Viewpoints

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.

Financial return and positive impact are equally important in impact investing – but so is measurement.

After a multi-decade era of significant economic growth, China is now the second largest global economy and dominant in the MSCI emerging market index. How should emerging market equities investors balance this with the potential implications of recent economic and political moves out of Beijing and shifting demographic patterns?

We reap what we sow: the “double dividend” concept seeks to offer financial returns and a better tomorrow

Generating financial returns and making a positive impact on our planet and society are equally important in impact investing – but so is measurement. To effectively measure impact, we use a systematic and repeatable approach with a commitment to full transparency at all times.

Clean and safe water is essential to human survival. A key building block of our world, it’s also at the center of many global challenges. World Water Week draws attention to the need for innovation at a time of unprecedented challenges.

After a difficult 2022, bonds may be poised for unusually high returns compared to historic averages. And not just in the US -- we see opportunities in European CLOs and RMBS. They offer double digit yields for short-dated debt and look very attractive on a relative value basis compared to domestic credit.

After a tumultuous decade, the stars may be set to favor emerging market local currency bonds again. Portfolio manager Carl Vermassen says there are good reasons to believe their outperformance so far this year isn’t just a one-off lucky shot.

Investors can look back at having had to navigate a difficult first half of the year. Emerging-market equities, though posting positive returns, trailed their developed-market counterparts. Could things turn around in the remainder of the year, leading to an outperformance of EM stocks?

As the US Federal Reserve meets this week, what should investors brace for? Our Head of Corporate Credit Mondher Bettaieb Loriot suggests Fed officials are likely to hit the pause button on rate hikes as inflation and growth keep trending down. Across the Atlantic, however, the European Central Bank might not be ready to apply the brakes just yet.

With regional banks in the US concerned about deposit flight, financial conditions are tightening, increasing the probability of a hard landing for the economy. Quality companies that do not rely on leverage and whose earnings tend to be more resilient during times of economic weakness can be an attractive option for investors.

Multinationals listed in the US can provide exposure to global revenues. But an international approach also offers access to world leading companies that have no equivalent in domestic markets. And with valuations at a wide discount to the US, and below long-run averages, the story in international equities is both timely and compelling.

Is China’s property market on the mend? Are there any more humps in the road before it turns the corner? Our emerging markets credit specialists Cosmo Zhang and Wouter van Overfelt explain how contrarian investors who may have missed the strong rebound in December can now spot potential opportunities for generating alpha.

Low interest rates, declining tax rates, and constrained wages contributed to margin expansion for large US companies over the past decade. Companies whose growth is driven by these temporary factors may be more vulnerable in tough conditions, while quality companies with structural growth drivers designed to succeed in all conditions may prevail.