There goes International Women’s Day. In financial markets, many have highlighted notable woman who have made their way to a distinctive and influential status. This is undeniably helpful, though also is an indication one can only find a few women, while everyday the commentary is predominantly from men. One day is not a good benchmark,…
Covid and COP26 may not seem like a natural pairing beyond their headlines and emotive reactions they induce. Yet there are long-term investment consequences attached to both. After the initial ‘hurray’ on the global opening of borders and possible travel, the less exciting news is on the cost of Covid tests, the potential expense of…
An enduring question is whether one can identify a fund manager that can deliver outperformance relative to the index. Even before ETFs become the alternative, numerous studies have either proven or disproven the case for active management, with no real resolution. That said, the consistent after-fee underperformance of the median active manager is well known….
Don’t tell your young folk; but being good is hard. One can “veneer” an ESG, sustainable, ethical or any-nomenclature-one-likes approach, and then turn to the much more difficult decision on how that works in practice. Take on this challenge. China produces around 90% of the global requirement for polysilicon, used in making solar panels. All…
Outside equity, fixed income and well-known alternatives there is another world of investment options that rarely find their way into portfolios. Examples include agricultural land and businesses, energy and carbon trading, water rights, fishing licences or music royalties. It is unsurprising that few consider these options, as they are far from simple to judge and…
With a current focus on climate and sustainability transformation, other life-changing developments may be battling for similar attention. ETFs have a habit of cottoning-on to popular themes and ‘climate’ or ‘clean’ captures this zeitgeist. Cross-sector thematics, however, can struggle for a sensible screening tool to find the appropriate companies. Some such as automation, cybersecurity or…
ESG is now a required mantra. The most unusual funds claim this status even if they include gambling, governance recalcitrant or those with socially questionable ethics. A change or improvement is enough to get it over the line regardless of the problematic issues that are imbedded in the company’s business. Even more so are those…
Many concepts in science illustrate the incapacity of the natural world to control everything. Once you introduce or determine an aspect, others fold-in or become uncontrollable. The adage that central banks can try to influence rates, inflation or currency, but not all three, is an example of a parallel problem. China is looking down the…
Is private equity (PE) the key missing part of adviser portfolios? Endowments, the Future Fund (FF) et al, have heralded their high allocation to PE amid claims to better outcomes than those labouring in listed equity markets. This is not the first time the issue has been raised, the Future Fund is noting its allocation…
Just what is China doing by limiting all kinds of activity and corporations? Many see this an authoritarian regime imposing restraint on its citizens. Yet this is not exactly unusual. Every domain imposes rules. Our local media content, our banks have been given the book on what they can and can’t do, our energy market…
