Responsible investing has become a focus area in the investment industry, but greenwashing is rife and the sales pitch is strong, so what really matters? Research IP helps many of our consulting clients navigate the maze, but no one client is the same. The monthly RIPPL Sluice provides some examples of responsible investment in action.
Research IP brings you the RIPPL Sluice to provide examples of responsible investment in action every month.
Fund Managers are a very important part of the part of the investment landscape. Pension funding systems around the world heavily invest via fund managers, be they internal or externally appointed. Most Australian and Kiwi investors have exposure to a managed fund (also known as a mutual fund) via superannuation and KiwiSaver accounts. For Australians the predominant structure is an Australian Unit Trust (AUT) and for Kiwi’s this is via Portfolio Investment Entities (PIE). Most funds held within pension systems are diversified funds, largely because they are a default fund for the scheme provider.
Typically fund managers make decision based around the next 3-5 years. Looking at where employment will trend provides some insights into where capital may flow, which can highlight value traps. After all, jobs growth is linked to the need for capital investment to support revenue growth. The change in jobs growth can also highlight where efficiencies or structural changes are occurring then can improve profit growth.
To misquote Shakespeare – Bubble, bubble toil and trouble? Has Research IP turned its focus to the housing sector? Perception is everything.
What apps or websites use the most data? How many stories do you post on Instagram or Facebook? How much money have you spent shopping online in the past year?
We live in an extraordinary time for the global economy. Despite supply chain and workforce issues, a commodities boom and rising energy costs, the US Federal Reserve and European Central bank are keeping low interest rates frozen. But with the inflation spectre looming on the horizon, former US Federal Reserve Governor Kevin Warsh says the window of opportunity for central banks to act may already be closing.
Omicron and zero-covid policies through China and South East Asia have the potential to disrupt global supply chains, heightening the risk of sustained inflation and therefore downside risks to financial markets.
Do you feel good about 2022? What is it going to bring? The early pacesetter is the Omicron variant of COVID-19, ripping up the charts, in a not so positive way, but the world continues its march forward. Aspirational goals and settings have been made.
Tech and financials dominate, but does a passive product meet your needs and objectives.