You can also listen to this podcast on Apple or Spotify

An excerpt from this interview with Pendal’s head of government bond strategies Tim Hext:

After the latest inflation numbers, you’re probably thinking “so far, so good” on rate rises and the economy.

No evidence yet of a sharp slow-down and fixed mortgage holders seem to be adjusting ok to higher rates, partly due to strong employment.

Though we’re only halfway through the six-month fixed-rate cliff period, points out Pendal’s head of government bond strategies TIM HEXT in this latest fast podcast.

What’s next for investors?

“It’s a very mixed picture and with managing money, you’ve got to respect that for now,” says Hext.

“The mega trends are probably on hold for the next six to 12 months, but we’ll be keeping a very close eye on everything to see what emerges.”

Listen to the full podcast above

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About Tim Hext and Pendal’s Income & Fixed Interest boutique

Tim Hext is a Pendal portfolio manager and head of government bond strategies in our Income and Fixed Interest team.

Tim has extensive experience in banking, financial markets and funding including senior positions with NSW Treasury Corporation (TCorp), Westpac Treasury, Commonwealth Bank of Australia, Deutsche Bank, Bain & Co and Swiss Bank Corporation.

Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.

Find out more about Pendal’s fixed interest strategies here

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About Pendal

Pendal is a global investment management business focused on delivering superior investment returns for our clients through active management.

In 2023, Pendal became part of Perpetual Limited (ASX:PPT), bringing together two of Australia’s most respected active asset management brands to create a global leader in multi-boutique asset management with autonomous, world-class investment capabilities and a growing leadership position in ESG.

Contact a Pendal key account manager

Looking for exposure to AI? Go beyond big tech and look for companies using the technology to improve efficiency or build competitive advantage, says senior Pendal global equities analyst SUE SCOTT

• AI transforming business
• Look for productivity, product winners
• Find out about Pendal Concentrated Global Share Fund

THERE’S little doubt artificial intelligence technology has the potential to revolutionise the way business is conducted.

But for investors, finding the ultimate winners from AI is a challenging task.

Much of the early AI excitement this year has focused on the big tech firms that are developing the technology and the systems it runs on.

But for investors looking for a longer-term play, Pendal’s Sue Scott says a better approach may be to find the businesses succeeding in deploying AI in their own operations.

“There’s a lot of hype factored into what AI means for future earnings,” says Scott, senior investment analyst for Pendal Concentrated Global Share Fund.

“But our focus has been looking at the companies where AI is being successfully used as a tool for productivity and product development.”

Example one: copper mining

Scott says one early success has been at Freeport-McMoRan, one of the world’s largest copper miners, which has been able to drive higher production by deploying AI to recommend operational improvements.

“Freeport was asking the question ‘how do we get more out of what we’ve got, without spending a huge amount of capex?’ says Scott.

“They started with one mine in Arizona, trying to learn about AI and machine learning and what it could do to enhance their existing systems.

“They brought in the site operators, AI developers, and metallurgists to work together on training an AI model to make recommendations on setting mill processing rates.

“The result was a significant 5 per cent increase in production and a lift in copper recovery rates.”

Fed by sensors on the mine’s trucks, shovels and machinery, the AI model adjusts settings every hour to maximise production from different types of ore.

Over five years, Freemont will unlock the equivalent of one new processing facility in additional copper production.

Example two: solar panels

A second example of successful AI deployment is at French oil and renewables giant Total Energies, which has a target of switching its global service station network to solar power.

“Total operates in about 60 countries and runs thousands of service stations and they’re well on the way to achieving the solar goal,” says Scott.

“But during the project they realised that a lot of the places they operate were not covered by high satellite imagery — which is critical to working out a site’s solar potential.

“What they did was partner with Google to use generative machine learning models to develop a tool to measure solar potential in specific areas where there was no high-quality satellite imagery.

“The tool can also be used estimating the potential output of solar panels on private houses or on commercial and industrial sites.”

