Climate change is real and, arguably, presents an existential threat. Given energy’s share in the emissions cocktail, there are plenty of opportunities to invest in companies working on cutting CO2, reordering the energy mix and other aspects of this huge growth market, as Ulrik Fugmann and Edward Lees point out in our first article.
Growth also figures large in the populous Chinese economy – particularly market concerns over the outlook in the face of sizeable US export tariffs. However, economically, and also in weighing up investment choices, their impact should not be overrated, explains Caroline Yu Maurer.
Green bond issuance has expanded phenomenally, while a lopsided ratio of investor appetite to supply has resulted in “the premium that is the greenium”. Xuan Sheng Ou Yong presents his take on this fascinating fixed income segment in his analysis as part of a three-article series.
The energy transition offers opportunities to investors for whom sustainable outcomes matter. Fund managers Ulrik Fugmann and Edward Lees explain how they approach this.
There is more to investing in China than the fortunes of the Sino-US trade talks given the trade war’s limited effect on Chinese growth.
Some green bonds enjoy a ‘greenium’. We discuss this premium and whether it makes green bonds a distinct asset class.
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Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.