There is no single and correct way for a company to adopt good ESG practices, but it’s clear that major institutional investors are increasingly judging companies by ESG criteria.
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Modelling different and complex objectives in an asset allocation is difficult because the goals are often contradictory, but a new technique puts a risk score on each possible strategy.
Two tenets of a successful investment philosophy: risk is the permanent loss of capital, and never succumb to either irrational exuberance or unjustified gloom. It takes discipline and strict adherence.
Contrary to historical norms, Australian sovereign bond yields are trading below those in the US. What are the implications for hedging and returns from bonds and will the differential be sustained?
Mental Health Commissioner, Lucy Brogden calls on financial industry professionals to better address their clients’ needs for advice that supports both financial and mental health.
Companies ranked 51st to 100th by ASX capitalisation are in the mid-cap sector. They have better historic returns, industry diversity, insider ownership, and growth prospects than the S&P/ASX50.
Sticking to a long-term ‘set and forget’ asset allocation plan forgets those close to or in the retirement phase. Further, we are at a point where prospective returns in all markets are lower.
Impact investing is moving out of the fringe and into mainstream investing, and the trend is supported by millennials who will soon benefit from a massive wealth transfer.
We tend to overlook the older technology companies as we marvel at the likes of Facebook and Google, but technology evangelism has paid off over the long term.
With a high rate of adoption of the internet globally and the large growth in cloud computing, network-dense data centres are well placed to generate long-term returns.
Urban growth poses many challenges. The way we live and interact as a society, especially in growing cities, will continue to evolve including the way we shop, how we move around and how land is redeveloped.
Infrastructure assets are viewed as ‘bond proxies’ because they are supposed to have predictable cash flows, but investors should delve deeper into the regulatory risks, especially in a post-Brexit, post-Trump world.
Renewable energy production is growing due to technology driving significant cost reductions and improvements in energy efficiency. Carbon reduction targets, tax schemes and our social conscience also help.
There are plenty of innovative companies out there, but sustained success needs barriers to entry, strong distribution, marketing and research budget and product differentiation.