ESG Runs into Category Confusion One of the unforeseen consequences of the war in Ukraine has been a re-evaluation of industry categories hitherto understood to be contrary to economic, social, and governance (ESG) principles. This, in turn, has also exposed the limitations of ESG as a convenient catch-all term for ethical investing. Specifically, the
Sanctions Expose US Dollar Vulnerability but Dominance Set to Continue For the past century the US dollar has enjoyed unrivalled supremacy in global trade and finance. But the war in Ukraine and subsequent imposition of sanctions on Russia – the so-called “weaponization of finance” – has drawn attention to this dominance. It has
Cryptocurrency Risk Worries Multiply Investment is a perpetual search for superior returns relative to risk. At different points in time, various asset classes came into vogue. In the 1970s, gold was in favor. The 1990s saw emerging markets take on a new prominence. This century has seen the rise of alternatives. All of
New Inflationary Regime Takes Hold Around the world major economies are grappling with an extraordinary bout of inflation that has put to an end a disinflationary regime that lasted for 40 years. The euro area hit a record 8.1% rate in May. The UK’s consumer price index (CPI) rose by 9% in April
New Sanctions Regime Expands Frontiers of Financial Crime The wave of sanctions following the Russian invasion of Ukraine is a punctuation point in the fight against financial crime. Meanwhile, the massive expansion in sanctions has coincided with a burst of activity on the part of the Financial Action Task Force (FATF), the global
Sustainable Funds Labelling Under Examination The public appetite for sustainable investment is by now well understood and something that is uppermost in the minds of those responsible for the marketing of investment fund products. But the ability of concerned investors looking to target funds that adhere to environmental, social, and corporate governance (ESG) standards
Active Investing Remains the Foundation of Fund Management Rock-bottom fees have propelled the popularity of passive funds over recent years but there are many reasons why active management will always have primacy in the business of fund management. Active fund management rallied in Europe in January, with mutual fund inflows of some USD 50
Banks Slow to Act on Climate-Related and Environmental Disclosures As momentum builds internationally for meaningful climate-related and environmental disclosures, an ECB report finds that European banks have made slow progress. Additionally, where disclosure is made, there is a marked lack of substantiation behind the figures. Europe’s banks have made little progress on climate-related and
Regulator Concern at Online Investor Vulnerability Both the European Commission and the SEC have expressed concern over the rise of “gamification” of retail investing and indications are that enhanced investor protection regulation is inevitable. It was just over a year ago that the global stock markets witnessed one of the most unusual phenomena
CBDC: Central Banks Mobilize to Retain Control Over Monetary Sovereignty The Covid crisis was just one of a number of factors that challenged traditional notions and habits around money. New technology has already transformed people’s relationship with legal tender but more profound questions over “ownership” of money and payments systems are emerging. Against that
