ESG adoption is on the rise, fuelled by client demand and a desire to make an impact. As ESG momentum continues to gain steam, investors are refining and evolving their strategies. This can be seen in the implementation arena, where
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
The conflict in Ukraine has delivered a commodity price shock similar to that of the early 1970s, shattering hopes that the inflationary uptick may prove to be transitory. As inflation reaches multi-decade highs, we analyse what is driving inflation across
Capital Ideas WEBINARS Globalisation: the reports of its demise are greatly exaggerated COVID-19 disruptions showed that global supply lines aren’t perfectly efficient machines. And recent moves by China and Russia have reminded the world that approaches to politics and the
The buzz swirling around the electric vehicle (EV) sector has been front and centre for investors looking to profit from the world’s transition to a net-zero carbon economy. Tesla recently skyrocketed to a US$1 trillion market cap, joining an elite
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
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 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
With the US Federal Reserve in a full-on fight against inflation, concerns are rising that tighter monetary policy could tip the US economy into a recession. A look at longer-term financial cycles …
Fast-growing digital and tech companies generated a lot of investor excitement over the past decade, not to mention an outsized share of market returns. Since the start of 2022, however, many of these market darlings have taken a beating. Amid
Global growth is likely to slow alongside increasing geopolitical risk and uncertainty, tighter monetary policy, and a slowing Chinese economy. There is also a greater risk that inflation will remain higher for longer, given supply chain ….
The recent surge in commodity prices has amplified the acceleration in inflation that we have been seeing globally, arising from disruption to global supply chains caused by the pandemic. Expectations just a few months ago were that the drivers …
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, globalisation has
China’s once-in-a-decade census1 revealed some interesting demographic issues. The country has 264 million people aged 60 and above, which equates to 18.7% of the population, considerably higher than 13% in 2010. The 12 million births …
Moderating global growth as policymakers grapple with persistent inflation Global economic growth looks likely to continue in 2022, albeit at a more modest pace. The COVID-19 pandemic does, however, add uncertainty to the outlook, as evidenced by the recent emergence
Our second annual study captured views from over 1,100 professional investors from 19 markets around the globe on ESG issues
Global economic optimism declined in the first quarter of 2022. War in Europe added to already stiff inflationary headwinds from continued supplychain disruptions. A more hawkish tone from the Fed and other major central banks fuelled concerns of slowing global
Global economic optimism declined in the first quarter of 2022. War in Europe added to already stiff inflationary headwinds from continued supplychain disruptions. A more hawkish tone from the Fed and other major central banks fuelled concerns of slowing global
It feels as though US policy makers have spent the entire post-global financial crisis period trying to generate inflation. Now that it’s here, it seems like the wrong kind of inflation. How do you see inflation playing out in the
It’s a common preconception that rising interest rates are bad for bonds. While rate hikes are undoubtedly a headwind for fixed income assets, investors tend to overestimate the impact of rising rates and can overlook the benefits of holding bonds
In 2021, we developed and deployed a centralized ESG Tracker that enables all team members to systematically store relevant information in a location that can be easily accessed by anyone who requires it. During the year, we were able to
In this Q&A, Kirstie Spence and Robert Burgess share their views on Russia, commodity prices and the impact of the conflict on emerging markets. How does the Russia-Ukraine conflict compare to previous periods of geopolitical instability? Kirstie: The current situation
What is your view on inflationary pressures and the outlook for global growth? Philip: Global growth was recovering strongly post-pandemic, particularly in the US and Europe. The inflation spike is going to dampen this growth, the ramifications of which depend
In 2021, we developed and deployed a centralized ESG Tracker that enables all team members to systematically store relevant information in a location that can be easily accessed by anyone who requires it. During the year, we were able to
Despite well-publicised moves to restructure its economy over the past few years, China remains a key investment destination due to the attraction of its enormous domestic market. And as the world’s second-largest economy, China is also deeply interconnected with the
A further rise in commodity prices is a key channel through which the conflict in Russia/Ukraine might affect the rest of EM. If the commodity price increase is sustained, some EM countries may suffer from a deterioration in the terms
1. High yield is a growth sensitive asset class: The high-yield market has historically produced positive results over a full cycle, but it tends to do particularly well during the recovery phase of the business cycle as default rates fall,
Higher inflation and in some cases, rising inflation expectations, have been a key focus for investors this year, in both emerging and developed markets (DM). This is against a backdrop of large fiscal and monetary stimulus from governments around the
A key channel of contagion to fixed income markets outside of Russia/Ukraine is likely to be through commodity prices. Russia is the largest exporter of natural gas and the second-largest exporter of crude oil and petroleum products. The US has
Russia’s military aggression against Ukraine, which has become Europe’s largest ground war in generations, has impacted millions of people and triggered a large-scale humanitarian crisis as vulnerable Ukrainians take shelter or flee their homes. The intensification and spread of the
Russia’s invasion of Ukraine has intensified focus on geopolitical risks. However, investing amid geopolitical uncertainty is not new. Seasoned portfolio managers Kirstie Spence and Victor Kohn discuss how they approach geopolitical risk in emerging markets.
