Tag: Environmental Social Governance (ESG)

The macro environment has been deteriorating over the past few years and this has been exacerbated by the COVID-19 crisis. As a result, the credit market has been characterised by deteriorating credit quality and credit spreads. The key credit cycle indicators that we look at confirms this market phenomena.

As increasingly more investors begin to question the purpose and impact of their investments, beyond a singular focus on return, unlisted alternative assets have demonstrated how supporting environmental, social, and corporate governance (ESG) principles can generate solid returns for investors, while also having a tangible, positive and lasting impact.

Diversity and innovation will be key in the future of asset managers in South Africa as the client base evolves to more multicultural and multifaceted millennials. In South Africa, millennials represent the largest generation to enter the workforce – more than 50% of the workforce in 2020, and 75% by 2030.

What does the economic downturn mean for the asset management sector and how should we respond? The asset management industry is facing uncharted territory as it grapples with the impact of COVID-19 on business models and the challenge of integrating technology into their existing business models.

Amongst the global elites attending the World Economic Forum (WEF) at Davos, financial companies represent the biggest single industry attendance, which makes it clear that it’s all about the political power of money. Power, politics and finance in today’s economic systems go hand in hand. 

Environmental, social and governance (ESG) matters rapidly rose up the corporate agenda in 2019, such that ESG is now a mainstream issue across all areas of corporate life, including in mergers and acquisitions (M&A). Our M&A in 2020: The New Normal report takes a closer look at this key trend that has come to the fore in the past 12 months due to increased awareness of climate change, unease with globalisation, and pressure from activists and consumers.

Investors’ appetite across the globe for exchange-traded funds (ETFs) was strong in 2019 and shows little sign of slowing. I share some of the themes and trends that I see ahead in 2020. The tailwind for ETFs going into not only a new year but a new decade couldn’t be stronger. Last year, global ETF assets under management (AUM) surpassed US$6 trillion, and in Europe we broke US$1 trillion in AUM.1 

Around the world, shareholder activism is proving a disruptive force in the corporate sphere. While activist investors driving personal agendas are a cause of alarm for many Board members, it’s the environmental, social and governance activists (ESG) that are creating the greatest impact.

Governing bodies, and the role they play, are under the spotlight like never before. How should members of governing bodies ensure that they are covering all the bases?

Investors want more credible and relevant non-financial information from companies to make informed decisions.