Designing a Multi-Asset Fund for Green Growth
#3. Understanding the risk and return profile of your fund (based on the University of Michigan Endowment)
The fund we're designing for our client needs to generate financial returns, while having environmental and social impact (ESG). Without financial returns, we cannot reinvest in the fund, nor dedicate a portion of the returns to invest in the economy or important conservation projects. Let's explore where we get financial returns from :
1. Does the Endowment/Asset Managers have assets (holdings) that generate cash flows (from sales)? For example, project finance, insurance, or other. Provide a detailed example (asset manager, project, revenue stream).
2. Does the Endowment have assets that generate value from trading? For example, bonds, securities, commodities. Provide detailed example (asset manager, traded asset, returns).
(Note that you should make reference using footnotes. No opinions. Only reserch or referenced information. Write in full sentences. Figures or tables can be added in the appendix.)