ESG Equities Investing Simulation
Participants take on the role of a Fund Management team running a long only equity fund over a simulated four-year period. Through the simulation, participants gain a deeper appreciation of ESG issues today, how they impact different industries, risks of and opportunities for generating returns whilst maintaining strong ESG credentials. Our ESG simulation offers an interactive and experiential learning solution that’s perfect for early careers, new and lateral hires and CPD.
An Engaging Simulation centred around ESG
In our ESG Equities Investing Simulation, teams are given an ESG scorecard for a number of companies describing the major ESG themes impacting them, and the risks (and opportunities!) these themes present to the financial performance of the companies. Using the ESG rating information and business and markets news from an online news portal, teams make their investment decisions and create their portfolio. Their portfolio will have an ESG score, which is a function of the ESG scores and weights of the companies in their portfolio.
Performance Assessed On Fund Performance And ESG Credentials
In the ESG simulation, portfolio analytics allow teams to assess performance on an absolute, relative and risk adjusted basis, and fund performance is measured against a composite index. End of year AUM is based on fund performance during the year and winning new ESG mandates. The better their portfolio ESG score, the more new business they will win for the following year. Teams are then given updated company specific news, and news on a macro level that will impact the ESG ratings of all the companies. They get the opportunity to rebalance their portfolios to generate positive alpha whilst maintaining a strong ESG rating for their respective portfolios.
A Flexible Simulation For Virtual And In-Person Events
Designed as an online digital simulation, our ESG Simulation offers a flexible learning solution that can be delivered virtually or in-person.
You Choose How It Is Deployed In Your Organisation…
Option 1: ESG Simulation Only (2½ hours)
If you are looking to complement an existing programme already in place, then you can utilise our ESG simulation on a standalone, ‘simulation only’ basis. Our simulation will enable your people to gain a deeper appreciation of ESG issues today, how they impact different industries, and the challenge faced by investment managers who need to balance the challenge of generating Alpha whilst maintaining strong ESG credentials.
Option 2: Introduction to Asset Management With ESG Simulation (½-day)
An exciting and experiential approach to introduction to asset management centred around our unique ESG simulation. This half-day workshop will help develop a practical understanding of where asset management sits within the financial services industry exploring: investors and borrowers; primary and secondary markets; key asset classes – equities, fixed income and derivatives; client objectives and constraints – considering risk vs. return, liquidity, governance and investment style; and how fund performance is analysed.
Option 3: ESG Simulation-based Workshop (½-day)
As detailed in option 1, but also includes facilitator-led sessions that explore: the size and scope of ESG investing in relation to geography, strategy, investor type and asset class; the market drivers of ESG; and the challenges of ESG integration for the major stakeholders within the investment industry.
Option 4: ESG simulation-based workshop - deeper dive (1-day)
As per option 3, but we also include further facilitator-led sessions designed to enable participants to: discuss with confidence the most impactful environmental, social and governance themes driving investment management decisions; and evaluate the major ESG analysis and integration techniques used by investment managers.