1. Introduction The STOXX WTW Climate Transition Indices are a new approach to managing climate risk that offer investors a systematic and transparent way to incorporate climate transition risk into their investment decisions. 1 The index methodology leverages WTW’s proprietary
ESG risks in supply chains: Connecting the dots Supply chains are vital to many businesses. As they grow more complex, companies are exposed to a wide range of risks from environmental, social, and governance (ESG) factors. These risks can exacerbate
As investors increasingly look to manage the carbon exposure in their portfolios, it is critical that they have the right tools. There are many ways investors can address the carbon exposure in their portfolios, including explicit …
EMEA-Listed ETF Flash Flows – Weekly as of 19 August 2022 ETFs experienced strong inflows last week, adding $3.8bn. Equity led with net inflows of $3.3bn while Commodity lost …
This downturn is global, not US-centric. The current gap between optimistic equity analysts and cautious economists is particularly pronounced. We believe earnings estimates are at risk as the slowdown we anticipate …
Wat is de invloed van de afname van biodiversiteit op onze wereld en wat kunnen beleggers doen om dit proces tegen te gaan? Op die vragen zoekt Pictet Asset Management als onderdeel van het Impact Partnersconsortium de antwoorden.
Historically, emerging market (EM) local currency debt has tended to weaken with rising US interest rates, but our research shows that much of this has generally occurred before Federal Reserve (Fed) interest rate hikes have taken place. As the Fed
Weekly commentary – August 15, 2022 Stocks are rallying as markets believe inflation is waning and the Fed will slow hikes soon. We don’t think the rally is sustainable. Why? We see the Fed hiking rates to levels that will
Om de opwarming van de aarde tegen te gaan, moet de wereld misschien verder gaan dan het bereiken van netto nul en beginnen met actief koolstof uit de atmosfeer te verwijderen. Maar liefst 140 landen en honderden bedrijven over de
Introduction Welcome to another edition of Vantage Point, the quarterly economic and markets outlook from the Global Economics and Investment Analysis (GEIA) team. The past three months have seen a dramatic selloff of risky assets, driven largely by a recalibration of expectations
The Russia-Ukraine conflict, a spike in commodity prices and rising global inflation have raised fresh questions about the outlook for emerging markets (EM) debt. Recent forecasts from the International Monetary Fund and World Bank suggest global growth is slowing. And
In the wake of an unprecedented economic cycle, we have noticed an uptick in investor questions regarding direct loans. Supply chain imbalances, higher raw material costs, rising interest rates, labor shortages, and geopolitical risks each contribute to business risk— and
Stijgende wereldwijde rentes en volatiele markten hebben zwaar gewogen op zowel het aanbod van als de vraag naar obligaties, vooral in opkomende markten (EM). Toch bleef één segment verrassend veerkrachtig. Uit onderzoek van Pictet Asset Management blijkt dat obligaties die
The return of inflation and macroeconomic uncertainty is shaking up equity market leadership. We caught up with Grant Cambridge to discuss why including dividend growers as part of a wider portfolio could help investors dampen these risks, and how 25
When Volatility Overstays Its Welcome, Opportunity Knocks Like many other market participants, we’re laser focused on inflation in the second half of 2022. While the July inflation reading came in below expectations, our optimism remains tempered. Much of the decline
Are we witnessing the end of globalisation or are reports of its demise greatly exaggerated? Talha: Globalisation is the process of growing interdependence between the global economies as measured through cross-border trade, finance, information and migration flows. Historically …
The answer, of course, is that it can’t. Hou, Xue, and Zhang’s (2014) empirical model does price portfolios sorted on prior year’s performance, but for reasons outside of q-theory—it does so by including a fundamental momentum factor, i.e., a factor
This is very new for younger investors. Interest rates are rising at an alarming pace, as central banks admit that inflation is no longer just a series of transient shocks, but there is a risk that it becomes more ingrained.
Last month, we discussed how the market narrative was evolving and investors were beginning to put more onus on the challenges to growth. That trend continued in July as traders increasingly incorporated how restrictive monetary policy could slow activity. Towards
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The Forces Shaping the Outlook Global slowdown intensifies as downside risks materialize. A tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022. Performance was slightly better than expected in the first quarter, but world real GDP is
Cliff’s Perspective This adds another three months of data to the May entry in our series of value spread updates. Over the past two months, some portion of the market went temporarily (I hope) insane, punishing value, as we measure
Introduction There is no respite for the global economy. Two years ago, it was shaken by the onset of the pandemic, as an overwhelming health crisis turned into an overwhelming economic crisis. While the after-tremors of the pandemic still reverberate,
EXECUTIVE SUMMARY The almost 25% market selloff has removed the S&P 500’s overvaluation, but we are still not at levels generally observed at bear market bottoms. Roughly one-third of our Bear Market Bottom Checklist has triggered. After being outright bearish
Bitcoin isn’t the great evil we have been led to believe. Until you’ve looked deeply into something, you’re not in a position to judge it, says Daniel Batten. For as long as I can remember, protecting the environment was my
Market Themes Whatever It Takes 2.0 Keep On Smiling
Investors are witnessing unprecedented market conditions. Within a turbulent market environment charaterised by a high inflationary pressure, a shift from global to “glocal” trade patterns and a fading era of cheap energy, how can an active and agile multi asset
Asset Category ETFs continued to see net outflows last week, losing $122mn. Equity led with net outflows of $1.9bn while Commodity lost $310mn. Fixed Income, on the other hand, posted strong net inflows of $2.1bn.
