Freedom has its own style

ESG factors have long been viewed as risk factors to manage. Giles Parkinson explores the flipside of this proposition, contending that positive externalities are an under-leveraged investment opportunity.

In the first of a new monthly series, we take a visual approach to illustrate topical data themes in economies, markets and beyond. This month we look at the correlation between stock market performance and vaccinations, the illiquidity premium in real assets, and whether there are still more men called Dave running funds than female managers.

Massive intervention by central banks and governments in recent years has left investors struggling to value financial assets.

The coronavirus pandemic has spurred companies to upgrade their digital capabilities, boosting productivity and creating investment opportunities in previously overlooked niches.

More countries are contemplating their visions for a lower carbon world. Norway has excluded fossil fuels entirely for heating buildings, while others are taking a more nuanced approach. So, what are the options for those with environment at the heart of their agenda?

The inexorable rise in asset prices caused by the seemingly never-ending era of monetary easing is calling into question long-held investment beliefs, as members of our multi-asset & macro and equities teams explain.

Big challenges bring us the opportunity to think differently. Our investment teams reveal what they have learnt from COVID-19, and how they are preparing to face whatever ‘normal’ emerges in a post-pandemic world.

To gain an accurate picture of a company’s long-term prospects, investors must pay close attention to the details, says Giles Parkinson.

With concentration increasing in major emerging market indices, small cap companies can offer investors welcome diversification, says Will Ballard.

Droughts and water shortages used to be associated with the world’s poorest countries. Now middle-income economies are suffering the effects of extreme weather too, with significant implications for investors, says Will Ballard.

Commercial and geopolitical forces are threatening to fracture the internet. In this episode of the AIQ podcast, we explore the implications for investors.

In late 2020, Chinese authorities announced an antitrust investigation into e-commerce giant Alibaba and halted the IPO of its financial services affiliate, Ant Group. Alistair Way looks at the implications for investors in Chinese tech.

In these data visualisations, we look at whether COVID-19 will achieve something that millions spent on public health campaigning has failed to do.

Commercial and geopolitical forces are threatening to fracture the internet into competing regimes, making it harder for companies to operate across borders and potentially limiting their growth. We explore the implications for investors.

Over recent years, a group of established companies have traded at relatively high valuations for their robust competitive advantages and consistent growth records. But in a competitive economy, investors should not assume this will continue indefinitely, warns Giles Parkinson.

As part of our engagement efforts, every January we send a letter to the chairs of companies we invest in (and some we don’t, but still want to use our influence with) to set out our stewardship priorities for the year. Here, in full, is our 2021 letter.