Deeper Thought

While ESG arose in the space of listed equities, private debt managers can be more effective than equity funds or other fixed income investors in getting companies to meet their ESG goals.

Sir Isaac Newton was one of the greatest scientists in history; he founded classical mechanics and the law of universal gravitation. For all that, he lost his life savings in the South Sea Bubble of 1720.

Investors considering gold sometimes wonder about currency hedging. As gold trades in US dollars, Australians who buy it make a twofold bet.

After benefitting from climate calm for 8,000 years the foundations are being shaken. But with over 90 per cent of the global economies committed to net-zero we have a path to crack ‘both sides of the walnut’, according to Ruffer.

Stories help investors deal with uncertainty and imperfect knowledge. But contagious narratives which come to dominate can over-inflate expectations – and therefore prices – until a new one challenges and eventually replaces it.

The next generation are not automatically inclined to turn to their parents’ financial adviser, according to research from Invesco. Using the “power of curiosity” can aid retention, however.

It’s a perfect storm: Companies are staying private for longer and finding “myriad” ways to raise capital outside the traditional IPO route, while investors are becoming attracted to the investment opportunities they present.

Simple techniques like analogies and metaphors can help you connect with clients, but ‘storyselling’ needs to be simple and relatable.

The pursuit is focused, relentless and uncompromising – dismissive of any potential consequences. So what happens when the addiction is to risk?

We think small-cap investors are well-advised to follow the investment maxim, “Look to be fearful when others are greedy and greedy when others are fearful.”

Despite the -16.3% year-to-date (YTD) performance,1 we are impressed with the resilience of Emerging Market (EM) equities. In any year with the S&P down 19.9%, the US Dollar (USD) up 7.2%,2 Russian assets marked to zero, and China locking down its two largest cities, one would rightly cover their eyes before looking at EM performance….

Late July news of the Federal Reserve (Fed) increasing interest rates another 0.75% and a second negative quarter of economic growth (GDP) has created an uncertain environment for investors.