Higher productivity and earnings

AI is an important factor for investors to consider because it has the potential to lift productivity and earnings across industries.

“But some companies will be faster than others,” says Scott.

“Freeport has been working on this for five years. This isn’t a new thing. But it will incrementally improve as the technology improves.

“Our investment philosophy is always to own the dominant players in any particular market.

“To keep that edge, it’s important for us to see that they’re at least looking at these kinds of technologies.

“In a world where you’ve got supply chain issues, inflation, and margins under pressure, companies that can extract productivity from very little investment — which is what Freeport have done — are going to have an edge when it comes to profitability.

“They are the sorts of companies we like to invest in.”

Investors should also be mindful of the critical role of a company’s chief technology officer.

“The role of chief technology officer in any company is becoming increasingly important — and not because not just because of AI, but also because of the threat of cybersecurity.

“It’s also becoming increasingly important to have technology expertise at a board level as well.”

 

 

 

As the Albanese government prepares to issue Australia’s first sovereign green bonds, Pendal’s head of credit and sustainable strategies GEORGE BISHAY and ESG credit analyst MURRAY ACKMAN explain the issues in our latest fast podcast

You can also listen to this podcast on Apple or Spotify

An excerpt from this interview with Pendal’s head of government bond strategies Tim Hext:

The Albanese government is getting ready to launch Australia’s first sovereign green bonds, which are designed to fund public net-zero projects.

As with all new green bond issuances, investors will be looking to make a good return and a positive impact.

When it comes to impact, investors should be looking “additionality” in the projects funded by Albo’s green bonds, say Pendal’s head of credit and sustainable strategies George Bishay and ESG credit analyst Murray Ackman.

What does ‘additionality’ mean?

“Is it actually a step change?,” asks George. “Is it just refinancing an old project or is it a new project?”

Pendal’s team will be looking closely at additionality when considering the federal government’s issuances, which should be able to support bigger, riskier projects.

“We’re wanting to see projects that bring about some kind of revolutionary change,” says Murray.

“For example, we’ve seen in the US the Inflation Reduction Act has created a market for hydrogen by subsidising it significantly.”

In this short podcast, George and Murray explain more about green bonds and what investors should be

About George Bishay, Murray Ackman and Pendal’s Income and Fixed Interest boutique

George Bishay is Pendal’s head of credit and sustainable strategies. George has managed dedicated sustainable fixed interest portfolios for more than a decade.

He has worked across fixed income, credit and money market portfolios in investment management, credit analysis and dealing roles for more than 20 years.

In 2019 George was awarded the Alpha Manager status by Money Management publisher FE fundinfo.

Credit ESG analyst Murray Ackman joined Pendal’s Income and Fixed Interest team in 2020 to provide fundamental credit analysis and integrate Environmental, Social and Governance factors across credit funds.

Murray has worked as a consultant measuring ESG for family offices and private equity firms and was a Research Fellow at the Institute for Economics and Peace.

Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.

The team’s awards include Lonsec’s Active Fixed Income Fund of the Year (2022) and Zenith’s Australian Fixed Interest Manager of the Year (2020).

Regnan Credit Impact Trust is an investment strategy that puts capital to work for positive change.

Pendal Sustainable Australian Fixed Interest Fund is an Australian bond fund that aims to deliver performance alongside positive environmental and social outcomes.

Contact a Pendal key account manager

The RBA seems happy that inflation is heading in the right direction, but it’s a difficult path from here to the 2-3% band, notes Pendal’s head of bond strategies TIM HEXT

You can also listen to this podcast on Apple or Spotify

An excerpt from this interview with Pendal’s head of government bond strategies Tim Hext:

This RBA seems, for the first time, to be “a little bit more optimistic” that Australia may achieve a soft landing, says our head of government bond strategies Tim Hext.

“We saw that with the decision to hold rates for the second month in a row, and in the accompanying statement.

