Search this website. You can use fund codes to locate specific funds

Authors

  • November 26, 2018
    Equities
    Is online shopping still in its prime?
    In a few short years, Black Friday and Cyber Monday have been ingrained in the European retail calendar with outlets publicising their deals days or even weeks in advance. Gone are the days of hordes of consumers queuing outside shopping centres at 4am in a desperate bid to have their first pick of the sales with only a quarter of all Black Friday spending expected to take place in stores1. The queues have instead moved online, swapping the fresh air and elbowing for a comfortable chair, broadband connection and a few clicks of a mouse. With fears of oversaturation, Chi Chan, European Equities Portfolio Manager, asks whether the online market is still in its prime and identifies three companies involved in the online revolution.
  • August 29, 2018
    Equities
    Unearthing growth opportunities
    Investor action on climate change will be a key focus at this year’s PRI conference, which for the first time, will run alongside the Global Climate Action Summit. Climate change is one of the highest priority ESG issues facing investors and the push to reduce carbon emissions is well underway. However, technological innovation is needed if we are going to meet the carbon emissions reduction targets set out by the 2015 Paris Agreement. In his latest note, Chi Chan, Portfolio Manager at Hermes Investment Management, explains how one company, Advanced Metallurgical Group (AMG) is playing its part in enabling a low carbon future. In 2015, national governments, private sector companies and local authorities across the world pledged to reduce carbon emissions as part of the Paris Climate Agreement. And although progress has been made – CO2 emissions have remained stable since 2014 – there is still a long way to go. According to the United Nations, adopting new technologies in key sectors, such as energy, agriculture, industry, transport, buildings and forestry, could reduce emissions by up to 36 gigatonnes per year by 2030. Our current holding AMG produces critical components for technologies that tackle CO2 reduction. Enabling a low carbon future Dutch-domiciled AMG is a global critical materials company that produces high value-add speciality metals. AMG’s development of products and processes to reduce emissions and improve fuel efficiency excites us greatly. That’s because technological progress enabling greater reductions in CO2 emissions is one of the main drivers of growth in the automotive, energy and manufacturing industries.
  • August 13, 2018
    Equities
    AMG: Unearthing growth opportunities
    The push to reduce carbon emissions is well underway. But to meet the 2030 target set out at the 2015 Paris Agreement, technological innovation is needed. Here we explain how Advanced Metallurgical Group is playing its part in enabling a low carbon future. In 2015, national governments, private sector companies and local authorities across the world pledged to reduce carbon emissions as part of the Paris Climate Agreement. And although progress has been made – CO2 emissions have remained stable since 2014[footnote]“The Emissions Gap Report 2017,” published by UN Environment in November 2017.[/footnote] – there is still a long way to go. According to the United Nations, adopting new technologies in key sectors, such as energy, agriculture, industry, transport, buildings and forestry, could reduce emissions by up to 36 gigatonnes per year by 2030 “The Emissions Gap Report 2017,” published by UN Environment in November 2017. Our current holding Advanced Metallurgical Group (AMG) produces critical components for technologies that tackle CO2 reduction.
  • July 13, 2017
    Equities
    Shop around for innovative opportunities at affordable valuations
    While the technology sector offers compelling potential for growth, expensive valuations tend to reduce the number of attractive entry points for investors. However, with technology now permeating almost every aspect of our lives and revolutionising behaviours, investors can find innovative companies with strong growth propositions at reasonable valuations just beyond the tech sector, claims Chi Chan, European Equities Portfolio Manager, Hermes Investment Management. One such area to consider is retail; in Europe, 53% of consumers bought something online in the year to June 2016, even higher in the UK at 81%. With this growing demand, the market is adapting and those businesses that are most effectively evolving their product offering and user experience are capturing increasing market share. Here, we identify three companies that we believe are poised to succeed in what we think will be a “winner takes most” market.
  • June 27, 2017
    Equities
    Adidas - A manifesto for investor returns
    Between luxury and mass-market, there is a segment that marketers call “masstige” –prestige for the mass market – which is defined as “premium but attainable” according to Chi Chan and Martin Todd, European Equities Portfolio Managers at Hermes Investment Management. This usually refers to a dilution of a high-end brand (think of the diffusion lines like Armani Exchange for Armani or Miu Miu for Prada), but it can also be the upscaling of a mass market category.
  • February 24, 2017
    Equities
    Unearthing Europe’s hidden disruptors
    Famous ‘blue-sky’, pre-profit stocks may excite investors, but they also pose significant challenges. With extraordinary price-to-earnings multiples unsupported by cash flows, the appeal of these disruptors can be tempered by their financial viability. It is worth remembering that not all innovators make headlines, and here we profile two companies capitalising on long-term change in their respective industries. The lure of ‘the next big thing’ is understandable. Visionary companies like Tesla have the potential to generate enormous returns if they can harness and monetise innovative ideas. However, these stocks also carry considerable risks. Their value is often intangible and unsupported by near-term earnings, accompanied by dizzying price-to-earning (P/E) multiples. Investors’ holdings may also be diluted in further rounds of fundraising. On the other hand, stocks in apparently dull industries have the potential to shine over the long term. While their industries may not epitomise the technological zeitgeist, they can still be disruptive. Finding the businesses that are responding innovatively to challenges such as the globalisation of supply chains and the demands of e-commerce can provide ample rewards for investors.
  • December 12, 2016
    Equities
    Why boring can be beautiful for long-term investors
    The lure of exciting ‘blue-sky’ stocks is understandable. Visionary companies like Tesla have the potential to generate enormous returns, if they can harness and monetise innovative ideas. Unfortunately, these types of stocks also carry considerable risks. Value is often intangible and unsupported by near-term earnings, while P/E multiples can be dizzying. Furthermore, investors may face stock dilution in the event of further rounds of fundraising, says Chi Chan, European Equities Portfolio Manager at Hermes Investment Management.