Adoption of environment, social and governance (ESG) measures in a fund relies on trust in the reporting from the companies, and disclosure and transparency remain a major challenge, according to David Li, senior portfolio manager at Impax Asset Management.
Market volatility gives wealth managers a valuable opportunity to gauge their clients’ true risk appetite, according to Kevin Liem, chief investment officer at CBH Asia.
Investors should stay away from what they perceive as “safe sectors”, such as consumer staples and telecommunications, as they have accumulated more debt, according to Shaniel Ramjee, London-based senior investment manager for multi-asset at Pictet Asset Management.
Among the opportunities in emerging markets this year, theme investing, as well as China deserve a closer look, according to Rob Marshall-Lee, investment leader in the emerging and Asian equity team at BNY Mellon-owned boutique Newton Investment Management.
Investors in China’s technology sector should look beyond the flagship giants Baidu, Alibaba and Tencent, argues William Fong, director for Hong Kong China equities at Barings.
While ESG has become an inherent part of risk management, SRI (socially responsible investment) products are, by comparison, designed to meet the demand of specific investors, Aberdeen Standard’s William Scholes told FSA.
Tapping into the growing consumer demand opportunities in Asia means high exposure to Greater China, but requires caution around high concentration in top stocks, said Invesco’s William Yuen.
Bluebay built an ESG version of its existing high yield fund and found that screening in a high yield bond fund requires reliance on in-house ESG analysis rather than external providers, according to My-Linh Ngo, head of ESG investment risk at Bluebay Asset Management.
China will see a stronger renminbi and a looser money supply in 2018, as the authorities’ agenda aimed at curbing domestic leverage evolves, argues Gregory Suen, investment director for Asian fixed income at HSBC Global Asset Management.
Natural resources-related equities will be largely supported by stable demand and improvements in business models, argues Tom Nelson, head of commodities and resources at Investec Asset Management.
Part of the Mark Allen Group.
