Radiant News
Through our quarterly newsletters we hope to keep you apprised of key developments at our firm, share a timely thought on an ESG or impact-related theme, and highlight inspirations that remind us that good things are going on in the world.
We are also regularly asked for our thoughts on the intersection between ESG principles and investment practice, and the importance of developing a sustainable culture. To share perspective is to fuel debate and promote awareness, as we hope our features “In the News” will do.
2024 for Radiant is off to an extremely busy start. We are very encouraged by the discussions we are having around the globe, which suggest a strong appreciation for our differentiated approach and signs of broadening interest in active equities and in our capabilities in particular. Radiant is closing in on three years in business and we can’t believe how quickly the time has passed. It has been extremely rewarding to engage directly with clients, consultants and prospective investors, and participate in an investment landscape that is swiftly evolving.
Radiant has officially been in business two and a half years and we are delighted to have completed our second full year of performance for our flagship US Smaller Companies strategy. At the end of 2023, we also marked eighteen months as sub-advisor to the HSBC Radiant US Smaller Companies Fund HSBC Radiant US Smaller Companies Fund—RESCX, with the Fund now in the top decile in performance relative to its Morningstar Category, awarded 4 stars and 5 globes.
At Radiant, we’ve been quoted many times as saying, ‘without the S, there will be no E’. By this we mean that a true transformation of our energy system, transportation, agriculture, and infrastructure to one that is ‘cleaner and greener’ simply won’t happen if we gloss over the impact to human lives that will result from massive economic changes.
Over time, as with most acronyms or catchy labels (like ‘Smart Beta’), ESG has come to mean a variety of things to a wide range of investors. From values-driven exclusions, to tilting indices using ESG scores from mainstream providers, to activist-driven strategies...
As we turned the corner into 2023, both the concepts embedded in ESG and the acronym itself became squarely part of the popular consciousness in the United States...
As investors who have been using ESG and impact information to analyze investments for some time, 2022 stands out as a year in which ESG moved beyond becoming mainstream to becoming reviled by some, and more deeply embraced by others.
IN THE NEWS
- Equity Manager Radiant Sees Bright Future For Strategies – Emerging Manager Monthly
- New Investment Manager Radiant Has ESG In Its DNA - Emerging Manager Monthly
- Radiant : ‘The problem with conflating ESG and impact investing’ - Sustainable Investment
- Radiant : 'A Paradigm Shift in Investing' - CFA Enterprising Investor
- Radiant completes investment platform build-out with ESG-focused small cap strategy launch - Press Release
- Radiant : 'Is it time for a rebrand and culture overhaul in asset management?' - DiversityQ
- Radiant Global Investors aims to advance ESG - Markets Media
- Radiant leans on diversity in backgrounds as competitive advantage - Citywire Selector
- Radiant Global Investors expands with three key hires - Press Release
- HSBC Asset Management finances the launch of RadiantESG Global Investors - Press Release
- Radiant 'Using alternative data to improve ESG insights' - OPTO Column
- Female-led fund bakes gender diversity into stock picking - Financy
- HSBC AM takes stake in women-owned investment firm - FS Sustainability
- HSBC AM finances launch of female-owned ESG, DEI manager - Fund Intelligence
- HSBC fund arm backs former Rosenberg Equities CEO in ESG start-up - Reuters
- HSBC Asset Management finances launch of RadiantESG Global Investors, a women-owned investment firm - Press Release
- Radiant : 'Biodiversity is the next 'climate' for investors' - Advisorpedia
- Radiant : 'Why corporations' disclosure of race data is an economic and moral imperative' - OPTO Column
- Radiant : 'Biodiversity: the next big focus for investors?' - OPTO News
- Radiant : 'We must approach public equities with an impact mindset' - FS Sustainability
- Radiant on the investment case for inclusivity and diversity - OPTO News
- Radiant co-founders on how leadership and asset management is evolving - Women in Asset Management
- HSBC AM finances launch of female-owned ESG, DEI Manager - Fund Intelligence
- Radiant co-founders share tangible actions leaders can take to improve company culture post-pandemic - ESG Clarity
- Heidi Ridley 'ESG is probably the single most important change to asset management' - OPTO Magazine
- Radiant co-founders on why efforts to promote diversity have met with only moderate success - DiversityQ
- Co-founders of Radiant discuss the power of culture: steps for diversity & inclusion success - ESG Clarity
- Former Rosenberg Equities CEO launches new ESG firm - ESG Clarity
- Ex-Rosenberg Equities CEO to launch ESG-focused asset manager - Fund Intelligence
- Ex-Rosenberg Equities executives launch Radiant - FS Sustainability
ESG INSIGHTS
“The idea that ESG information is economic and potentially material is hardly controversial now. In itself this represents a profound philosophical leap for equity market investment practitioners.”
“Social challenges give rise to myriad risks affecting our investments and our economy more generally. These threats aren’t on the distant horizon. They are with us now.”
“We believe that a sole focus on ESG may actually be a distraction from the very necessary impact goals that will ultimately bring about the profound change needed to improve our collective path of travel.”
“Capital markets participants must transition from reacting to change to modeling the way; and in doing so, proactively playing a lead role in the development of enduring businesses that thrive by meeting the needs of all stakeholders and driving impactful outcomes that serve society at large.”
“ESG Scores and summary views of companies exist for a reason and are a necessary first step but it’s time to move on if we are to elicit real change.”
