Viewpoints

As sustainability-minded equity investors are looking beyond their home turf, the global importance of environmental, social and governance (ESG) standards is rising. But while their significance is relatively high in the “west”, emerging-markets companies have some catching up to, according to Lara Kesterton, Vontobel’s Head of mtx ESG Research.

Is EM the next asset class to go passive? The answer is «no», according to Dr. Marc-André Göricke, Senior Consultant at alpha portfolio advisors. In this viewpoint, he provides empirical evidence on the benefits of an active approach for EM assets.

After a perfect pandemic storm, the US Federal Reserve and other supertankers are filling their holds with strange cargo. This may seem like the age of indiscriminate buying – hardly a strategy many investors find alluring. Meanwhile, often-shunned merchandise from emerging markets may look promising to a discerning eye.

Why should investors care about ESG and why has the focus on ESG increased over the last several years? We believe the answer lies partly in the uncertain times in which we live. ESG shines a light on stability. It is not a luxury, but a critical part of risk management.

As autumn approaches, Head of Corporate Bonds Mondher Bettaieb and Portfolio Manager Claudia Fontanive-Wyss believe developed market corporate credit is entering a sweet spot. In this Viewpoint, they explain why.

The US government launches 2 new rules aimed at ESG and proxy voting. Individually they appear investor-first, but taken together may be seen as a political agenda to limit investor activism from social and environmental interest groups. We are concerned about the impact on effective stewardship.

Global markets remain fragile despite improved economic growth and investor sentiment. However, attractive valuations, easy monetary policy, government stimulus and promising cyclical drivers suggest that this is indeed a good time to increase exposure to emerging markets.

“You lose some, you win some”, a number of investors may think after the turbulent down and up on the markets. But what is set to happen now, after the recovery?

Senior Portfolio Manager Christian Hantel and Credit Research Analyst Diana Chiu reveal how taking part in new issues, in-depth credit analysis, and relative-value trades can boost performance in a global corporate bond portfolio.