Selected Readings
September 2011 - A New Foundation for Portfolio Management - RSF Social Finance and Portfolio 21
A New Foundation for Portfolio Management is a paper that proposes new principles for creating an investment portfolio. Authored by Leslie Christian, of Portfolio 21 Investments with the support of Don Shaffer, President & CEO of RSF Social Finance, this paper challenges current assumptions about risk, growth and utility and proposes new principles to bring portfolio theory into the 21st century.
The white paper provides a set of new foundational elements to build upon current investment including:
- Integrated Risk – a scientific view of risk that incorporates ecological limits and uncertainty, both usually ignored in investing.
- Selective Growth – growth can occur even if average economic growth is zero or negative, but it will be unique to particular sectors and companies rather than a function of rising per capita material consumption.
- Multifaceted Utility Function – investors need to have clarity with respect to the unique purpose and goals of each asset beyond solely financial.
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