Equities

The AI boom has increased demand for data centers, but US electric utilities lack the capacity to power them. This has led to a rise in self-generation solutions, benefiting companies like Schneider Electric and National Grid. The issue was a key theme at the recent Data Center Dynamics trade show.

2025 is poised to be another positive yet complex year for equities. Balancing core positions in industries driven by secular trends – like semiconductors, AI hyperscalers, and the energy transition – with opportunistic exposures that can benefit from cyclical or policy-induced rebounds can help navigate the challenges ahead.

Discover how our Impact Investing team navigates economic shifts and political uncertainty to help drive sustainable change. In our sixth annual Impact Report, we reveal our strategies, methodologies, and results in investing in low-carbon solutions and smart infrastructure.

Investors have been chasing their favorite AI names around the track, without considering how they could sustain their earnings growth for a prolonged period or through a recession. As long-term investors, we aim to remain focused on resilient companies with durable business models, which we believe will finish the race.

Navigating challenging markets requires assessing earnings and revenue trends and digging into balance sheets. But financial metrics alone can be backward looking. A fundamental understanding of industries, companies, and markets can provide important insights that can help avoid hidden risks and identify overlooked growth drivers.

Is ESG simply a different label for quality or could quality stand as a less controversial and politically sensitive description of highly sustainable companies? The question of whether ESG characteristics of listed companies form a new independent factor and a distinctive source of returns is an important one to address.

We believe answers to critical questions about weight loss drugs will help determine the sustainability of success that some pharmaceutical stocks have enjoyed: How many people will be on the drug, and at what price? Which pharma company will be the winner of the R&D race?

Over time the definition of quality has broadened and become subject to a variety of interpretations, with sometimes significant divergence in the performance of quality strategies depending on market conditions.

Are stock markets poised for a good year in 2024? Jean-Louis Nakamura, head of the Convictions Equities Boutique takes a comprehensive look at the various factors that indicate it may well be.

As the landscape shifts, investors may now be exposed to risks that were previously disguised by a prolonged era of accommodative monetary policy. Today, it pays to be wary. A focus on quality can protect in a downturn and provide a smoother ride through the cycle.

Legendary investor Charlie Munger, who recently passed away, followed a simple philosophy of “soldiering on” – persevering through challenging times while also knowing when to seize opportunities. Munger’s wisdom guides us as we manage key risks and seek to find opportunities in 2024.

The wave of alarming headlines can sometimes seem to dwarf the social challenges the world faces. But Impact investing addresses a wide array of important issues that may be a bit more difficult to grasp. The latest Impact Report for Vontobel’s Global Impact Equities strategy provides case studies to highlight the steps towards positive change.