Ondernemingen die beveiligingsproblemen aanpakken, bieden aantrekkelijke lange-termijnopportuniteiten voor beleggers. Daarvan is Anjali Bastianpillai, Senior Product Specialist van de Securitystrategie bij Pictet Asset Management, stellig overtuigd: ‘Je veilig voelen is een menselijke basisbehoefte. Of het nu gaat om bescherming tegen cyberaanvallen,
Understanding the potential impact of climate change and the interaction between different stakeholders, initiatives, metrics, and tools presents challenges. There is a growing need for investors to understand the risks, opportunities and the impact on investment portfolios that come with
The fragility of global supply chains exposed during the COVID-19 pandemic remains one of the top economic challenges facing the world. In one respect, globalisation has long been characterised by developed market countries offshoring production to lower cost locations. But
At our ESG fund, as part of our due diligence on Bitcoin Mining, we recently examined the 7 Most common ESG arguments against Bitcoin and found all of them to be untrue. Sometimes, the diametric opposite was the truth.
2022 has changed everything that we in the environmental, social and governance (ESG) sector thought we knew about Bitcoin. We thought it was a net negative for the environment. We could not have been more wrong. It turns out that
Big data is fueling, informing and empowering businesses globally. As growthoriented investors, we see opportunities in best-in-class companies that are creating the technologies driving big data services. Highlights The demand for high-octane data has permeated every sector, with technologyrelated investments
It was a bruising first half of the year for financial market participants, with U.S. and global stocks entering bear market territory while core bonds, generally considered “safe-haven” assets, declined by double digits. Russia’s war on Ukraine continues to warp
Aandelen blijven kwetsbaar voor een golf naar beneden bijgestelde winstprognoses, vooral in de VS en Europa. Vertragende economische groei, stijgende inflatie, strakker monetair beleid en verhoogde geopolitieke risico's hebben allemaal hun tol geëist in de financiële …
Biodiversity is equally vital to people and planet. It gives us clean air and water, food and medicines. As mentioned in The Economics of Biodiversity: The Dasgupta Review1, Biodiversity is the diversity of life and can be read at various
Bad news was good news in July. With recession risks becoming more imminent especially for Europe, markets priced in an earlier easing of monetary policy. For the US, rate cuts are priced in as early as end of Q1 2023.
The 2 biggest problems with Solar & Wind are that they “don’t match where” and “don’t match when” most customers want it. These two problems lead to a plethora of other problems: curtailment, load balancing, voltage regulation, power wasted in
China has once again captured the attention of investors seeking shelter from unprecedented global policy tightening. This is understandable, as the country was first in, first out of the Covid pandemic and remains ahead of the curve in terms of
De digitale revolutie is niet alleen een zegen voor de wereld. Voor opkomende markten kan het wonderen verrichten voor de economie. Digitalisering zou deze landen immers in staat kunnen stellen om trage ontwikkelingsstadia over te slaan.
Can you elaborate on the growth and income philosophy of CGEGI and how that informs your positioning? Alfonso: For me, one of the most attractive features of the growth and income approach is that it gives managers complete discretion to
Investment returns for a private markets portfolio (or for that matter, public markets portfolio) are a derivative of a number of variables. In the current market environment, for example, rising rates, inflation, geopolitical risks, supply chain issues (to name just
Climate change and carbon emissions in particular have recently received a lot of attention from governments, non-governmental organizations (NGOs), businesses and the general public, and rightly so. But we must be wary of carbon emissions tunnel vision and instead take
How to Prep Your Portfolio for a Different Kind of Recession Risk: During the first half of 2022, global equity markets tumbled around 20% from their January peak, with losses on typical stock/ bond portfolios almost as large, as bonds
Capital Goods Companies, the Enablers of the LowCarbon Industrial Revolution As an ever-increasing number of nations announce ambitious climate objectives, the global economy is embracing net zero carbon as a common direction. For example, the European Union targets a 55%
The paper looks to answer these questions with a unique empirical study of ESG’s effect on the global equities lending market.
Summary High inflation, aggressive monetary tightening, and the potential for recession are all global fears. However, for many emerging markets countries, navigating a recovery means taking a clear course of action: keep inflation under control at the risk of slowing
Sovereign ESG revisited Introduction Although the use of sustainability metrics in sovereign fixed income markets is becoming more mainstream, there is a lack of consensus on how to appropriately assess countries’ Environmental, Social and Governance (ESG) performance. A particular challenge
When describing credit markets, investors and investment managers often define the available universe as synonymous with the public bond markets (and, perhaps, middle market and other leveraged loans). Seemingly unnoticed by investors, however, is that the allocation and provision of
