Cyber-attacks can hit investors and other stakeholders hard. Leaks, compromised customer data, denial-of-service attacks or file destruction can disrupt operations, lose client trust and lead to tougher legislation.
The uncertainty around the Sino-US trade requires robust multi-asset portfolios.We detail our approach. Elsewhere we explore the opportunities the boom in life sciences is creating in listed real estate and explain how we assess the strength of business models and corporate governance in a world where cyber-security risks abound. The Intelligence Report will take a summer break for the next month. Happy holidays to all our readers!
In this edition of Our Insights, read about how an alliance between global research universities is ratcheting up the quality and quantity of research into sustainable finance. We also explore how the ‘plastic revolution’ is progressing, present a multi-factor strategy for US equities and outline our asset allocation outlook.
Geopolitical risks, shifting central bank stances, Goldilocks looking fragile. The factors to consider when allocating assets are in constant flux. One asset allocation theme that should hold good longer-term is the transition to a lower carbon economy.
In this edition, Denis Panel, CIO of multi-asset, quantitative investments and solutions, presents our mid-year 2019 outlook, touching on issues ranging from trade to growth and inflation and the opportunities for investors. Elsewhere, we present a cross-sector review of investing in technological innovation, incorporating a risk-mitigating ESG perspective. We finish on the sustainability theme of ‘natural capital’, more specifically, a study of companies’ seafood sourcing and plastics/packaging strategies.
As many governments around the world work to address mounting concerns over climate change, electric vehicles (EV) can contribute to the long-term solution by helping to cut the transportation sector’s heavy carbon emissions. As emerging markets (EM) develop, their CO2 emissions are poised to rise precipitously, underscoring the need for electric cars to help address this daunting challenge.
Struggling for some time now to hit its inflation mark sustainably, the Federal Open Market Committee may move to adopt average inflation targeting, or even temporary price level targeting, in its upcoming strategy review. Such a shift should steepen the Treasury curve, lower real interest rates, and support a widening of long-forward TIPS breakevens.
In the US, core CPI and PCE inflation should gently firm in 2019, with the contribution from shelter being supplemented by a growing contribution from cyclically-driven services inflation.
Problems are not stop signs, they are guidelines. Robert H. Schuller Let us consider the four GDP components – consumption (C), investment (I), government expenditure (G) and net exports (NX). The outlook for NX is clouded by the Sino-US trade conflict.
Find out in Asia Connect.
Companies with a small market capitalization have many special features that can appeal to investors. Managers typically have a more entrepreneurial style and are more agile when it comes to responding to market demands and innovation trends. Such companies often attract buyers. Listed small-cap stocks are usually covered less extensively by financial analysts, and thus attract less market attention, which can make for attractive valuations. We believe a high-alpha investment strategy – one that involves managers skilled in benefiting from these features – suits this asset class best.
Sustainable investing allows us to better manage the risks – and pursue the opportunities – associated with the energy transition, environmental sustainability and inclusive growth.
Emerging market debt as an asset class has grown rapidly in recent years, increasing in breadth and depth. As a result, there is more sophistication in the types of fixed-income products to choose from. At the same time, regulatory and legal changes in many emerging countries have improved the solidity of investments in EM debt. In our view, a blended emerging market fixed-income portfolio combining local currency and hard currency debt is an appealing choice for investors.