Below you will find an extract from our modern approach to the profession, geared towards innovation, but marked by a constant stream of our most significant positions on current events in finance and the issues that drive it.
17 novembre 2021
COP 26: The climate war is on
Bhupender Yadav, India’s Minister for Environment, Forests and Climate Change: « I’m sorry, I think a consensus is still hard to find, developing countries have a right to responsible use of fossil fuels. »
In the end, the Glasgow climate pact does not talk about an « exit » from coal-fired power without a CO2 capture system, but about a « decrease ».
A nuanced agreement just two days after China and the US committed to « enhanced action to raise ambitions during the 2020s » to combat greenhouse gases, without further details either.
In the end, the Glasgow climate pact does not talk about an « exit » from coal-fired power without a CO2 capture system, but about a « decrease ».
A nuanced agreement just two days after China and the US committed to « enhanced action to raise ambitions during the 2020s » to combat greenhouse gases, without further details either.
10 novembre 2021
COP26: Current economic growth is incompatible with the climate
Siti Nurbaya Bakar, Indonesia’s Minister of Environment and Forestry, home to the world’s third largest rainforest, said on November 3 at COP26 that « forcing Indonesia to achieve zero deforestation by 2030 is clearly inappropriate and unfair […]
She reinforced her point by noting that there are many ways to define deforestation, and that any agreement could not stop economic growth.
[The massive development of the President Jokowi era must not be stopped in the name of carbon emissions or deforestation […] ».
She reinforced her point by noting that there are many ways to define deforestation, and that any agreement could not stop economic growth.
[The massive development of the President Jokowi era must not be stopped in the name of carbon emissions or deforestation […] ».
5 novembre 2021
Give up the fossil: The other side oft he coin!
UN Secretary General Antonio Guterres said at the start of COP26 that […] the time has come to say « enough » to non-renewable energy […].
What are we talking about when we want to move away from fossil fuels?
Our entire economic development is based on energy.
This is derived from several consolidated sources.
It remains that 61% of this energy comes directly from oil, gas and coal.
The quantities extracted from the earth are: for oil (2019) 5,524,000,000,000 litres2 or 32 times the volume of the Aswan Dam, one of the largest dams in the world.
What are we talking about when we want to move away from fossil fuels?
Our entire economic development is based on energy.
This is derived from several consolidated sources.
It remains that 61% of this energy comes directly from oil, gas and coal.
The quantities extracted from the earth are: for oil (2019) 5,524,000,000,000 litres2 or 32 times the volume of the Aswan Dam, one of the largest dams in the world.
27 octobre 2021
« Finance represents the keystone of successful transition »
As an observer, you have participated in most of the Conferences of the Parties (COP).
You were very confident in previous editions, but seemed a little disillusioned after COP 25.
Why was this?
I was indeed still very excited at the 24th edition because it followed Paris (COP21), the great COP, the big trigger that brought something new: the economy.
Paris brought together governments, companies and NGOs.
At the 25th, we were at Greta coming to make her speech.
We listened to her.
People took to the streets.
It became a global movement that raised awareness.
You were very confident in previous editions, but seemed a little disillusioned after COP 25.
Why was this?
I was indeed still very excited at the 24th edition because it followed Paris (COP21), the great COP, the big trigger that brought something new: the economy.
Paris brought together governments, companies and NGOs.
At the 25th, we were at Greta coming to make her speech.
We listened to her.
People took to the streets.
It became a global movement that raised awareness.
1 mars 2021
The circulary economy: unparalleleled societal gtowth
Planet Earth is a finite resource.
For nearly two and a half centuries, we have been building an « unnatural » world, consuming this tesource with no thougth to its protection and preservation for the futire.
In the first quarter of the 21st century, we find ourselves at a crossroads with unpercedented potential for growth.
We must renew, reconstrucu and continue to build a world that will provide a safe home for existing and future generations.
For nearly two and a half centuries, we have been building an « unnatural » world, consuming this tesource with no thougth to its protection and preservation for the futire.
In the first quarter of the 21st century, we find ourselves at a crossroads with unpercedented potential for growth.
We must renew, reconstrucu and continue to build a world that will provide a safe home for existing and future generations.
13 avril 2020
COVID-19 opportunities: moving towards a more evenly distributed economy
In 1972, the meteorologist, physicist, mathematician and computer scientist Edward Lorenz gave a lecture titled: « Predictability: Does the flap of a butterfly’s wings in Brazil set off a tornado in Texas? ».
Humanity has just witnessed an application of the « butterfly effect » theory that is still ongoing and of which the chain reactions have only just begun. Small causes leading to massive effects of which the outcomes are extremely hard to predict and mitigate due to the widely varying reactions of various States.
These notably include a total lack of coordination by the European Union, which remained in denial for several weeks.
