The past three months have been an extraordinary period for all of us, with ramifications that go far beyond investment markets. The sheer scale of what has happened in recent weeks is staggering, from unemployment claims in the US to mass furloughing in the UK, the hundreds of billions of pounds pledged by the chancellor to bolster the economy, and the trillions of dollars of US Federal Reserve support.
Stewart Investors, which manages the Pacific Assets (PAC) trust, has long been a supporter of a little-known, Edinburgh-based charity called The Library of Mistakes. Its mission is that “by studying financial history we hope to improve financial understanding one mistake at a time”. This thinking also informs the trust’s investment style. Managers David Gait and Doug Ledingham believe that only by understanding the history of individual companies and their management teams can they avoid the pitfalls.
IFAs have seen a sharp rise in the number of investors wanting to put their money to work for environmental and social good since the start of the Covid-19 pandemic.
Federated Hermes conducted a poll of 200 UK IFAs and found that 85% have seen a rise in client requests to allocate more money to ESG funds.
Since the 1970s, there have been four periods during which global equities have fallen more than 10% in five days; the 1987 crash, the 2008 global financial crisis, the 2011 eurozone crisis, and the first few months of 2020.
Each of these events has occurred in very different circumstances and brought its own specific challenges. The bear market of early 2020 is no exception, with a severe downturn caused by an emerging understanding of the economic consequences arising from the coronavirus.
ESG (Environmental Social Governance) investing has experienced notable momentum in recent months, with companies that boast good ESG characteristics now trading on sizeable premiums to the wider market.
Host Kyle Caldwell, deputy editor of Money Observer, is joined by editor Faith Glasgow in a discussion of the latest news for fund investors, including figures on the dividend drought, and fund manager Terry Smith’s verdict on the March market sell-off.
BlackRock chief executive officer Larry Fink signed two letters at the start of the year that signalled a tipping point for sustainable investing. In his annual letters to clients, the head of the world’s largest asset manager said his firm would divest from thermal coal and put sustainability at the heart of its investment decisions.
Money Observer Rated Funds: winners, losers and key takeaways from the market sell-off in the first quarter of 2020
Plenty of column inches in financial history textbooks will in years to come be dedicated to the first quarter of 2020, a period that saw global stock markets record steep falls as a deadly disease no one had heard of until the start of this year claimed thousands of lives worldwide.
In the last few weeks, stock markets around the world have been in free-fall, and where they go next nobody really knows. Of course, there are some who say they do, but now is the time to choose your “expert” media inputs very carefully.
Welcome to our first update of 2020 for the Money Observer ethical portfolio. A great deal has changed since our last piece – not only does Prime Minister Boris Johnson now command a substantial parliamentary majority, but the UK has also now left the European Union. How has this impacted our investment selections over the past three months?