The spoils of the pandemic: in this together?
The annual publication of the Forbes rich list has become a much-followed media ritual, however, in 2022, the unveiling of the list served as a stark reminder – for those who cared to see it – of the asymmetrical impact of the pandemic. The world’s 10 richest men more than doubled their fortunes during the […]
ESG Materiality, Q3 2022
Supply chain scrutiny puts spotlight on workers’ rights
Pursuing alpha: Why invest in EMD?
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Global Equity ESG Fund, H1 Report 2022
The first half of 2022 saw an extremely challenging environment for investors, with markets battered by multiple headwinds. Rising inflation and slowing growth were exacerbated by the impact of the conflict in Ukraine, while consumer confidence fell as interest rates rose. The rise in inflationary pressures and more hawkish central bank policy triggered a pivot […]
Goodbye share buybacks, hello bond buybacks
As investors consider surging corporate debt costs since the beginning of the year, equity as a funding tool is now starting to look comparatively cheap. In fact, the relative cost of equity for shareholders (as defined by the dividend yield) over the cost of debt is the cheapest it has been since 2012 (see figure […]
Case study: Akbank
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Equitorial: What price risk?
Fast reading: Understanding underlying factor exposures is a crucial tool of portfolio management, particularly during periods of extreme volatility. The Federated Hermes proprietorial MultiFRAME risk model, developed by the Global Equities team, can provide insight into approximately 400 risk factors and their impact on portfolio concentration risk. Growth versus value, rising oil and commodity prices […]
The biodiversity domino effect
The common goods of nature There is growing awareness in the financial sector of the interlinked climate and biodiversity emergencies, and the potential impacts on economies and markets. Research suggests over 50% of global GDP is highly or moderately dependent on nature¹. Failure to act on these issues could result in collapsing food systems and […]
AMN Healthcare: Engagement commentary
The aging population in the US is putting a strain on the healthcare system and the problem is exacerbated by a structural shortage of nurses and doctors. Among the issues that underpin the shortage of medical staff is a lack of diversity and pay inequity and AMN has been exploring initiatives to redress these issues […]
Despite headwinds, ESG continues to perform
Fast reading: Despite market volatility and the energy crunch, ESG continues to be an effective performance indicator, with ‘E’ joining ‘S’ and ‘G’ as a driver of outperformance. The Real Estate and Energy sectors are troubling exceptions to the rule, with companies displaying the worst or worsening environmental practices relative to peers tending to outperform. […]
