Capital Allocators – Inside the Institutional Investment Industry James Aitken – Tour Around the World from a Small Island (Capital Allocators, EP.122)
Feb 10, 2020
James Aitken, Founder of Aitken Advisors, is a one-man force in macroeconomic research based in Wimbledon. In this engaging discussion, he dives deep into the ESG movement, spotlighting the shift towards renewable investments and the pressure from younger activists. Aitken unpacks the investment landscape post-Brexit, highlighting opportunities in undervalued sterling assets. He also shares insights on China's shadow banking challenges and the intricacies of the US financial system post-2008, offering a unique perspective for institutional investors.
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ESG Tsunami Impact
- The ESG tsunami is accelerating due to virtue signaling and will impact portfolios.
- Fund flows are shifting from non-renewables to renewables, impacting business, economics, politics, and investments.
Lack of ESG Benchmarks
- While the ESG trend is accelerating, there's a lack of standardized benchmarks like those for credit investing.
- This lack of clarity creates uncertainty, but won't stop the ESG transition.
Portfolio Adjustments for ESG
- Scrub your portfolio and analyze it through the lens of ESG labels to anticipate divestment risks.
- Increase exposure to renewables and consider companies actively working on ESG compliance.