: The Power of Diversification on Returns
Portable alpha overlays can potentially provide a flexible and scalable means for asset owners to enhance the expected returns of their allocations.
Global efforts to reduce greenhouse gas emissions will require enormous spending over decades, transforming industries and supply chains worldwide. While many traditional decarbonisation strategies focus on renewable energy and electric vehicles, the Jennison Associates Carbon Solutions investment team believes this narrow approach underestimates a broader universe of opportunities.
The team shares its distinct investment philosophy, including the urgency of reducing emissions, the pivotal role that traditional oil and gas companies will play, and why they believe it's critical for investors to consider companies that help avoid emissions in the first place.
Read on to uncover how decarbonisation is transforming industries, creating a broad and growing opportunity set that the team believes may be underappreciated by many investors.
Portable alpha overlays can potentially provide a flexible and scalable means for asset owners to enhance the expected returns of their allocations.
Capturing companies’ relationships and interconnections across industries during the investment process can help identify new opportunities and limit risks.
PGIM Quantitative Solutions examines cross-asset relationships that may help make better asset allocation decisions.
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