(WSJ) Investors Pile Into ETFs Dedicated to Socially Responsible ESG
For those who questioned if ESG has staying power, 2020 responded with a resounding “yes.” According to FactSet, flows into US ESG-related ETFs reached a record $27.4 billion in 2020, doubling the size of the sector. With a new climate-friendly administration taking office in the US, demand for ESG funds should continue to rise in 2021 and beyond.
Companies and their employees must respond to the rapidly changing conditions that the COVID-19 crisis has thrust upon the workplace. Firms must help their people adapt and evolve to those changes. By addressing these issues now companies will be stronger and prepared for future disruptions.
This article published by McKinsey suggests these six steps to reskilling:
Job Interviews Are Broken. There’s a Way to Fix Them.
Adam Grant makes the argument that “Credentials are overrated, and motivation is underrated…” Too often firms focus on past experience, betting on the wrong people (and missing out on the right ones).
How can we avoid those mistakes?
The article suggests that by identifying the key skills and values in advance and then creating a standard set of behavioral and situational questions to ask every candidate will not only lead to better hires but also eliminate potential biases.
But what about those who don’t interview well? Or those who exaggerate to make a better first impression?
Adam suggests that adding work samples to the interview process – something that a candidate has produced in the past (i.e. a project or a live simulation) will be much more telling and predictive.
Suggesting that experience doesn’t matter may be exaggerating the point. That said, I’d rather hire someone who can problem solve and handle conflict vs. reminisce about our experiences in Ithaca, NY.
(Bloomberg) Why Direct Lending Is a Booming Part of Private Debt
Investor demand and their search for yield has contributed to the continued growth of Private Credit and specifically, direct lending in 2019. There seems to be no signs of slowing down in 2020 with 39% of investors saying they expect to increase their commitments to private debt funds in the next 12 months.
What happens when things slow down? Can the non-bank lenders survive?
With many fearing a recession on the horizon, it is refreshing to hear that Goldman is optimistic about 2020. There are several factors noted in the article including consumer spending and the trade war eventually subsiding. The risk of a recession seems less likely in the near-term.