“They talked about it being a narrow path, but if you actually read their statement, it seems to be almost their base case now.”

But don’t hold your breath for rates cuts, says Tim in our latest fast podcast.

Getting inflation from 8% to 4% was in a sense the easy part, he says.

Tim expects inflation at 3.5% by mid-2024, but the service side of the economy and tightness in labor markets will make for a difficult journey to the desired 2-to-3% band.

“We’re going to be living with rates at this level probably for 6 to 12 months,” Tim says.

He explains more here

Listen to the full podcast above

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About Tim Hext and Pendal’s Income & Fixed Interest boutique

Tim Hext is a Pendal portfolio manager and head of government bond strategies in our Income and Fixed Interest team.

Tim has extensive experience in banking, financial markets and funding including senior positions with NSW Treasury Corporation (TCorp), Westpac Treasury, Commonwealth Bank of Australia, Deutsche Bank, Bain & Co and Swiss Bank Corporation.

Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.

Find out more about Pendal’s fixed interest strategies here

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About Pendal

Pendal is a global investment management business focused on delivering superior investment returns for our clients through active management.

In 2023, Pendal became part of Perpetual Limited (ASX:PPT), bringing together two of Australia’s most respected active asset management brands to create a global leader in multi-boutique asset management with autonomous, world-class investment capabilities and a growing leadership position in ESG.

Contact a Pendal key account manager

A new generation of weight-loss drugs has the potential to fight the obesity epidemic. Regnan analyst MAXIME LE FLOCH explains more

• Obesity affects one billion people worldwide
• New treatments are showing much greater efficacy
• Find out about Regnan Global Equity Impact Solutions Fund
• Making Money and Making Change: Watch a new webinar with Regnan’s Tim Crockford and former RBA deputy governor Guy Debelle

DEMAND for a new generation of weight-loss drugs such as Novo Nordisk’s WeGovy is soaring — particularly in the US where demand is outstripping supply.

Bloomberg estimates global sales of branded anti-obesity drugs could hit $US44 billion by 2030.

While medications are not the only solution required to combat obesity, “they are one revolutionary step forward in countering the epidemic” noted Scientific American recently.

Some doctors say drugs like Wegovy “could help stem a tide of weight-related conditions such as heart disease or joint pain”.

Sustainable investing leader Regnan, which is part of the Pendal (and now Perpetual) family, is a long-term investor in Danish pharmaceutical group Novo Nordisk.

“We like companies that have a relentless pursuit of continuous innovation,” says Maxime Le Floch, an analyst with Regnan Global Equity Impact Solutions fund.

“We want companies that innovate, have brand awareness and can build a market from scratch,” says Le Floch.

Novo Nordisk develops treatments for serious chronic illnesses such as diabetes and obesity. The two are linked, though obesity is becoming a greater health risk.

A potential treatment for obesity

More than 700 million people are obese — of which around one-third are children, according to the World Health Organisation. 

In the United States alone, more than 40 per cent of adults are obese, and nine per cent are severely obesity.

“Ninety per cent of people with obesity have weight related comorbidities … and half have a combination of health conditions such as diabetes, higher blood pressure, coronary heart disease and risk of stroke,” Le Floch says.

“There’s also increased risk of kidney cancer and colon cancer, digestive problems, liver problems and sleep disruption.”

It has become a major cost to economies with eight per cent of healthcare budgets spent on obesity related medical conditions, Le Floch says.

“Until now there have been two main treatments for obesity – weight loss programs which are difficult to put in place, and the average weight loss is just 5 per cent.

The other option is bariatric surgery which can lead to about 30 per cent weight loss but is very invasive, has associated risks, and is hard to scale to a larger number of patients,” Le Floch says.

“What’s really game changing right now is the rise of drugs that can address obesity,” he says. “One example is Wegovy from Novo Nordisk which has been an incredible success with limited side effects.

