Companies that have promised publicly to run their business for the benefit of all stakeholders have handled the Covid-19 crisis and social and racial inequality worse than companies with no such commitment, a new report from The Test of Corporate Purpose finds.
Investors continued to prefer “safe haven” money market funds as they shifted assets back into all types of open-ended funds in the second quarter, buoyed by a strong recovery in global financial markets, according to data compiled by The European Fund and Asset Management Association (EFAMA).
Written by Sacha Bernasconi, portfolio manager of the SYZ Green Bonds Fund.
The catastrophe of Covid-19 has given the world one silver lining. A wake-up call. A sobering vision of the future, and the economic and social devastation climate change will bring. As responsible investors, we must be mindful of this portent of the future and accelerate our efforts in delivering progressive action. It is time to move the dial.
The search for alpha is expected to lead to a long-term shift to higher emerging markets allocations, both in equity and fixed income, according to a survey of institutional investors by Vontobel.
Divestment is the last resort for responsible asset owners seeking to create change, says Storebrand
Several large European banks including BNP Paribas, Credit Suisse, ING, Natixis, Rabobank, and UBS made the headlines earlier this month when environmental groups alleged that they had financed some USD10 billion of oil trading from the Amazon rainforest over the past decade, despite its deleterious impact on the environment and the livelihoods of the indigenous peoples in the region.
Active managers must look beyond ESG ratings to add value over passive sustainable funds, says Zadig
A revamp of the Oyster Sustainable Europe fund was announced in June, with European equities specialist Zadig Asset Management being brought in to manage the portfolio.
Value investing could see a revival as economic activity picks up in the wake of the Covid-19 pandemic, as asset managers predict that lowly-rated stocks could outperform in the upturn.
Europe is poised to continue outperforming the US for the rest of the year, according to New York-based global asset manager Neuberger Berman, as uncertainty over the outcome of the US presidential election and the ongoing coronavirus pandemic continue to weigh on markets.
Impax Asset Management says there will be “winners and losers” in the economic transition to a more sustainable economy, as trends continue to be accelerated in the post-pandemic rebuilding process.
Piloting through Covid-19 requires investment committees to emulate aircraft industry in putting safety first
The investment industry needs to emulate the aircraft industry in the way it learns from past mistakes, in order to successfully pilot investors through the Covid-19 crisis, according to new research from the Thinking Ahead Institute.
Tectonic shift in UK stock market ownership as US asset management giants unleash low-cost passive investing boom
Over a third of all shares on the UK’s FTSE 100 and 250 indices are now owned by North American asset managers, as the popularity of low-cost passive index funds and ETFs has surged.
European ‘zombie’ companies have three to six months' runway before defaults rise, says Aviva Investors
Concern is growing over a likely spike in defaults among so-called ‘zombie’ companies that have stayed afloat during the coronavirus pandemic by relying on government stimulus and increasing their debt loads, but will struggle to keep servicing loans as government schemes roll back.
Breckinridge sees further tightening in US corporate debt spreads after wild bond market swings in H1
Fixed income managers have seen a hectic first half of the year in 2020. In the US, a typical year’s worth of new issues was printed in the space of just four months, as the onset of the pandemic forced companies to take urgent action to shore up their finances.
Pension funds should allocate towards infrastructure and growth assets as government bonds now provide “return-free risk”, says Baroness Altmann
Pension assets could support the UK economy in the fight against coronavirus, if they were invested in infrastructure such as social housing and environmental protection, according to Baroness Altmann, who spoke at a pensions conference this month.
BlackRock, State Street, and Vanguard block action on deforestation in shareholder votes, finds Friends of the Earth
The world’s three largest asset managers, BlackRock, Vanguard, and State Street, have either voted against or abstained from voting on all efforts to halt deforestation by shareholders of consumer brands and agribusiness companies since 2012, a new report from environmental advocacy group Friends of the Earth finds.
China’s funds market will soon be teeming with new mutual funds, as foreign money managers vie to attract capital from the country’s pool of retail investors.
Financial services sector fears impact of Financial Transaction Tax on trading, liquidity, and active management
The possible introduction of a financial transaction tax (FTT) in the US and Europe to make up for lower tax revenues resulting from the Covid-19 pandemic, is raising concern from investors and advisers, shows new data from Greenwich Associates.
Asset managers are earmarking bigger budgets for digital transformation in the coming year, after many were shocked into action by the ‘stress-test’ their existing digital systems underwent during the coronavirus pandemic.
BlackRock, JP Morgan, and Polar Capital are some of the big names among the growing roster of investment companies that have cut management fees in the first half of 2020, as the industry tries to stay attractive to investors amid uncertain markets.
Environmental, social, and governance (ESG) factors have grown more important since the onset of pandemic, with a new survey sponsored by BNP Paribas Asset Management showing the ‘social’ aspect coming into greater focus.
TISE reports highest ever new securities listings in first half as chief executive prepares to depart
More new securities were listed on The International Stock Exchange (TISE) in the first half of 2020 than in the same period of any other prior year since the exchange opened in 1998.