Chinese Growth Concerns Weigh Heavy on Metals

Industrial metals hit multi-year highs last month with the S&P GSCI Industrial Metals Index up off its bottom nearly 60%.  This was mainly due to strong Chinese demand growth and a falling US dollar.  While the dollar has continued its fall in September, there is some concern over slowing growth in China.  On average, returns Read more […]

Playing catch-up: Investors lag behind corporations in adopting sustainability principles

When I was a teenager growing up in Basel, I witnessed first-hand one of the events that put sustainability thinking on the agendas of the corporate landscape. On November 1, 1986, I was woken up by loud sirens. A disastrous fire had broken out at a chemical plant warehouse. Over 1,000 tons of agrochemical product Read more […]

Carbon Exposure of Smart Beta Indices

Carbon emission awareness has been gaining greater prominence on many market participants’ radar as they continue to seek and demand carbon emission information and related risks for companies associated with climate change.  To address this need, the Financial Stability Board taskforce recently published a series of recommendations on how companies should report climate-related risks and Read more […]

DJSI – A temperature gauge for Sustainability Investing

On September 7, the review of the renowned Dow Jones Sustainability Index (DJSI) series will be announced. Now in its 19th year, the index family continues to be the gold standard of large cap ESG performance, and serves as an effective engagement platform for investors who want to encourage companies to improve their corporate sustainability Read more […]

Promoting ETFs – The CPSE Story

The recent announcement by the Indian Finance Minister about the new Central Public Sector Enterprise (CPSE) ETF created waves of excitement and anticipation in the market and among market participants.  In order to understand and dig deeper into what this new ETF means for the Indian markets, it would be good to understand the background Read more […]

Metals Never Had An August This Hot

In August, the Dow Jones Commodity Index Total Return gained 0.7%, reducing its year-to-date loss to -1.4%, and the S&P GSCI Total Return lost 0.8%, increasing its year-to-date loss to -6.9%.  Industrial metals and precious metals were the only positive sectors, up 8.6% and 4.0%, respectively, while agriculture was the worst performing sector, losing 7.4%, Read more […]

Knowing Your Geographic Revenue Exposure: Lessons From Brexit

The so-called “Brexit” referendum result in the UK on June 23, 2016, came as a shock to financial markets, with the S&P United Kingdom LargeMidCap (GBP) falling by over 3% the following day.  As the political and economic outlook became uncertain, the British pound sterling had steep declines against other major currencies including the U.S. Read more […]

Asian Fixed Income: Two Growth Segments in China’s Bond Market

China’s bond market continued to expand in 2017.  The local currency bond market, as tracked by the S&P China Bond Index, grew over 19% in the past year.  As of June 30, 2017, the S&P China Bond Index tracked 9,342 bonds with a market value of CNY 51 billion.  Two segments that recorded robust growth Read more […]

Don’t Confuse Income With Yield

Yield conventions differ for stocks and bonds, but the various calculation methods for both asset classes have an important characteristic in common—they are alternative expressions of price.  Measures of yield specifically relate current price to how much dividend or interest income holders of a particular security are likely to get.  Thinking of yield as income Read more […]

Potential Risks When Constructing a Sustainable Lifetime Income

In retirement, financial ruin is taken to mean when one’s savings have been depleted before one passes away.  If one’s savings are invested in a diversified portfolio, financial ruin is taken to mean the combined effects of withdrawals and adverse market conditions that can potentially deplete the portfolio before one’s passing. Financial ruin to one’s Read more […]