Share-owner stewardship in the UK, and SA by comparison

The South African investor community needs to take note of developments in the UK, and more specifically note the oversight role being played by the UK Financial Conduct Authority (“FCA”). The UK investment market has changed significantly since the publication of the first UK Stewardship Code in 2011. Asset owners and asset managers cannot delegate […]

US active funds suffer record $143bn ‘exodus’ in December

Actively managed investment funds in the US experienced a record $143bn “exodus” in December, according to data, with many nervous investors flooding into cheaper passive funds. Heaviest monthly outflows in 10 years as investors seek shelter in passive vehicles. The shift mirrors experiences among UK active funds, which suffered consecutive months of outflows throughout 2018 […]

Virtuous Investing Finally Starts to Pay Off

For investors trying to take into account environmental, social and governance concerns, the best response seems to have been to adopt a version of St. Augustine’s prayer: “Oh Lord, make my strategy pure, but not too quickly.” For whenever the issue of socially responsible stock-picking arises, so too does the suspicion that doing good comes […]

Banks Get Stress Tested. So Should Asset Managers.

In the decade since the financial crisis, the banking industry has been subjected to regular stress tests designed to prevent finance from ever again trashing the global economy. But the asset management industry has escaped similar scrutiny. That may be about to change — in Europe, at least.  Recent industry trends have heightened the need […]

Throwing Retirees’ Money Into the Sea

Pensioners shouldn’t be funding big and untested renewable energy projects. They should be an ideal investment for a pension fund. Renewable energy infrastructure projects are typically long-dated, environmentally friendly, and offer returns that are uncorrelated with the gyrations of financial markets. But the potential rewards have to be commensurate with the risks — and pension […]

Inverted Yield Curve Is Hiding in Plain Sight

Pray for the global economy. For much of the past year or so, investors and economists have anxiously watched the relentless shrinkage of the gap between short- and long-term U.S. bond yields to the narrowest levels since 2007. After all, an inversion —  when long-term yields fall below short term ones — preceded each of […]