CPD: The outlook for dividends in a world of yield starvation

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There remains much uncertainty regarding the depth, breadth and length of the COVID-19 recession. For example, the Global Economic Policy Uncertainty Index (compiled by academics from Stanford, Chicago, and Northwestern) stands at a record high and almost twice its level during the global financial crisis (GFC). Bill Priest, CFA, Executive Chairman, co-CIO and portfolio manager […]

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Deferred, cancelled, and suspended – a look at dividends in the current market environment

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What has happened? The COVID-19 pandemic and response from governments to manage the health and safety of the global population has led to significant changes in daily life. Social distancing and isolation have become the new norm; homes have become offices, businesses have had to shut down temporarily if not permanently, and traffic has become […]

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Explaining the April US equity bounce

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Key points US unemployment is heading for levels not seen since the Great Depression. Despite the current dire economic outlook, US equity indices are back to October 2019 levels after a sharp recovery in April. Ultimately, share prices are driven by corporate profits; and corporate profits are driven by, among other things, government deficits. The […]

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Time to stay invested: Nuveen encourages long-term investment perspective despite COVID-19 challenges

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Nuveen, one of the world’s largest investment managers, is urging local institutional investors to maintain long-term investment perspectives, despite the global market instability caused by the coronavirus health and economic crisis. Markets have been thrown into turmoil and investors globally are grappling with positioning their portfolios to minimise damage and take advantage of eventual recovery. […]

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Three building blocks needed to exit COVID-19

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The global economy requires three key building blocks to ‘exit’ COVID-19 in the safest, most effective way possible, according to Lazard Asset Management. In a note to investors, Ron Temple, Co-Head of Multi-Asset and Head of US Equity, argued that improvements in healthcare systems, economic implications, and monetary policies, will enable the global economy to […]

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Earnings downgrades globally still have a long way to play out

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The outlook for investors has changed dramatically since the start of the year and will likely continue to shift moving forward. The associated shocks of the severe dislocation in global markets resulting from COVID-19 has many investors concerned about the prospect of lower dividends and muted growth expectations from equity holdings, as well as the […]

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CPD: Is negative interest rate policy a ‘cure’ worse than the disease?

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Interest rates, as the Boss would say, are goin’ down, down, down, down. However, are the potential outcomes of negative interest rate policy (NIRP) worthwhile? The Economics Team at GSFM’s investment partner, fixed income specialist Payden & Rygel, examines this issue. Down, down, down is not merely a song lyric. Rates have fallen. It’s not […]

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CPD: Global listed infrastructure –‘Buy’ time looming?

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The COVID-19 pandemic has very likely pushed the international economy into recession and cut a swathe through global equity markets. From 21 February through to the end of March 2020, the US S&P 500 equity index was down 23.2% and the MSCI World index was down 23.1%. Listed infrastructure has certainly not been immune to […]

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ESG scores signal resilience

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Companies with higher ESG ratings performed notably  better and were more resilient during the outbreak of the Coronavirus pandemic compared to investments with lower ESG ratings, according to AXA IM. The global investment manager’s research into the global equity market shows ESG leaders outperformed ESG laggards by 16.8% in the first quarter of 2020. AXA […]

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ESG rating linked to outperformance during pandemic

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The recent period of market volatility as a result of the coronavirus pandemic has shocked in its severity. But the broad-based sell-off did discriminate, as new data from Fidelity International reveals. Each additional level (from A – E) of Fidelity’s proprietary environmental, social and governance (ESG) ratings was worth 2.8 percentage points of stock performance […]

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