DivFolio: a Shiny application for portfolio divestment in green finance wealth management

Pasin Marupanthorn; Gareth W. Peters; Eric D. Ofosu-Hene; Christina S. Nikitopoulos; Kylie-Anne Richards

doi:10.1017/S1748499524000046

DivFolio: a Shiny application for portfolio divestment in green finance wealth management

Pasin Marupanthorn, Gareth W. Peters^*, Eric D. Ofosu-Hene, Christina S. Nikitopoulos, Kylie-Anne Richards

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

27 Downloads (Pure)

Abstract

This paper introduces DivFolio, a multiperiod portfolio selection and analytic software application that incorporates automated and user-determined divestment practices accommodating Environmental Social Governance (ESG) and portfolio carbon footprint considerations. This freely available portfolio analytics software tool is written in R with a GUI interface developed as an R Shiny application for ease of user experience. Users can utilize this software to dynamically assess the performance of asset selections from global equity, exchange-traded funds, exchange-traded notes, and depositary receipts markets over multiple time periods. This assessment is based on the impact of ESG investment and fossil-fuel divestment practices on portfolio behavior in terms of risk, return, stability, diversification, and climate mitigation credentials of associated investment decisions. We highlight two applications of DivFolio. The first revolves around using sector scanning to divest from a specialized portfolio featuring constituents of the FTSE 100. The second, rooted in actuarial considerations, focuses on divestment strategies informed by environmental risk assessments for mixed pension portfolios in the US and UK.

Original language	English
Pages (from-to)	1-44
Number of pages	44
Journal	Annals of Actuarial Science
Early online date	13 May 2024
DOIs	https://doi.org/10.1017/S1748499524000046
Publication status	E-pub ahead of print - 13 May 2024

Keywords

ESG investing
fossil-fuel divestment
portfolio management
Shiny application

ASJC Scopus subject areas

Statistics and Probability
Economics and Econometrics
Statistics, Probability and Uncertainty

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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title = "DivFolio: a Shiny application for portfolio divestment in green finance wealth management",

abstract = "This paper introduces DivFolio, a multiperiod portfolio selection and analytic software application that incorporates automated and user-determined divestment practices accommodating Environmental Social Governance (ESG) and portfolio carbon footprint considerations. This freely available portfolio analytics software tool is written in R with a GUI interface developed as an R Shiny application for ease of user experience. Users can utilize this software to dynamically assess the performance of asset selections from global equity, exchange-traded funds, exchange-traded notes, and depositary receipts markets over multiple time periods. This assessment is based on the impact of ESG investment and fossil-fuel divestment practices on portfolio behavior in terms of risk, return, stability, diversification, and climate mitigation credentials of associated investment decisions. We highlight two applications of DivFolio. The first revolves around using sector scanning to divest from a specialized portfolio featuring constituents of the FTSE 100. The second, rooted in actuarial considerations, focuses on divestment strategies informed by environmental risk assessments for mixed pension portfolios in the US and UK.",

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author = "Pasin Marupanthorn and Peters, {Gareth W.} and Ofosu-Hene, {Eric D.} and Nikitopoulos, {Christina S.} and Kylie-Anne Richards",

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AU - Nikitopoulos, Christina S.

AU - Richards, Kylie-Anne

PY - 2024/5/13

Y1 - 2024/5/13

N2 - This paper introduces DivFolio, a multiperiod portfolio selection and analytic software application that incorporates automated and user-determined divestment practices accommodating Environmental Social Governance (ESG) and portfolio carbon footprint considerations. This freely available portfolio analytics software tool is written in R with a GUI interface developed as an R Shiny application for ease of user experience. Users can utilize this software to dynamically assess the performance of asset selections from global equity, exchange-traded funds, exchange-traded notes, and depositary receipts markets over multiple time periods. This assessment is based on the impact of ESG investment and fossil-fuel divestment practices on portfolio behavior in terms of risk, return, stability, diversification, and climate mitigation credentials of associated investment decisions. We highlight two applications of DivFolio. The first revolves around using sector scanning to divest from a specialized portfolio featuring constituents of the FTSE 100. The second, rooted in actuarial considerations, focuses on divestment strategies informed by environmental risk assessments for mixed pension portfolios in the US and UK.

AB - This paper introduces DivFolio, a multiperiod portfolio selection and analytic software application that incorporates automated and user-determined divestment practices accommodating Environmental Social Governance (ESG) and portfolio carbon footprint considerations. This freely available portfolio analytics software tool is written in R with a GUI interface developed as an R Shiny application for ease of user experience. Users can utilize this software to dynamically assess the performance of asset selections from global equity, exchange-traded funds, exchange-traded notes, and depositary receipts markets over multiple time periods. This assessment is based on the impact of ESG investment and fossil-fuel divestment practices on portfolio behavior in terms of risk, return, stability, diversification, and climate mitigation credentials of associated investment decisions. We highlight two applications of DivFolio. The first revolves around using sector scanning to divest from a specialized portfolio featuring constituents of the FTSE 100. The second, rooted in actuarial considerations, focuses on divestment strategies informed by environmental risk assessments for mixed pension portfolios in the US and UK.

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ER -

DivFolio: a Shiny application for portfolio divestment in green finance wealth management

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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