“The average weight loss is 15%, with one-third of people losing more than 20 per cent of their weight and prescription trends are skyrocketing. There are already 40 million people in the US with access to Wegovy,” Le Floch says.

“This is a market that has doubled from 2022 and we expect it to grow in double digits in coming years.”

Long-term investment

Regnan has been a long-term investor in Novo Nordisk, impressed with not only the current crop of drugs but also research into new treatments.

“You continue to see a pipeline of impressive innovations in clinical trials showing promising data, including even more effective weekly injectable treatments such as CagriSema, and oral treatments.

“The main issue Novo Nordisk has had recently is keeping up with demand,” Le Floch says. “This year, there were some supply disruptions which have been resolved as the company adds capacity.”

Novo Nordisk is not the only pharmaceutical company in the obesity treatment market. Eli Lilly also has a new treatment.  

“But outside Novo Nordisk and Eli Lilly, it is very hard for competitors to catch up. Pfizer discontinued one of their clinical trials. Smaller players so far have shown very mixed data,” he says.

“Also there is a lot of brand awareness by patients. Patients are coming to their physicians asking for the Novo Nordisk treatment.”

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About Maxime Le Floch

Maxime is an analyst with Regnan’s impact investment team. He focuses on Regnan Global Equity Impact Solutions Fund. Maxime has more than 10 years of experience in sustainable investment. Before joining Regnan he was an investment analyst with Hermes where he helped launch and manage the Hermes Impact Opportunities Equity Fund.

Barbie and Oppenheimer may be breaking box office records right now, but Hollywood is a complex environment for investors. SUE SCOTT explains what to look for

• Movie industry a challenge for investors
• Look for innovation and strong content libraries
• Find out about Pendal Concentrated Global Share Fund

BARBIE is the biggest flick of the year, taking $US155 million in its first three days of ticket sales in the United States.

In Australia, it was the biggest opening weekend for a movie released this year — double the second best.

Investors observing the success of blockbuster films such as Barbie and Oppenheimer may be wondering how to get exposure to Hollywood right now.

But all the hype can’t hide the fact that showbiz is a complex investment environment with actors and writers strikes, a super-competitive streaming market and the potential of AI-generated content.

“For investors, it comes down to the age-old adage, ‘content is king’”, says Sue Scott, senior investment analyst for Pendal Concentrated Global Share Fund.

Sue and the team are investors in NASDAQ-listed Warner Bros. Discovery – the studio behind Barbie – as well as Netflix.

Both own large libraries of content.

Scott believes both Netflix and Warner are well positioned for the current tough environment in Hollywood.

“Thanks to the actors and writers’ strike, the industry is going to have to rely on their content libraries.

“Warner Bros. Discovery have an extensive library of premium content from HBO, HBO Max, CNN, Turner Sports, Discovery Channel, Food Network and Eurosport. We think there’s a lot of latent value in that back content,” Scott says.

“Netflix has ten years under its belt and has the first-mover advantage in streaming. It now has a ten-year premium library built up which is exclusively theirs.”

“Both companies are also innovative around ways to drive incremental revenue beyond a movie ticket or a subscriptions or advertising,” Scott says.

“Take a look at the whole Barbie marketing campaign.”

The outlook for Netflix

Netflix’s recent June quarter results show a 5.9 million increase in subscribers since March, and more than 238 million subscribers globally, though the stock was sold off following the release.

“I thought the number were really good. Netflix has reached a point of being cash flow positive which is unlike many of their peers. And they have the content library behind them.

“Investors were disappointed about the lack of revenue growth. We think Netflix has now reached a level of maturity that you should be more focused on cash flow growth,” Scott says.

“What we want are companies that have a good library of content. Content is king. Netflix and Warner Bros. Discovery tick that box.”

