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What’s next – 2023 and beyond

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Increased scrutiny of ESG and impact strategies by both regulatory bodies and the public at large continued throughout 2022. The scrutiny has been warranted in many cases, with regulators finding that several advisors were guilty of misstating or omitting information about ESG investment considerations for certain strategies. Tackling the problem of greenwashing and the like should be a high priority in our opinion and we welcome improved clarity around standards and disclosures.

On the flip side, however, there has been deep politicization of responsible investing strategies with many factions attacking the merits of any and all strategies, regardless of facts. This has created a fair amount of polarization in the investment community and unfortunately, we expect that to continue throughout 2023. Stronger regulations around investment strategy naming conventions as well as clearly defined expectations for ESG and Impact reporting should help alleviate some of this, but it will take time for those rules to be implemented and adopted, and for the implications of these changes to be felt by end investors.

2023 should bring with it a more attractive environment for fixed income investors with higher current interest rates creating opportunity for more lucrative returns.

Lastly, while the Fed’s efforts to curb inflation in 2022 were painful for many investors, 2023 should bring with it a more attractive environment for fixed income investors with higher current interest rates creating opportunity for more lucrative returns. That said, with volatility and uncertainty elevated (not to mention a potential recession on the horizon) caution and careful investment selection is of key importance. We believe security selection will be paramount as potentially weakening fundamentals will warrant caution. Investors who can adequately implement that careful approach while also meaningfully addressing social and environmental concerns should be well positioned as we move forward. We are grateful for the opportunity to serve our clients in meeting their impact investing goals over the past 25 years and we look forward to continuing to do so in the years to come.

In the news

To learn more about RBC Global Asset Management - Institutional Commitments.

Resources

Meet the team

Brian Svendahl, CFA

Senior Portfolio Manager, U.S. Fixed Income

Ronald A. Homer

Chief Strategist, US Impact Investing

Mindy Frye

Institutional Portfolio Manager

Raye C. Kanzenbach, CFA

Senior Portfolio Manager, U.S. Fixed Income

Eric Hathaway, CFA

Senior Portfolio Manager, U.S. Fixed Income

Teri Savage

Senior Trader, U.S. Fixed Income

Valinie A. Dayaljee

Assistant Portfolio Manager

Karen Ly

Analyst, U.S. Fixed Income

Ao Vang

Client Service Analyst

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