Sustainable Investing for Measurable Impact and Profit

Course number: FIN6300
Faculty: R. Paul Herman
What students learn in this course:
  • How to build an investment policy and diversified sustainable portfolio to solve a human, social and/or environmental challenge and provide attractive financial returns
  • How to evaluate and model securities (stocks, bonds, funds, ventures, etc.) to best fit a given impact portfolio
  • How to measure the impact of outcomes and processes and build a management framework to encourage expected results
  • How to compare and contrast the impact and financial goals, portfolio styles, and investment processes of investor types including individuals, family offices, foundations, endowments, pensions, retirement plans, and institutions.
About this course:

Investing for measurable impact and profit remains a contentious aspiration for most investors today.  Tremendous evidence that shows investors and society benefit from solving human, social, and environmental issues in for-profit portfolios. Yet portfolios that are extractive of people, planet, and trust remain the norms from biases and myths of recent decades – thus, new MBAs must learn how to craft sustainable, impactful portfolios to benefit society and finances.  This course focuses on the fundamentals of value creation in a diversified portfolio across all asset classes, and an investment process to achieve net positive impact while pursuing attractive risk-adjusted returns. Students will learn how to craft investment policy statements (IPSs), diversify for impact themes (environmental and social) as well as risk-return expectations, evaluate securities (stocks, bonds, funds, private issuances), construct portfolios, and measure the outcomes on stakeholders and society.  The course will also cover back-testing and simulations, impact reporting, and engagement with advisors and fiduciaries of family offices, foundations, institutional investors, and retirement plans.

Units: 4
Pre-requisites: SUST6240 Financial Systems
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