TIIP’s inaugural paper is “Portfolios and Systemic Framework Integration: Towards a Theory and Practice“, which lays the groundwork for the project and argues that the strength or weakness of environmental, societal and financial systemic frameworks substantially impacts the ability of investors to generate returns. Without the smooth function of these systems, returns to all portfolios suffer. Conversely, the stability and enhancement of these systemic frameworks can increase positive investment opportunities for all.
In addition, portfolio managers through their collective investment decisions can disrupt these same systems either negatively or positively—creating instability or enhancing their investment potential in ways that create either vicious or virtuous circles of mutual influence. As we enter the heart of the 21st century, investment portfolios and the systemic frameworks that support them will be increasingly interdependent in an increasingly complex and interrelated world.