Previsioni ed analisi

We believe there is an increasingly clear relationship between companies’ approaches to managing ESG risks and the long-term sustainability of their dividend distributions. Paul Middleton, Portfolio Manager on Mirabaud’s Sustainable Global High Dividend Fund, explores this relationship.

Mirabaud’s Anu Narula takes stock after an unusual summer for equity markets.

2021 has seen an uptick in the Chinese government making market-moving political interventions. Are these the symptoms of an overconfident regime, or is the Communist Party laying the foundations for a decade of continued growth – and what does this mean for emerging market bond funds?

Rain in London in August, wildfires in Greece and Italy, floods in Bangladesh: can anyone still really deny that global warming is at a crisis point? The role of human influence on the climate system is undisputed. That’s the stark message from the IPCC report on climate change published earlier this week.

Examining how Mirabaud Asset Management’s Climate Bond team evaluates bond issuers’ climate policies

We asked our investment collective for their views on longer-term inflationary risks. What’s clear is that this environment will most likely suit nimble investors that can make active, high conviction decisions as they navigate the road ahead.

We believe that blended Emerging Market debt strategies offer distinct advantages in finding a balance between opportunity, liquidity and volatility. Furthermore, our approach towards liquidity has given us the flexibility to be highly nimble in positioning the Fund quickly and effectively if market events change.

The Global Climate Bond team use a framework to identify those issuers that have clear goals in reducing their greenhouse gas emissions in line with the targets set out in the Paris Agreement. Our focus is to seek issuers that can make significant reductions to the emissions they produce, which means we invest in some of the higher-emitting sectors. Engagement then becomes key.

Andrew Lake, Head of Fixed Income, focuses on the moves in the US Treasury market

We have reached the halfway point of 2021, and it is a good time to take stock of where we are and where we might be going. As the recently departed Donald Rumsfeld said “there are known unknowns and also unknown unknowns”.

The Mirabaud Convertible Bonds Europe Fund has a fully integrated ESG approach as part of its process. It has recently been awarded the SRI label by the French Ministry of Finance. Despite some recent headwinds, especially in areas like the ‘stay at home’ names, a number of positive factors still remain to make the European Convertibles asset class an opportunity for investors seeking to diversify risk.

Global greenhouse gas emissions continued to grow for the third consecutive year in 2019, reaching a record high of 52.4 GtCO2e[1]

Investors are increasingly looking to support global climate action through their bond allocations, but there are several routes to choose - green bonds, hybrid climate portfolios or pure traditional bond strategies.

“We must now agree on a binding review mechanism under international law, so that this century can credibly be called a century of decarbonisation” – Angela Merkel

The energy transition is the pathway towards transformation from fossil-based to renewable, zero-carbon energy sources in order to meet the 2015 Paris Agreement and Government targets by 2050. At its heart is the need to reduce energy-related CO2 emissions to limit climate change.

Dan Moreno, Head of Emerging Market Debt, provides latest insight into the market environment and positioning of the Mirabaud – Global Emerging Market Bond strategy, which takes a blended approach between hard and local currency bonds.

We believe that Income investors need to focus as much on Dividend Growth as they do on Dividend yields, as the combination of the two determine what total income will be paid out over time. Durability of dividend growth is supported by our multi thematic approach.

Nicolas Cremieux outlines recent positioning activity for the Mirabaud – Sustainable Convertibles Global Fund.

David Kneale looks at the possible impact of inflation on UK PLC. UK consumer price inflation has recently risen to 1.5% from around 0.5%[1].

It has been a while since my last missive. I must admit, I left it for a few weeks, hoping that there would be some eventful news to comment on. The logical move would have been for investors to take profits after a very strong Q1, feeling full of self-congratulation that the market was over-extended, in bubble territory and due a nice pullback.