Before you get stuck in...
Laura BampfyldeDirector, WealthFind me on LinkedIn
On nearly all documents produced within the investment industry, we add the disclaimer “past performance is not an indication of future performance”; yet we spend a lot of time looking back. In this quarter’s edition of Investment Edge, we’re looking ahead. I hope you can take some time to enjoy a coffee, have a read, and maybe spark some ideas on what could be ahead for you, too.
First, Arash Nasri, our senior investment consultant to wealth managers, discusses alternative ways to weight markets in wealth portfolios. The default approach is market capitalisation. It helps with benchmark comparisons, but does it mean we’re investing most in the markets that have grown already, rather than those on a better trajectory? Read on to find out how this relates to a trip to the florist!
Before you get stuck in…
The epitome of looking ahead is thinking about the legacy you’ll leave behind. There’s a Greek proverb that says “society grows great when old men plant trees in whose shade they will never sit”. Yet, in the wealth industry, when we talk about ‘legacy’, it’s more often than not about ‘legacy clients’ and ‘legacy propositions’ – a burden our businesses inherited rather than something we'll leave for future generations. How do we bring these two disparate meanings together into something positive? Paul Lee, our Head of Stewardship and Sustainable Investment Strategy, thinks the answer may lie in stewardship.
ESG isn’t a new topic, but increasingly (and rightly) attention is turning to the Earth’s natural capital – that is – the stock of renewable and non-renewable natural resources (plants, animals, air, water, soils, minerals) that combine to yield benefits to people. It shouldn’t come as a surprise to hear that our natural capital is depleting at an alarming rate. In this quarter’s Sustainable Investing Q&A, we ask the team to teach us more about natural capital solutions and how wealth managers should consider biodiversity in their portfolios.
Lastly, we chat with our CIO, Pete Drewienkiewicz, by the water cooler to hear what’s been keeping him busy this quarter and what’s in store for the rest of the year.
I hope you enjoy the read. As always, we’d love to hear from you with any feedback or ideas for future topics.