17 janvier 2020
Sustainability: between ‘ fake news ‘ and growth opportunities
Global economic development is gradually moving into a new paradigm both, on one hand, by the positive evolution of the stock markets in 2019, which for many stocks are based on the rise in multiples (Priceto-Earnings Ratio), whose levels will have to be supported by a recovery in corporate profit; and, on the other hand, by the positive impact that structural changes in production/consumption linked to our footprint on the environment in general will have on growth
1 novembre 2019
VIEWPOINT
Impact and ESG investing will require substantial investment in new sustainable
infrastructure, eco-friendly transportation, more efficient production processes,
sustainable supply chains and cleaner technologies.
This will lead to extraordinary economic growth over the coming decades.
This will lead to extraordinary economic growth over the coming decades.
1 juin2018
Providing financial support for the cleantech boom
Olivier Ferrari has been immersed in finance since the start of his professional career.
Today he envisages sustainable investment light years away from a purely speculative approach. With a particularly strong personal commitment to conservation of the environment and driven by the determination to facilitate sustainable economic development, back in 2010 he co-founded a cooperative company whose aim was to provide financial support for the clean technology boom.
No matter if this approach is less profitable in the short-term than traditional investment solutions.
Today he envisages sustainable investment light years away from a purely speculative approach. With a particularly strong personal commitment to conservation of the environment and driven by the determination to facilitate sustainable economic development, back in 2010 he co-founded a cooperative company whose aim was to provide financial support for the clean technology boom.
No matter if this approach is less profitable in the short-term than traditional investment solutions.
7 avril 2020
Les chances du COVID-19 : Évoluer vers une économie mieux distribuée
En 1972, Edward Lorenz, météorologue, physicien, mathématicien, informaticien, donne une conférence : «Prédictibilité : le battement des ailes d’un papillon au Brésil déclenche-t-il une tornade au Texas ?».
L’humanité vient d’avoir une application de la théorie de « l’effet papillon » encore en cours, dont les réactions en chaîne n’ont été qu’initiées.
À petites causes, grands effets dont il est bien difficile d’en prévenir l’avenir tant les réactions des États sont, entre autres, non coordonnées si l’on prend l’Union européenne, dans le déni pendant plusieurs semaines.
L’humanité vient d’avoir une application de la théorie de « l’effet papillon » encore en cours, dont les réactions en chaîne n’ont été qu’initiées.
À petites causes, grands effets dont il est bien difficile d’en prévenir l’avenir tant les réactions des États sont, entre autres, non coordonnées si l’on prend l’Union européenne, dans le déni pendant plusieurs semaines.
1 septembre 2016
State social security, pension funds with their backs to the wall
The first contributors to the Swiss AVS pension scheme to have benefited from a full financing period have done so since 1993 (after 45 years).
For the LPP, the Swiss occupational benefit scheme, that will not be the case until 2025. With this private system, all persons who reach retirement age find that their benefits are insufficient.
That fact must be realised and suitable action taken today. Measures of various kinds are possible; in every case, they will involve an increase in contributions or a reduction of benefits; specific action may also be taken for the most underprivileged by providing supplementary benefits or else the State will have to increase its own contribution; perhaps we will even see a return to inter-generational responsibility within families with parents helping to support their children, as happens in the countries of the South today.
For the LPP, the Swiss occupational benefit scheme, that will not be the case until 2025. With this private system, all persons who reach retirement age find that their benefits are insufficient.
That fact must be realised and suitable action taken today. Measures of various kinds are possible; in every case, they will involve an increase in contributions or a reduction of benefits; specific action may also be taken for the most underprivileged by providing supplementary benefits or else the State will have to increase its own contribution; perhaps we will even see a return to inter-generational responsibility within families with parents helping to support their children, as happens in the countries of the South today.
1 avril 2016
How important now is it for Swiss independent asset managers to incorporate ESG into their portfolios?
ESG criteria are not yet being effectively integrated into the portfolios of independent wealth managers’ clients.
One might even go so far as to point out that the situation is the same for a majority of financial establishments in Switzerland.
However, if we take the view that one of the greatest advances achieved by the COP21 conference in Paris is that industries will be leading change in terms of sustainable development, sooner or later this issue will no longer be specifically confined to financial management but will instead become a part of normal life. That will take time.
One might even go so far as to point out that the situation is the same for a majority of financial establishments in Switzerland.
However, if we take the view that one of the greatest advances achieved by the COP21 conference in Paris is that industries will be leading change in terms of sustainable development, sooner or later this issue will no longer be specifically confined to financial management but will instead become a part of normal life. That will take time.
1 décembre 2015
A regressive factor in sustainable economic development
The controversy over the respective merits of index-tracking management and active management has lasted for nearly three decades.
The proponents of index-tracking believe it is impossible to beat the market in the long run and therefore preferable to follow an index.
This guarantees that there will never be any “unpleasant” surprises because over the years the investor will see returns on his investments which are consistent with market trends in both the upward and downward directions.
This puts an end to “cyclical” complaints by the client who can no longer refer to the notion of positioning risk – be it geographical, by capitalisation or sectoral.
