Equities

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.

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?

To say addressing carbon emissions is urgent errs on the side of understatement. Tackling the transition toward decarbonization requires a collective effort, and carbon markets have a key role to play in the climate change fight – though those opportunities also come with some challenges.

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.

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.

For a single company, supply chain oversight can be complex. For professional investors with multiple companies in their investment portfolios, this task can become massive. Complexity, however, is not something to hide behind.

ESG research is an extension of our philosophy of long-term thinking and fits seamlessly into our existing research process. We focus on material issues rather than broad ESG scores, which enables us to understand and get ahead of risks that can jeopardize earnings predictability.

When comparing the earnings trajectory of emerging markets corporates with that of their developed-market counterparts, many investors consider this a lost decade. Are emerging market stocks now set to bounce back?

After a decade of underperformance, we believe emerging market equities are set for a brighter next chapter and any further short-term pain will be outweighed by the opportunity for longer-term gain. Here are three reasons why: