Viewpoints

Inflation was the dominant theme across financial markets in 2021, and we think it is likely to be a big driver of returns again in 2022.

Frank Häusler believes that emerging markets can be a real playground for active investors. “Emerging markets are certainly an investment universe, but not one for a passive approach,” the Vontobel investment strategist said at an investment conference in Zurich. Whereas choices were restricted in the past, nowadays stock markets in emerging markets resemble those in the US.

The EU taxonomy seeks to define what is and is not “sustainable” to support the transition to a sustainable economy. However, news that the European Commission will class certain gas and nuclear power projects as sustainable within the EU taxonomy is politically driven, and out of line with many investors.

Two questions – name a seismic ESG event that went largely unnoticed in 2021? The US leaned in and it's different to Europe, things will play out differently. What will be the impactful drivers in 2022? New data illumining landscapes and tying companies to issues are two areas to watch.

Portfolio managers Nuria Jorba, Sergey Goncharov, and Head of EM Corporate Bonds Wouter van Overfelt explain how Chile is racing to reduce their fossil-fuel emissions with the goal of becoming a pioneer in renewable energy.

Level playing field does not necessarily lead to the same results, as impressively demonstrated by twin studies. This also applies to quant funds. Even though the decisions here are made by financial mathematical models, their success still depends on external human influence.

How can bond investors generate returns from firms striving to move from fossil-fuels to renewable forms of energy? Christian Hantel, Pam Gelles and Marc Van Heems from the Fixed Income Boutique’s Corporate Credit team, explain their approach with a case study from the utilities industry.

In emerging markets, ESG risks can materialize quickly. In this case study, Head of EM Bonds Luc d’Hooge reveals how investors can tackle a deteriorating governance situation with the Philippines.

We often focus on noisy news rather than on long-term major trends. Volatility caused by short-term market reactions can create opportunities. China is such a case where recent news have been dominating investors’ attention. However, we believe there are five reasons to consider China a land rich in investment opportunities.