The Importance of Goals-based (and Values-based) Liability Indices: Applied to Impact and Green Investing
By Arun Muralidhar, Roland van den Brink, Patrick Groenendijk & Ronald van der Wouden Investors are creating portfolios that align with their specific goals and values. We posit that goals and values should be translated into Goals-based Liability Indices (“GLIdes”). GLIdes can be used to achieve goals, benchmark the asset portfolio, and improve governance.They allow Boards to measure progress to their overall (or multiple) goal(s) and also the relative risks of their investment policies and implementation. We first introduce the...