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 […]
A turning tide? Why contrarians are turning to China
After a shaky 12 months, foreign investors are beginning to return to China. Faced by a wall of geopolitical and macroeconomic uncertainty – a zero-Covid policy, an increase in tensions with the US, tightening regulatory scrutiny and the weakness of the Real Estate sector – investors in the world’s second largest economy have spent much […]
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. […]
Seven reasons why the time is right to buy EMD
There are two sides to every sell-off. With emerging market debt (EMD) posting its weakest H1 return since the height of the global financial crisis, investors must decide whether to approach this sell-off as a setback or a shopping spree. On the one hand, EMD is down 21.76% year to date¹, having borne the brunt […]
My bandwidth brings all the users to the yard
Over the past 20 years, in line with the proliferation of the internet, net neutrality has been a hot topic of conversation within the telecoms sector. Of late, we have found the debate has resurfaced given the growing importance of the internet to our daily lives, coupled with the ever-increasing levels of investment required for […]
A source of alpha and solution to supply-chain logjams?
Short-term loans to facilitate physical cross-border transactions can reconcile the divergent needs of an exporter and importer. Trade finance has a critical role to play in addressing snags in global supply chains and ensuring that vital commodities continue to flow. China is heavily reliant on soybeans, which are used as protein feed for hogs and […]
Fiorino: Is there light at the end of the AT1 tunnel?
Novel bank capital instruments introduced as loss-buffers in the wake of the global financial crisis (GFC) may have hit a wall as European regulators contemplate new ways to shore-up the monetary system. Indeed, proposals flagged by the European Central Bank (ECB) this April could push the much-misunderstood Additional Tier 1 (AT1) securities – established as […]
Global Emerging Markets, H2 2022
Outlook
