Taming the tiger - what it takes for India to steady growth; McDonald's out of ESG favour

Nov 14, 2019

Join us for a robust exploration of India’s macro outlook and investment opportunities, with Ministry of Finance Director of Policy Suresh Pentoka, ICICI Bank Head of Research Kamalika Das & others

McDonald's and Wal-Mart out of ESG Favour

The growing mass of investment funds applying environmental, social and corporate governance or ESG standards to their portfolio are avoiding some of the biggest consumer brands along with oil and tobacco producers.
McDonald's Corp. shares, which are held by nearly one in five global equity funds, along with Wal-Mart Stores Inc. attract zero allocation from ESG funds included in a survey by Copley Fund Research, which monitors 767 funds managing a total $1.2 trillion of assets. 
“While ESG funds are less exposed to sectors with obvious social and sustainability challenges — notably tobacco and oil and gas — the food and staples sector is also vulnerable to being shunned by the growing mass of environmental and socially minded investors,” said Steven Holden, CEO of Copley Fund Research.

These stocks are losing out on a growing investment base. Assets in dedicated Global ESG strategies in Copley’s survey have doubled since 2017. 

The performance of ESG funds has improved too. While 10-year performance for ESG funds lags those unconstrained by such filters, it’s the opposite picture for the last five years, with ESG returning an extra 3.2%.Read related news from our network on Bloomberg and Arabian Industry

India in Focus - Roundtable Lunch Discussion

20-21 November 2019 Edinburgh & London

Join us for a robust exploration of India’s macro outlook and investment opportunities, with a primary focus on the impact for financial markets:

  • Taming the tiger: what it takes for India to steady growth
  • Policy priorities: expect the unexpected
  • Rupee or not rupee: the currency question

Speakers include prominent leaders in policy, economy and business from the UK and India, including:

  • Suresh Pentakota, Director (Policy), Ministry of Finance, Department of Investment and Public Asset Management (DIPAM), New Delhi
  • Kamalika Das, Economist & Head of Research at ICICI Bank, Mumbai
  • Manish Luharuka, Head of Proprietary Trading (fixed income and FX) at ICICI Bank, Mumbai; former Executive Director at Goldman Sachs India Capital Markets
  • James Winterbotham, Partner, India Advisory Partners, London; former senior investment banking director focused on India & EM Asia
  • Sam Tully, Senior Advisor at Spark Capital, London; former director at Credit Suisse and Standard Chartered focused on India and Asia
  • Uzair Syed, India Specialist at Scottish Development International, Glasgow
  • Senior official, Indian High Commission, London Senior official,
  • Senior official, Consulate General of India in Edinburgh

Register for the London event here
Register for the Edinburgh event here

Times Square Opens to Dubai

New Markets Media & Intelligence brought global emerging market opportunities to Times Square in New York, with a conference at Nasdaq Tower focused on Dubai’s ecosystem of asset management and related business areas.

For more details of all our forthcoming events on emerging markets and emerging technology, click here

Shipping Adds (Calorific) Value to Fuel Buying

If shipping were a country, it would be the sixth biggest polluter in the world. 

However, the industry has been a major focus of regulatory attention, with the new IMO 2020 rules forcing shipping to reduce sulphur in fuel from 3 to half a percent.

This move will particularly help reduce pollution in areas beyond the protected shores of Europe and North America. 

There are many complexities and a lot of innovations in a mission not dissimilar to cleaning leaded petrol.

Read analysis from our network on Ship & Bunker

Silver Lining seen in Metals and Mining Bear Market

If this year’s bear market for metals and commodities has a silver – or steel or copper – lining, it’s that tough times beget tough measures.

CEOs remain under pressure to avoid any value-destroying volume growth.

In fact, capital expenditure in the industry has fallen from around twice the level of depreciation seen over past decades to a level now where spending is insufficient to replace depleting mines, according to research by Renaissance Capital.

Rather than boosting production, management focuses on growing shareholder value through efficiency and productivity gains.

Cheaper stock valuations point to consolidation. Lower mine production places a floor under commodity prices.

This is the cycle that will present an opportunity for acquisitive companies and investors – at some point.

See highlights of our recent EMEA Metals & Mining Conference at the London Stock Exchange with Renaissance Capital event on Twitter & Linkedin under #EMEAMetalsandMining

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