Monthly Investment and Research Commentary – March 2015

Country Ranking There was one change in the Magni Country Scores from last month: Spain was upgraded (the update is described below). South Korea and Japan have seen their scores rise the most in the past 12 months, followed now by Spain as the third largest gainer in that time. Egypt and Thailand have been […]

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Reforms to Avoid the Predicted Chinese Crackup

Saint Paul, Minnesota – March 17, 2015 – In a recent Wall Street Journal article David Shambaugh predicted an end to the political system of China. His rationale is that the energy, creativity, and constructive power so badly needed for change in China can only be introduced through political reform and that, in the absence […]

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Ranking Emerging Market Countries – When Numbers Are Not Enough

Saint Paul, Minnesota – March 10, 2015 – After two consecutive years of negative returns investors are increasingly speculating about whether 2015 will be the year that emerging market equities rebound. Through the end of February, the MSCI EM index is up 3.7%. Magni is cautiously optimistic that these equities will move even higher over […]

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Why is it all about that G, not the S (or even the E) in investing? OR What would Meghan Trainor Have to Say About International ESG Investing?

This isn’t a trick question. Rather, it’s the surprising conundrum many investment managers are having when it comes to global investing for their clients. There simply isn’t clear direction to choosing the “right” stocks. Does relying upon traditional company analysis work for international companies and their stock? Political, geographic and economic unrest serve to complicate […]

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Why is it Important to be Positive When Doing Responsible Investing?

A value-based approach to constructing investment portfolios, with roots back to the 1500’s, became known in the 1960’s as Socially Responsible Investing (SRI). Initially, such portfolios were mostly constructed using a negative screen to exclude companies that were inconsistent with a particular set of values, such as religious, social, ethical or environmental issues. In the […]

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What is Next for SRI/ESG Investing?

Responsible Investing seeks to both align investments with values and obtain attractive returns. While studies found little consistent predictive power from commercially-available screens of companies based on environmental, social and corporate governance (ESG) ratings, increasingly the historical perception that Responsible Investing investment products deliver subpar performance is diminishing. Given the large and growing demand of […]

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Does South Africa beat Switzerland in SRI and ESG Investing?

March 2015 As a result of increasing Responsible Investing mandates (including SRI and ESG) from clients, advisors are looking for new approaches to global equity investing On average, developed countries are better for such mandates than emerging countries, though not all countries in each grouping are equal Without widely available international investment analysis, news events […]

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How to Invest Internationally with an SRI or ESG Mandate

March 2015 While many investment offerings can claim to be aligned with an SRI or ESG framework, it is difficult to find investments that incorporate the three best Responsible Investing practices: (1) positive screening, (2) emphasis on corporate governance, and (3) actively rewarding improvements. A Country Selection Technique, pioneered by Magni Global Asset Management, can […]

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