Viewpoints

Many US investors are overweight domestic versus international strategies for the wrong reasons – home bias and benchmark anchoring. In our view, investors should focus on great companies, regardless of where they are domiciled. An active international strategy can help US investors expand their opportunity set, diversify risks, and improve their portfolio returns.

Japan’s economic success story after World War II was like a phoenix rising from the ashes. But it didn’t last, resulting in the “Lost Decade” and China subsequently taking its place as the world’s second-largest economy. Comparing the Japan of yesteryear with today’s China raises the question whether China could soon face a similar fate.

Adding women to corporate boards can improve the impact a board has on company performance. Yet progress has been slow. Companies that recruit former CFOs and CEOs simply cannot find enough female board members. Expanding talent pools can bring more women into the fold.

Over the last decade investors have been forced to broaden their horizons, but many investors continue to overlook Emerging Market Local Currency Debt. Our Fixed income team offers five reasons why you should think about giving emerging markets local currency a more permanent allocation in your investment portfolio.

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?

After some troubled years, bonds are back. In a big way. Our team explains the reasons why we believe bonds are poised to be one of the most attractive risk/reward propositions of the coming year.

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.

Is a company that sells a $300 t-shirt a better investment than one that sells a $10 t-shirt? The answer lies in the strength of a company’s brand and, in turn, its pricing power. Or course, profit margins are an important consideration.

David Souccar, portfolio manager and senior research analyst, explains why, in the quest for quality, your portfolio shopping basket would be incomplete without a trip to the international aisle.

Many overlook ESG criteria in the Emerging Markets sector, but this is missing a key opportunity it can offer: by reducing volatility, its application may make EM debt more attractive to those interested in the space but avoid it nonetheless due to political and other risks.

Welcome to this year’s first edition of mtx perspectives, which will highlight interesting developments across the world of global emerging markets. We start with a look at the digital revolution in Latin America.

The regulatory environment for ESG has been shifting, and this means new rules of the road regarding labelling and reporting. What can we expect to see in 2024 and in the near-term?

We believe that in the wake of current energy security concerns, the energy transition has gathered impressive momentum and is now at an inflection point. What does this mean for investors?

Portfolio Manager David Souccar identifies three types of quality companies: Leaders have a rare combination of high returns and high predictability, Defenders grow slower but can protect in down markets, and Opportunity seekers can profit in uncertainty but are less predictable. Like a high-performing team, a successful quality portfolio has the optimal combination of all types of players.

After two years of grappling with an ailing property market that has weighed on growth in the world’s second-largest economy, China’s government has pledged stronger fiscal measures and signaled more flexible monetary policy. Will they move the needle?

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.

For the world to meet net-zero targets, massive energy transition capital is required. Governments can’t fund this alone. Asset allocators have a role to play and impact investing will be key.

Nature is our source. Challenges to natural capital are prompting the world to rethink its relationship with nature and the value we place on it. This article provides a bird-eye view of why investors should care about the semantics and monetization and regulation of nature.

Asking the right question is a skill in itself. Read the FAQ seasoned investors ask our impact investing experts.

Recent advances in generative artificial intelligence have propelled some stocks in the tech space to nosebleed valuations. By failing to distinguish the level of certainty around the long-term benefits of AI, markets have disproportionally rewarded some companies. Is this playing out in a logical way? Or is the market missing something crucial?

Change rests in our hands. Impact investing is gaining in popularity as investors look for increasing sustainability in all areas of life. We share three reasons that institutional and professional investors told us keep them turning to impact.

Don’t fall prey to the myths surrounding impact investing.

China’s last few years have presented new economic challenges, and Beijing has completely rewritten its policy priorities and playbook. But looking ahead, this does not mean Chinese investment won’t be rewarded in the future; rather that policy-compliance should be a criterion considered by investors.

Short-term government bonds have enjoyed heightened levels of attention this year, but what will give fixed income investors that extra performance boost as the finish line for 2023 draws closer? Our Fixed Income Boutique’s corporate bond team shares five reasons why switching to actively managed investment grade bond funds could deliver that extra edge.