Navigating Non-Traditional Risks & Opportunities For Sophisticated Investors

The global reach, scale and time horizon of most publicly-owned investors compels their consideration of non-traditional opportunities and risks. To compete for sources of sustainable capital growth, these investors are increasingly seeking to address the economic and social context of an extended low/negative interest rate environment, in part by pursuing better governance, disclosure, and transparency. In addition to addressing low expected returns currently challenging all investors, publicly-owned investors must contend with challenges that are as varied as their objectives. Whether acting as a global, local, pension, or niche market investor, changes to geopolitics, demographics, technological advancement, immigration, the energy landscape, climate change and the transition to a low carbon economy are affecting investors differentially depending upon their investment policy framework.

Long-term, diversified and publicly-owned investors are uniquely positioned to find emerging opportunities within these challenges, leveraging their sophistication, extended time horizon and collective ability to affect the cost of capital, to shape economic development across local, global and niche markets.