Q&A: What is “natural capital” and why should investors care? City Talk The last few hundred years of human activity have stored up changes in climate that threaten human existence. Climate change is not the only ecological threat. It’s widely agreed that damage to the natural environment and loss of biodiversity pose a comparable risk. Natural resources are the single most important input to the global economy. [...]
Chasing “financial independence retire early” (FIRE): is it possible? City Talk At what age are you planning to retire? For many the standard answer to this is “somewhere in my 60s or beyond”. Schroders analysis suggests that if you start saving for your retirement at age 20, you’ll need to save between 12% – 15% of your salary for 40 years to retire on 50% of your [...]
Gearing up against greenwashers: investors seek clarity on sustainability terminology City Talk A dearth of clear, agreed sustainability definitions present a challenge to investors looking to invest sustainably. This is according to the results of the Schroders Institutional Investor Study, which surveyed 650 institutional investors across 26 countries during April 2020. Gearing up against greenwashers Greenwashing is about falsely communicating the environmental benefits of a product or [...]
Institutions don’t share retail investors’ optimism on returns October 28, 2020 Schroders’ studies suggest retail – or individual – investors are more optimistic about future returns than investors at large institutions. Individuals have indicated that they expect average annual returns of nearly 11% over the next five years while institutional investors anticipate a more moderate 6%. Schroders’ Institutional Investor Study is an analysis of views from [...]
Can behavioural finance explain how investors think about sustainability? October 27, 2020 Schroders Global Investor Study 2020 examined the attitudes and beliefs of more than 23,000 investors on sustainability. It is a vast project that yields fascinating insights on the way investors think. We thought it would be interesting to put some questions to Stuart Podmore, Investment Propositions Director and an expert in behavioural finance, about the [...]
Are you motivated by morals or money? October 2, 2020 Investing is a personal choice and a number of influences will hold sway over where you put your money. Your personal value system is one such influence and, for most people, this appears to be non-negotiable. More than three-quarters (77 per cent) of investors refuse to compromise on their personal beliefs when investing, even if [...]
What anti-obesity measures and the National Food Strategy mean for businesses September 17, 2020 A number of studies suggest that people who are overweight or obese are at greater risk of serious illness, even death, as a result of Covid-19. In response, the UK government has set forth a raft of measures aimed at curbing obesity. The National Food Strategy’s first recommendations have also been submitted to government. Both target [...]
Why investors should pay attention to sugar August 14, 2020 Government action to promote healthy eating, especially in light of the spread of Covid-19, and ongoing changes in consumer tastes will continue to create headwinds for the food and beverage industry, and increasingly for food retailers and hospitality companies too. We’ve known for decades that obesity puts people at greater risk of serious and life-threatening [...]
What are “accidental savers” doing with their surprise savings? July 14, 2020 Lockdown restrictions have curbed spending, resulting in higher savings in the UK. Some of this has found its way into the financial markets; actively managed responsible investment funds have been the biggest beneficiaries. The words “accidental” and “saver” don’t often appear in the same sentence together. Saving usually takes some effort and requires sacrifices and [...]
Three behavioural biases to watch out for during a crisis June 25, 2020 Nick Kirrage walks us through the most common behavioural biases investors suffer from and how to overcome them. At the best of times, investors are at risk of succumbing to certain behavioural biases that can cloud judgment and impair decision-making. In highly stressful and unpredictable times like the Covid-19 crisis, there is a greater propensity [...]