The proponents of index-tracking believe it is impossible to beat the market in the long run and therefore preferable to follow an index.
This guarantees that there will never be any “unpleasant” surprises because over the years the investor will see returns on his investments which are consistent with market trends in both the upward and downward directions.
This puts an end to “cyclical” complaints by the client who can no longer refer to the notion of positioning risk – be it geographical, by capitalisation or sectoral.
1 septembre 2014
An added performance value, comparable to active management
The actual concept of socially responsible investment was gorn in an Anglo-Saxon community within the Quaker religious movement.
The principle was based on philantropy.
This led followers to query the nature on their financial investment!
Evolution resulted in the integration of various exclusions such as « vice companies »; those that sell weapons, alcohol and tobacco.
The principle was based on philantropy.
This led followers to query the nature on their financial investment!
Evolution resulted in the integration of various exclusions such as « vice companies »; those that sell weapons, alcohol and tobacco.
1 mars 2014
IPE put some questions to pension consultants and fiduciary managers, here is a selection of their views
The questions:
I°
A 2013 study by Jenkinson, Jones, and Martinez of the Saïd Business School, UK, questioned the ability of US consultants to select asset managers.
What can you say in defence of your firm’s processes and track record in this area?
II°
Institutional investors have been urged to allocate long-term capital into the real economy.
What are the biggest challenges that your firm faces in this area?
I°
A 2013 study by Jenkinson, Jones, and Martinez of the Saïd Business School, UK, questioned the ability of US consultants to select asset managers.
What can you say in defence of your firm’s processes and track record in this area?
II°
Institutional investors have been urged to allocate long-term capital into the real economy.
What are the biggest challenges that your firm faces in this area?
1 décembre 2013
Positive finance to give finance a future
The development of the sub-primes crisis in 2007 caused the financial crisis, which was followed by such a shock wave that it led to strengthening governance still further in the management of the capital of pension funds in general.
At the same time, the globalisation of the worldwide economy was finalised by the simultaneous arrival of China on the chessboard of large producers/consumers and increasing awareness of the negative impact of human activity on the environment.
At the same time, the globalisation of the worldwide economy was finalised by the simultaneous arrival of China on the chessboard of large producers/consumers and increasing awareness of the negative impact of human activity on the environment.
21 août 2013
In favor of sustainable development
Return on investment from the financing of research, development and production of consumer goods as well as from the operating and development of infrastructures, goes far beyond the short-term view of the actors in today’s financial markets.
Systematic pursuit of immediate stock exchange profits keeps industry from planning medium- and long-term development of its activities.
On the other hand, making lasting investments – with emphasis on the capacity of the economy to generate increasing dividends rather than simply targeting regular capital gains – responds to the logic of sustainable industrial development.
Systematic pursuit of immediate stock exchange profits keeps industry from planning medium- and long-term development of its activities.
On the other hand, making lasting investments – with emphasis on the capacity of the economy to generate increasing dividends rather than simply targeting regular capital gains – responds to the logic of sustainable industrial development.
1 mars 2013
IPE put some questions to pension consultants and fiduciary managers across Europe.
I question:
What is your firm’s structure and process for the generation of strategic investment views and beliefs?
II question:
What does your firm do to align its incentives with the longer-term interests of its clients?
III question:
What does your firm do to align its incentives with the longer-term interests of its clients?
What is your firm’s structure and process for the generation of strategic investment views and beliefs?
II question:
What does your firm do to align its incentives with the longer-term interests of its clients?
III question:
What does your firm do to align its incentives with the longer-term interests of its clients?
1 mars 2011
IPE pur some questions to pension consultants across Europe
I question:
After the financial crisis pension fund advisers focused on improving portfolio risk management and integrating this with broader asset-liability and operational risk.
Can you give examples for how your organisation has strengthened its pratice in these areas ?
II questions:
Can you identify investment themes, asset classes or strategies that you are currently recommending to
a. Your largest clients?
b. Vour medium-sized clients?
c. Your smallest clients?
After the financial crisis pension fund advisers focused on improving portfolio risk management and integrating this with broader asset-liability and operational risk.
Can you give examples for how your organisation has strengthened its pratice in these areas ?
II questions:
Can you identify investment themes, asset classes or strategies that you are currently recommending to
a. Your largest clients?
b. Vour medium-sized clients?
c. Your smallest clients?
1 octobre 2006
Consultants kept busy as regulation mounts
Legal changes in Switzerland and choppy markets have consultant in the countra fully occupied, as pension funds strive to maximise returns and keep up with what the regulators require on them.
The pensions environment is becoming more complex in many ways for clients, says Sven Ebeling, countr head in Switzerland of Mercer Investment Consulting.
« Capital market are more volatile, and the legal framework is more complicated », he says …
The pensions environment is becoming more complex in many ways for clients, says Sven Ebeling, countr head in Switzerland of Mercer Investment Consulting.
« Capital market are more volatile, and the legal framework is more complicated », he says …
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