Columns

Three Brexit scenarios and their impact on financial markets

23/10/2018 Pieter Jansen

Although it was set out that last week would have to be the week in which the EU and the UK would agree on the transitionary deal to leave enough time to arrange a smooth transition, this did not happen. Over the last weeks it had already become clear that a deal to be reached in October had become quite unlikely. There is significant pressure for a deal to be reached and to be approved by UK parliament before the end of the year. One of the key difficulties is the issue of the border with Ireland. The good Friday agreement rules out a hard border between Ireland and Northern Ireland. As Northern Ireland is part of the UK, the Irish-North Irish border would be an external border between the UK and the EU.

China responds

06/08/2018 Maarten-Jan Bakkum

While concerns about US protectionism have increased and investors are trimming back their growth expectations for emerging markets, China has not sat idle. Beijing is doing everything possible to limit any damage to the Chinese export sector, by not unnecessarily escalating the conflict with the US and where possible, by intensifying trade relations with Europe and other countries. At the same time - and this is particularly relevant for investors in emerging markets - Beijing has begun to take measures to fuel its domestic economy. In times of increasing risks to world trade growth, China always tries to strengthen domestic demand to offset external headwinds – and that is no different now.

Contrast

16/05/2018 Maarten-Jan Bakkum

While the whole world seems to be keen to invest in Vietnam, interest in Indonesia has cooled down considerably in recent years. Vietnam’s success story is based on privatizations, better protection of intellectual property and clear policy choices aimed at a rapid development of the export sector. In Indonesia, almost the opposite is happening: the government is becoming increasingly populistic to support the consumer, at the expense of business’s competitiveness. The big export companies stay away or leave for other Asian countries, and preferably Vietnam.

The greening of Asian fixed income

05/04/2018 Joyce Tan

China is well known for its cultural wonders, such as the Great Wall of China, and also for the breakneck speed at which it has managed to modernise. Unfortunately, the country is also notorious for its grey skyline that is often clouded by pollution and fumes. Long-term smog exposure has slashed life expectancy in northern China by more than three years compared with the south, according to a new research at the University of Chicago[1].

An exciting 2018

22/12/2017 Maarten-Jan Bakkum

Will 2018 be the third year in a row in which emerging equity markets outperform developed markets? Probably yes. Growth prospects are adequate and risks seem manageable. The main theme is an accelerating credit growth almost everywhere in the emerging world, so that both consumption and investments are on the rise after years of contraction. Risks are always there, but they now seem to be mainly country-specific and therefore not insurmountable for the emerging world as a whole.

Rise to the Occasion

21/12/2017 Johan Vanderlugt

I have noticed that many investors struggle with ESG data and how to apply it in their investment processes. In fact, a growing group believes that ESG issues are not material and have no added value[1]. What's going on?

Promoting sustainability in emerging markets

07/12/2017 Faryda Lindeman

The 2013 Rana Plaza collapse in Bangladesh, which killed more than a thousand people and is considered the deadliest garment-factory incident in history, served as a warning to clothing producers about supply chain management issues. Similarly, the severe environmental impact of palm oil production has given many global food producers a wake-up call about supply chain management. These events remind us that environmental, social and governance (ESG) standards in emerging markets are in need of improvement, as a big part of the global supply chain is based there.

The missing link

03/11/2017 Faryda Lindeman

Responsible investment is booming, and integration of environmental, social and governance (ESG) criteria continue to gain momentum amongst investors. They have also triggered progress at index and research providers, who have developed sustainability indexes and research capabilities around ESG. At the same time, we see a trend emerging in which investors are focussing on negative screening or best in class and they’re solely looking at ESG ratings. In our view, an investment decision is not just looking at numbers and scores, it is about understanding what the risks and opportunities are of a particular investment.

Practice what you preach and be rewarded

19/10/2017 Faryda Lindeman

Institutional investors have a fiduciary duty to act in the long-term interests of their clients. Environmental, social and governance (ESG) factors are relevant in this context, according to the Principles for Responsible Investment (PRI). Since the launch of the PRI in 2006, investors have devoted a significant amount of time integrating ESG factors into their investment decisions. For institutional investors formal ESG integration policies have become indispensable. Nevertheless, the mere existence of such a policy is not a reliable indicator of an investor’s real commitment to sustainability. Actual practices with respect to ESG incorporation vary greatly, ranging from negative screening to the full integration of ESG risks and opportunities.

The 'S' for 'Social': moving to an Age of Wisdom

05/10/2017 Adrie Heinsbroek

A true entrepreneur isn’t driven solely by the desire to make money. People with real business vision who start companies do so because they want to provide solutions or create something new. They also want to be able to earn a living, of course, but the key to growing a company or organisation is providing products, services and solutions that fulfill a need, which could be a contribution to the greater good. In that sense, business enterprises fill a social function. If so, what is it that makes an entrepreneur ‘social’?