Old Mutual launches ESG rating system for unit trust funds
WORDS ON WEALTH:
ESG Investing â focusing on environmental, social and governance criteria â is gaining momentum worldwide, with huge implications for how companies, and even governments, operate.
As I have mentioned before in writing on ESG, the movement is especially strong among younger investors, who tend to blame their parentsâ generation for global warming, environmental destruction and the alarming rise of inequality in developed nations.
Over and above the moral incentive, there is convincing evidence that investing in sustainable, environmentally friendly, socially responsible companies gives you better long-term returns than investing in companies that have low ESG scores.
Immediate reaction to the government’s Budget plans to dig South Africa out of its fiscal hole were positive, with bonds, the rand and equities gaining ground in response to the National Treasury’s precarious balancing act. It gave some tax relief while laying out stringent plans to contain expenses.
However, reality has since set in, with the 10-year government bond losing further ground to 8.99%, a 44.5 basis point increase in yields over the past month, and the rand weakening past the R15 to the dollar level. Contributing to these moves was the rally in the world’s benchmark interest rate, 10-year US Treasury yields, at the start of a new month, with investors finally responding to US Fed chair Jerome Powell’s attempts to calm investors last week.
Magnus Heystek: What ever happened to Ramaphoria?
Magnus Heystek, one of South Africa’s best independent financial advisors, gives his thoughts on the fundamentals underpinning South Africa as an investment destination. Since Cyril Ramaphosa came into power at the beginning of 2018, there was fresh optimism that a change in leadership would shepherd improved economic and structural reforms in order for South Africa to flourish. However, the economy hasn’t managed to reboot itself under Ramaphosa’s leadership and the euphoria of a few years ago has long diminished. Magnus, who is outspoken in his views regarding South Africa, has been one of the most successful financial advisors as a result of his bearish viewpoint on South Africa and bullish sentiment regarding offshore equities. He berates local fund managers, whose performance over the last 7 years has been abysmal given the under performance of the local bourse. These fund managers used to lambast Magnus for his opinions o