Taking action now with a view to future benefits – for example, saving for our own retirement or seeking a sustainable world for all – can seem less appealing than working for immediate gains. We appear to be wired that way. So in this edition, a timely reminder that global warming cannot be contained if we wait for others, governments included, to act. We also explore shareholder/investor engagement in Asia Pacific as part of our video mini-series on stewardship. Finally, while indeed it is best to strike while the iron is hot, we argue that an allocation to equities can wait until things have cooled off.
Global warming will not be capped at 1.5C if we wait for governments to act. So, there is a clear need to ensure that investments contribute to attaining the climate goals.
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Stewardship is about safeguarding the long-term investment interests of clients, improving company performance, shaping beneficial polices, and the greater good.
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Lower investment risks and an improved outlook have allowed markets to chalk up gains recently. But… do not chase risky assets such as equities aggressively now.
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Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.