Five questions answered on… Asian equities

Q: Why should investors consider Asia as part of their overall portfolio? A: Asia makes up a huge part of the world, with two billion people in China and India alone. At the same time it’s diverse, comprising different sub-markets each with their own characteristics. The thing about investing in Asia is there’s inevitably one […]

Animal farming and ESG: a sector where some are more equal than others

The animal farming industry entered the pandemic widely regarded as an ESG laggard: a sector noted for its high greenhouse gas emissions, unethical treatment of livestock, and intensive land and water use, and a leading global cause of deforestation. The Farm Animal Investment Risk and Return (FAIRR) initiative found the industry has done ‘too little […]

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 […]