In a world of rapidly escalating prices, Russia’s invasion of Ukraine has exacerbated inflationary pressures. We have seen a direct impact on energy and a broad swath of agricultural commodities, and are likely to see a broadening of price pressures.
The West is united John Emerson, former U.S. ambassador to Germany Russia’s military aggression against Ukraine — Europe’s largest ground war in generations — has impacted millions of people and triggered a large-scale humanitarian crisis. From a financial perspective, the
Russia’s military aggression against Ukraine, which has become Europe’s largest ground war in generations, has impacted millions of people and triggered a large-scale humanitarian crisis as vulnerable Ukrainians take shelter or flee their homes. The intensification and spread of the
Capital Group Japan Equity Fund (LUX): Japanese equities fell, although they held up better than the global average after global stocks retreated in response to the news that Russia had invaded Ukraine. Sector returns were mixed. Consumer discretionary and …
Key takeaways The track record of a company’s management team is a key indicator for understanding future potential. There are interesting examples of growing companies attempting to disrupt large industries. Europe is a fertile hunting ground across many different industries.
Podcast – Episode #1 The various countries that make up emerging markets have shown incredibly rapid and dynamic development. In this first episode we look ahead to the next decade with Capital Group Investment Specialist Valeria Vine: where are emerging
Outlook 2022: As we head into a new year, it’s clear in hindsight that the market downturn of 2020 was short-lived and entirely related to the COVID-19 outbreak. In my view, that means the powerful upswing in equity prices since
Against the spectre of soaring energy prices, labour shortages and supply chain constraints, a question that has arisen in the US has landed firmly on European shores: will inflation continue to rise and how persistent will it be? The prevailing
Disappointing US dollar bond returns in EM local currency debt has led to a decline in flows into the asset class over the past decade. In this paper, we discuss the key reasons to invest in EM local currency debt, some of the factors behind the recent weakness in the asset class returns and prospects for the asset class going forward.
The gap between emerging market (EM) inflation over developed market (DM) inflation has remained contained this time, in part due to weak economic conditions, muted domestic credit creation and proactive EM central banks. Tighter EM financial conditions should anchor longer
Key takeaways The balance of risks for the global corporate bond market continues to be finely poised. Rich valuations, high inflation and potentially slowing global growth need to be balanced against improving credit fundamentals, still broadly supportive technicals and continued
Human capital refers to skills, knowledge and experience possessed by an individual or population, viewed in terms of their value or cost to an organisation or country. Within our Environmental, Social and Governance frameworks, human capital is identified as one
Executive summary Global investors strongly prefer an active approach to ESG. Threequarters use active funds to integrate environmental, social and governance (ESG) issues more than double the proportion using passive funds and trackers. Rather than investing in funds that merely
A fundamentally driven bottom-up investment process A unique approach with multi-level risk-management A higher quality approach to credit Environmental, Social and Governance (ESG) issues form an integral part of our approach Established and strong track record – the strategy has
High inflation could persist in 2022, but we’re not returning to the 1970s Inflation is like chewing gum. It’s sticky and flexible, and you definitely don’t want to step in it. For the past 30 years, investors in developed markets
Several colleagues and I made our first journey back to China in more than 15 months as we start to get back to on-the-ground research. Our trip in May took us to 16 cities and included close to 90 meetings
Positive but slower global growth is meeting with greater inflation pressures The global economy maintained its Growth potential is on track to outpace pre-pandemic times positive overall trajectory, though economic indicators grew more mixed. Returns across fixed income were mostly
Building a resilient and balanced portfolio should be a priority for many investors in today’s environment of heightened financial market uncertainty and volatility across a range of asset classes, including equities. With that in mind, now’s a perfect time to
Fast and affordable internet service has become a critical component to working, studying, accessing health care and participating in the political process – both in the US and across the globe. In 2016, the United Nations went so far as