“We are excited about the various efforts underway to use blockchain to validate supply chain claims. With the origins and movements of goods recorded immutably in a distributed ledger, we could have far greater confidence in programmes aimed at mitigating supply chain risk.”
“ESG is probably the single most important change to asset management.”
“Every industry will be impacted by climate change in some way. This is why it’s more critical than ever that investors think through its impacts and understand where future demand for products will reside.”
“…we see climate change—and its ancillary impact on production, on human capital, on even big things like migration or economic participation—as being much more important going forward than it has been in the past.”
“Our argument is economic, and is as focused on upside as downside… some ESG metrics point us toward opportunities for jobs and GDP growth while also helping mitigate climate change.”
ESG “fits well with our long-term philosophy, even in our smart beta strategies, we are not looking for short term factors."
“We believe that ESG information is economic in nature; it helps orient us toward companies that are using their resources well – human, physical, and technological – and away from those who are not in step with long-horizon trends.”
“The combination of factor-led investing and SDG alignment are the keys to building strategies that can weather market storms while still maintaining positions in companies that will benefit from long-run market forces.”
“…the divestment-led approach targeting point-in-time, absolute carbon intensities ignores the potential winners of a future low-carbon economy. It treats all polluters the same instead of seeking out those that are evolving.”
“Why should investors park their values at the door when they go into public equities? We should help them employ the strength of the broad public equity market.”
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DIVERSITY INSIGHTS
"The companies that we invest in that have more diversity have better economic outcomes... so why would we think that in asset management we would be different or somehow immune to the benefits of diversity?"
“The concepts of diversity and inclusion are about so much more than pure business considerations. They build resilience into the fabric of our economy and lead to better outcomes for people, society, and the planet.”
“Groupthink is the most value-destroying challenge in our business.”
“By focusing on other dimensions of diversity like race...sexual identity...class, the fear is that we're going to take our foot off the accelerator on gender, which is then going to stall progress. I don't believe this is true, and in fact, our economic arguments are only strengthened when we maintain allegiance to diversity itself, as opposed to gender more narrowly.”
“Capital markets participants must transition from reacting to change to modelling the way; and in doing so, proactively playing a lead role in the development of enduring businesses that thrive by meeting the needs of all stakeholders and driving impactful outcomes that serve society at large.”
“To be successful in one of the most competitive industries in the world where results are intensely scrutinized, we need to leverage the competitive advantage of diversity in backgrounds and perspectives and the benefits of an inclusive culture built on core principles.”
“While disclosure on the part of companies is not a substitute for action, it will allow for a baseline understanding of where the corporate world stands today with respect to racial diversity - an important step in achieving both economic and societal goals.”
“We argue that culture — specifically one which promotes an inclusive environment — can be a bridge between diversity and inclusion aspirations and tangible results.”
“Leadership is facing a paradigm shift; The leaders of tomorrow will need to bring new skills and a new mindset.”
“A creative and flexible approach to DEI, anchored on a culture of inclusion, will allow firms to carry forward programmes that are working well, while also welcoming new initiatives that are specifically targeted to this period of uncertainty.”
“If we're to work to improve organisational diversity, we need to start with data.”
“A truly inclusive culture actively rejects 'group think' and is not only comfortable with dissent but requires it.”
“[My background] provided me with a good perspective on the importance of diversity, not just male and female but different cultures and people, their lives and viewpoints.”
“We can confidently say that, historically, higher diversity ‘today’ has translated into higher return on equity ‘tomorrow’.”
“I don’t think we should accept companies doing the bare minimum, in other words appointing a threshold number of women onto their boards and in doing so not really addressing the core problem. The problem is an economic one: our research shows groupthink leads to stagnancy and worse economic outcomes…”
“We see the benefits on a daily basis of employing colleagues from different backgrounds. [This] percolates into problem-solving processes which have proved very beneficial for clients.”
“…diversity is not just a "nice to have" but instead a "must have" for firms facing the most intense market competition.”
“Look at the culture of the company and the programmes it promotes. Is it committed to diversity, does it help parents re-enter the workplace and offer good work-life balance and flexibility? Women will respond to welcome gestures of support from employers by working harder. It’s amazing how these things work in terms of retention.”
"Organisational diversity and the policies and practices that make it manifest are associated with greater employee retention, greater productivity, ability to attract new talent, and improved innovation and problem solving – through a reduction in ‘group think’."
"Importantly, both are stories of people with immense passion for something, who embrace challenges with determination and commitment and achieve success with authenticity and humility."
“By focusing on other dimensions of diversity like race...sexual identity...class, the fear is that we're going to take our foot off the accelerator on gender, which is then going to stall progress. I don't believe this is true, and in fact, our economic arguments are only strengthened when we maintain allegiance to diversity itself, as opposed to gender more narrowly.”
“While disclosure on the part of companies is not a substitute for action, it will allow for a baseline understanding of where the corporate world stands today with respect to racial diversity - an important step in achieving both economic and societal goals.”
“We argue that culture — specifically one which promotes an inclusive environment — can be a bridge between diversity and inclusion aspirations and tangible results.”
“Leadership is facing a paradigm shift; The leaders of tomorrow will need to bring new skills and a new mindset.”
“A creative and flexible approach to DEI, anchored on a culture of inclusion, will allow firms to carry forward programmes that are working well, while also welcoming new initiatives that are specifically targeted to this period of uncertainty.”
“[My background] provided me with a good perspective on the importance of diversity, not just male and female but different cultures and people, their lives and viewpoints.”
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