463 news articles are available
Temperature scores: an innovative tool for ESG fundamental investors
2021 will be a pivotal year to curb climate change. Although global CO2 emissions dropped 7% in 2020 due to the effects of Covid-19-related lockdowns, stronger action will be needed at the upcoming Conference of the Parties (COP) 26 to keep temperature increases below 2°C and towards 1.5°C.1 Achieving the 1.5°C goal will require net zero global emissions by 2050. Today, the financial sector has new tools to measure the alignment of investment portfolios with the goal of net zero global emissions by 2050. Among these are temperature scores. To compute the temperature of company x, one compares the future emissions trajectory of that company with the corresponding trajectory of its sector, as deemed by the International Energy Agency (IEA) in alignment with a world where the temperature rise is limited to 1.5°C. So far, these scores have been adopted by only a handful of investors. A significant amount of work is still needed for investors to efficiently use such scores in their strategies.
ECB QE Monitor - April 2021
The Eurosystem started its QE in March 2015.
Shifts & Narratives #1 - Do not give up on fundamental valuations
Today, most investors are at a loss regarding what to think of the notion of value and valuations and, even most importantly, how to use it in portfolio construction.
Cross Asset Investment Strategy - April 2021
Find the latest edition of the monthly publication of our Research Team.
Global Investment Views - April 2021
A big shake-up is under way in bonds – rising UST yields, a steepening yield curve (2-10Y) and inflation expectations are leading markets to question whether we are facing a taper tantrum 2.0.
Why investors should look at Indian assets
India is the fifth-largest economy in the world, according to the World Bank, in terms of nominal 2019 GDP in dollars, and ranks second by population (1.38bn). Although it is one of the world’s fastest-growing economies, its GDP per capita is more than 29x and 4x lower than the USt or China, respectively (also according to the World Bank, nominal 2019 per-capita GDP in dollars). The potential for a catch-up in income over the next decades looks huge.
Allocating to real and alternative assets: a framework for institutional investors
Institutional investors have significantly increased their allocation to real and alternative assets, such as private equity, real estate, infrastructure and private debt, over the past decade, with the objective of enhancing the return or the expected yield of their portfolio, as well as improving its diversification. Integrating such assets into these portfolios raises a number of challenges linked to their limited liquidity, their strong specificity and their sensitivity to risks that are not integrated in traditional financial frameworks. As a result, standard portfolio optimisation is ill-adapted to portfolios mixing standard and alternative assets.
Dollar: short-term bull, medium-term dull?
As the global economy recovers from its worst economic slump since the 1930s, any investment decision will hinge critically on the evolution of the dollar. In the medium to long term, the extra-sized US fiscal stimulus will provide downward pressure to the dollar.
How hot is the inflation pot? Strategies to protect portfolios from inflation risk
As the global economy emerges from its worst slump since the 1930s, we envisage plenty of inflation fertilisers at stake, especially in the United States. Inflationary trends could emerge due to a combination of factors, including the cyclical recovery as countries try to get the pandemic under control and gradually lift mitigation measures. This will come at the same time as a super-sized US fiscal stimulus, thanks to the recently-passed $1.9tn fiscal package, which includes $1,400 direct payments to US citizens earning $75,000 a year or less, which will be disbursed quickly. The cheques could result in a big boost to consumer spending as early as April and could equate to the unfolding of huge pockets of pent-up demand in those sectors which have been hit the most by lockdowns. These trends – which are expected to unfold over the next twelve months – will join forces with more structural trends and a likely regime shift towards higher inflation as a way out of the crisis.