Gautier Despret, Head of Private Debt, IQ-EQ Luxembourg
(Photo : 360Crossmedia)
Environmental, social and governance (ESG) is no longer a concept for hippie investors or millennials. It has become a new way of doing business, and if you don’t join the bandwagon now, you will miss the party – or, more specifically, the fundraising party.
It is true that companies have been, even until recently, largely evaluated only on their financial parameters, such as price-to-earnings ratios or earnings growth, to determine whether they would make for a strong investment prospect. However,
ESG has risen firmly to the fore – driven by both investors and regulators, particularly in the wake of Covid-19 disruption – and
Dewi John: Equity takes a trip – in an ethical way
You may not be going abroad any time soon – but here is why your equity allocation is likely to
The big success story of late has been global equities. The Refinitiv Lipper classification Equity Global has raked in £16.9bn from UK investors over the 12 months to the end of March. That is heavily loaded towards the back end, with £5.5bn in the last quarter of 2020 and £6.5bn in the first quarter of 2021.
Global equities’ popularity is not simply a facet of the broader asset class. Asset allocators and academics have long mourned investors’ home bias to the detriment of optimising risk-adjusted returns. That is certainly not the case now, as Equity UK has shed £1.8bn over the past year – losing £2.2bn in the first quarter of 2021 alone – despite the rally in the shares of UK PLC.
Recent regulatory developments of interest to most financial institutions.
Contents
Tackling financial exclusion: House of Lords Liaison Committee follow-up report
Safe harbour provisions to support the wind-down of critical benchmarks: RFRWG letter
Net zero and the future of green finance: Treasury Committee report
UK Future Regulatory Framework Review: BoE speech on PRA policymaking
UK MiFID research and best execution reporting requirements: FCA CP21/9
Strengthening financial promotion rules for high-risk investments and firms approving financial promotions: FCA DP21/1
Compliance, culture and evolving regulatory expectations: FCA speech
Improving effective regulation: FCA speech
Why black inclusion matters: FCA speech
Climate change and sustainable finance: FCA webpage
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