Buy side Archive

Nov 19, 2020
Jump in investors that want executive pay tied to ESG
More than two thirds of investors want executive pay tied to ESG initiatives, a move that would pressure boards to achieve social and other key targets, according to the global Edelman Trust Barometer Special Report: Institutional Investors. Sixty-nine percent of stakeholders say they want to see a link between remuneration and ESG, a 17-point jump over 2019. ‘This is probably one of the biggest percentage-point...
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Nov 18, 2020
Examining how passive investors influence markets
Since the dawn of the 21st century the rise of passive investing has been the dominant story across asset management. In those 20 years, passive ownership in US equities has more than quadrupled, according to statistics compiled by Portformer. The Portformer research indicates that this rise in passive holdings has not been driven by linear growth but punctuated by rapid ...
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Nov 17, 2020
Markets close to ‘full bull’ as investors rotate into stocks
Stock market bullishness has climbed to its highest point of the year with investors slashing cash holdings and rotating into small caps and emerging markets, according to the latest global fund manager survey from Bank of America (BofA). Confidence is so high that it is close to ‘full bull,’ say BofA analysts, a level that could indicate it's time to sell the vaccine rally. The research, which polled 190 investors managing around $526 bn, took place bet...
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Oct 06, 2020
The intersection of securities lending and ESG investing
In early December 2019 the Japanese Government Pension Investment Fund announced that it had ‘decided to suspend stock lending until further notice’. This is one example of a growing number of asset owners evaluating their securities lending practices due to ESG concerns as long-term investors. Concerns have been raised that short-sellers (borrowers) could potentially undermine long-term stewardship efforts by mispricing or not considering ESG characteristics....
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Oct 06, 2020
What will the US election mean for the markets?
This year’s US election threatens to be one of the most contentious and bitter in recent memory. In ordinary election years, investors tend to take a more conservative approach to the markets, based on the uncertainty of who will prevail. This year, the election is coupled with the US government’s response to the Covid-19 outbreak, and the effect that has had on US public debt. In this article, we look at five potential scenarios that could play out between now ...
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Oct 02, 2020
The week in investor relations: Markets hit by Trump virus news and companies reconsider dividend cuts
– US stock futures fell sharply after US President Donald Trump said he had tested positive for coronavirus, reported the BBC. The Dow Jones, S&P 500 and Nasdaq all indicated they would drop at least 1.5 percent at market open. The president revealed he and his wife Melania had coronavirus via Twitter.  – Ferguson, the British plumbing company, saw its shares rise 6 percent after it told investors it ...
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Sep 18, 2020
The week in investor relations: Climate action, home-grown CEOs and record engagement
– Climate Action 100+, an investor group with $47 tn in assets under management, sent a letter to companies with large greenhouse gas emissions calling for them to become net-zero emitters by 2050, reported the Financial Times (paywall). The group has already had a number of successes forcing change at large companies. Investors in the group include BlackRock and PIMCO. – The ...
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