CESGA Module 8 Exam A+ Pass
(Verified)
How to develop investment guidelines - Answers -✔✔ 1. Context: review external
trends, assess firms' capabilities and position in the market, understand investment
convictions of key players
2. vision&mission: develop/realign vision, specify/reassert mission
3. investment principles: develop investing principles and beliefs for investment strategy
selection and investment decision making
4. investment strategies: define ambitions (medium&long-term) and evaluation criteria,
create strategy scenarios with focus options, evaluate and select an investment strategy
5. implementation: plan and monitor(KPIs, Governance, Culture, Responsibilities),
revise investment guidelines, adjust strategy as needed
Role of ESG in Macro Research - Answers -✔✔ 1. to understand how ESG factors
affect economic growth, macro-themes, consumer preference, regulatory change
2. to identify the most material ESG country indicators and understand their link/impact
with their financial performance
Process of Global Trend Analysis - Answers -✔✔ 1. Analysis of ESG Trends
2. Review of stakeholder reaction
3. Estimation of net financial impact
4. Identification of 'winners' and 'losers' in each sector/country
5. Asset allocation and investment decision
ESG Integration in Passive Strategies - Answers -✔✔ --> Investment universe
determines asset allocation of passive product
-chosen ESG investing approaches and index decision play important role
-ESG benchmark can be used as a strategy policy benchmark level or the asset-
allocation decision level
Portfolio Construction (fundamental strategies) - security selection process - Answers -
✔✔ -eliminate laggers based on one/more ESG scores/ratings (best-in-class) -->
negative screening
-selecting outperforms --> positive screening
-integrate ESG information into financial models and determine ESG contribution to
company's value
-seek thematic exposures to one/more distinct sustainability themes
Fundamental strategies - selecting outperformers (equity investor) - Answers -✔✔ -
identify companies better positioned to create long-term value
-adding ESG information in fundamental analysis by estimating financial impact of
business value-drivers (growth, profitability, risks)
(Verified)
How to develop investment guidelines - Answers -✔✔ 1. Context: review external
trends, assess firms' capabilities and position in the market, understand investment
convictions of key players
2. vision&mission: develop/realign vision, specify/reassert mission
3. investment principles: develop investing principles and beliefs for investment strategy
selection and investment decision making
4. investment strategies: define ambitions (medium&long-term) and evaluation criteria,
create strategy scenarios with focus options, evaluate and select an investment strategy
5. implementation: plan and monitor(KPIs, Governance, Culture, Responsibilities),
revise investment guidelines, adjust strategy as needed
Role of ESG in Macro Research - Answers -✔✔ 1. to understand how ESG factors
affect economic growth, macro-themes, consumer preference, regulatory change
2. to identify the most material ESG country indicators and understand their link/impact
with their financial performance
Process of Global Trend Analysis - Answers -✔✔ 1. Analysis of ESG Trends
2. Review of stakeholder reaction
3. Estimation of net financial impact
4. Identification of 'winners' and 'losers' in each sector/country
5. Asset allocation and investment decision
ESG Integration in Passive Strategies - Answers -✔✔ --> Investment universe
determines asset allocation of passive product
-chosen ESG investing approaches and index decision play important role
-ESG benchmark can be used as a strategy policy benchmark level or the asset-
allocation decision level
Portfolio Construction (fundamental strategies) - security selection process - Answers -
✔✔ -eliminate laggers based on one/more ESG scores/ratings (best-in-class) -->
negative screening
-selecting outperforms --> positive screening
-integrate ESG information into financial models and determine ESG contribution to
company's value
-seek thematic exposures to one/more distinct sustainability themes
Fundamental strategies - selecting outperformers (equity investor) - Answers -✔✔ -
identify companies better positioned to create long-term value
-adding ESG information in fundamental analysis by estimating financial impact of
business value-drivers (growth, profitability, risks)
