ESG is measured wrong, says Dan Ariely. His fix is beating the S&P500
Dan Ariely has devoted his career to understanding irrational behavior. According to the Duke University professor of psychology and behavioral economics, ESG investors are the perfect test group. They focus, he says, on what is easy to measure rather than on what actually matters for returns.
Morningstar: DWS versus Kempen in global equity income
One in five global dividend funds now integrates ESG criteria. Where sustainable funds in other segments have struggled to maintain their growth momentum, sustainable global dividend funds have seen strong inflows in recent years.
What remains of Europe’s sustainable ambitions?
It was in May 2018 that the European Commission launched its highly ambitious European Sustainable Finance package. Seven years later, the political winds in Europe have shifted significantly, and sustainability ambitions are being scaled back step by step.
SFDR overhaul sets strict new rules for sustainable fund labels
The European Commission on Thursday unveiled sweeping changes to Europe’s Sustainable Finance Disclosure Regulation.
Halfway through the AI bubble
Nervousness around AI stocks reached a boiling point last week. Michael Burry, the investor who became famous for predicting the 2008 mortgage crisis, placed short positions on Nvidia and Palantir.
‘Cocos have never been safer’
The solid balance sheets and high profitability of banks provide a strong foundation for deeply subordinated bank bonds. They offer high returns at low risk.
As banks retreat, private lenders take the wheel
A good fifteen years after the global financial crisis rewired the world’s credit circuits, a new generation of credit masters now sits in the driver’s seat of corporate finance.
Blackrock’s latest loss widens rift between private credit yays and nays
New loan failures have reignited debate over the health of private credit. The bankruptcy of Renovo Home Partners last week has drawn warnings about the quality of the underwriting and possible systemic risks. Industry veterans push back, saying media coverage borders on sensationalism.
Chart of the week: apples and pears
Unless you’ve been living under a rock for the past twelve months, you can’t have missed witnessing one of the strongest gold rallies in recent decades. The number of parroted stories about gold has exploded, often relying on the same comparison. Yet it’s exactly that comparison which shows that not everyone sees the golden bull in the right perspective.
Morningstar: Colchester Global Investors vs MFS Asset Management
Top rated firms come in all shapes and sizes. Colchester Global Investors and MFS Asset Management have different specialties and histories. Both stand out for their commitment to putting investors’ interests first. This earns them both a Morningstar Parent Pillar rating of High.