Views of our experts

The half-year numbers of Swiss Industrials, reported in July or August, were good, mostly unaffected by the rapid price increase of raw materials. Pricing power was strong, and in an environment with solid economy data, companies were able to respond quickly to the cost pressure. Arguably, there were some exceptions: Bystronic, Daetwyler, Forbo and Schweiter, which warned before and/or missed market consensus.

Optimal selection of active managers is one of the keys to dealing with the normalisation of monetary policies and the accompanying adjustments in valuations.

Historically, the integration of ESG factors has focused on equities and corporate bonds. Today, the ESG approach extends to all asset classes in a portfolio. Sovereign issuers, whether "emerging" or "developed", are no exception, with the development in recent years of an ESG sovereign rating based on precise and available data (for example on climate, human rights, employment or natural resource management issues). In order to better identify and manage credit risks linked to governments, many investors are integrating this assessment in addition to a traditional analysis based on macroeconomic and financial variables.

The global rise in interest rates is weighing heavily upon emerging bond markets. It is, of course, crippling secondary market performance, but it also has an effect on a primary market in foreign currency that is breaking down a little more each day.

A little journey through time. Not the kind made in a DeLorean; the faintest of memories is all we need. One year ago, growth companies were sailing along on the wave of appetite for risk. Although we could each see the clouds on the horizon, nothing could quell the enthusiasm of investors emerging from the Covid crisis.

The Utilities sector is experiencing a strong transformation. From a traditional “boring and non-event“ sector, to become the pillar of one of the most ambitions and worldwide shared trends; decarbonising the world, aiming by 2050, Net Zero Greenhouse Gas emissions (GHG).

“I’m talking about a time that those of us under 40 wouldn’t know.” A time when issuer risk was the focal point of investors’ attention and fear. So, despite the “holiday forgetfulness”, it is probably worthwhile to give a brief reminder about issuer risk in structured products.

The extreme economic and market conditions of the past few years have been surprising, reinforcing the view that forecasting is a difficult exercise. Jose Manuel Castro looks at this decade’s unpredictable macro environment and where we go from here….

Stefanie Scholtysik examines the risk to Swiss companies for the German gas difficulties and how the risk can be mitigated…

Green – or renewable – hydrogen is, more than ever, high on the political and economic agenda.

The acronyms are changing. TAM is now replaced by ROI. Technology is a sector famed for its ability to quickly change and shape the times; of the day and of the future. The change in the focus of investing in the technology sector in can now be added in equally quick measure.

In recent years, Spain’s stock market has registered underperformance in Europe due to, among other factors, the country’s lack of significant differential premium growth vs. other member states.

The role played by social networks, regarding their impact and social responsibility are more prominent than ever. Content found on platforms such as Meta (Facebook), Twitter or Youtube has particularly become a key issue, given the fact that the negative impacts of hate, conspiracy or racist speech have become both visible and significant.

‘It is universally acknowledged that when selling a house, one needs to run an auction process to maximise the price. However, selling a business is a different kettle of fish entirely.’ Says Andreas Plattner, Managing Partner at Mirabaud Advisors.

‘There is a sizeable gap between vision and theory on the one hand and the reality on the other hand.’ Daniel Koenig explores the hurdles facing the race for renewable energy in Europe.

With the circular economy high on the political agenda, the European Commission's goal is to make all textile products recyclable by 2030. Given its negative impact on the environment, the fashion sector appears to be a prime target.

Equity analyst and life science specialist Daniel Jelovcan sheds some light on the niche market of peptide manufacturing. With one kilo of peptide costing as much as 4x the price of a kilo gold (more than CHF 200’000 per kilo), this is a lucrative industry.

The Russian assault on Ukraine is particularly shocking given the terrifying human cost it has caused since its outset, notably in terms of millions of refugees and civilian and military casualties. The war will also impact the climate and the course of the current energy transition, with negative repercussions in the short term but hopefully more positive ones in the long term.

In his latest article, Neil Campling discusses Stock-Based Compensation among tech companies. Why pay attention to this particular metric? Read his article to know more.