 

 

 

Inflation isn’t under control and the RBA still has work to do, argues Pendal’s OLIVER GE

You can also listen to this podcast on Apple or Spotify

An excerpt from this interview with Oliver Ge, an assistant portfolio manager with Pendal’s income and fixed interest team

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Inflation isn’t under control and the RBA still has work to do, argues Oliver Ge, an assistant portfolio manager with Pendal’s income and fixed interest team

“I think at 4.1% we’re still at least a couple of hikes away,” says Oliver in our latest fast podcast.

“Depending on where wages and inflation prints later this month, I think possibly we may follow the path of New Zealand or the UK into the 5.5%, possibly 6% region.”

Oliver points to three things blunting the impact of rate rises:

“Firstly, the Australian economy is demonstrating a level of resilience that’s greatly surpassed most expectations.

“Secondly, there seems to be a wage-price spiral in certain aspects of inflation that continues to channel within the CPI basket, so it persists at a level that warrants concern.

“Thirdly, despite market chatter about the potential fallout from high interest rates – particularly for mortgage holders – our analysis shows that Australians, on aggregate, aren’t as vulnerable as one might assume.”

Oliver goes into detail in the podcast.

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About Oliver Ge and Pendal’s Income and Fixed Interest boutique

Oliver Ge is an Assistant Portfolio Manager with Pendal’s Income and Fixed Interest (IFI) team.

Oliver works on developing and running key quantitative investment models, and acting as trading support for the Income & Fixed Interest team. Oliver received his Bachelor of Commerce (Finance) from the University of Sydney and is also a CFA Charterholder.

Pendal’s IFI boutique is one of the most experienced and well-regarded fixed income teams in Australia. In 2020 the team won the Australian Fixed Interest category in the Zenith awards.

The invests across income, composite, pure alpha, global and Australian government strategies.

Find out more about Pendal’s fixed interest strategies here

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About Pendal Group

Pendal is an independent, global investment management business focused on delivering superior investment returns for our clients through active management.

Contact a Pendal key account manager

Which companies will benefit from AI technology in the long term? Which are caught up in a short-term frenzy? Pendal global equities analyst SUE SCOTT explains what to look for

• AI has changed investment landscape within months
• Companies ignore AI at their own peril
• Find out about Pendal Concentrated Global Share Fund

WITHIN months, artificial intelligence (or AI) has changed the investment landscape, helping drive the S&P500 into a bull market.

But which companies and sectors stand to benefit from AI technology in the longer term?

Which are just caught up in a short-term frenzy?

The technology has the potential to change every industry, says Sue Scott, a senior investment analyst with Pendal’s Concentrated Global Share Fund.

It’s about much more than investing in companies providing computing power and AI services, says Scott.

It’s about investing in companies that understand AI will become intrinsic to how business runs.

“The genie is out of the bottle. At an enterprise level you risk disruption if you ignore it.

“AI is going to have a significant impact on how all industries operates.”

Signs of a good AI strategy

What does Pendal’s global equities team look for when assessing a company’s AI capabilities?

“We’re looking for signs that the board and management are examining how the technology can improve their products and services and increase productivity,” Scott says.

“It’s not about how many times it’s mentioned on a conference call. It’s about understanding AI.

“Does the board have technical expertise? Are management introducing pilot programs? Are they thinking about the ways they can harness AI to improve productivity? Do they have a robust governance function?

“They’re the sorts of things were asking any of the companies we invest in.”

Look also for companies with a strong Chief Technology Officer, she says.

The CTO role “is becoming increasingly important, whether you’re a technology company, a mining company, or a consumer company.”

AI pitfalls

AI has its challenges too, Scott says.

“Mass adoption means a huge amount of additional computing power is required, which is currently expensive and energy intensive.

“Lots of data storage is required and you need a network robust enough to transport all the information.

“The elephant in the room is regulation. Regulators have shown in the past that they are very slow on the uptake when it comes to new technology,” she says.

Scott says while Open AI’s Chat GPT was only launched late last year, AI has been around for much longer.

“AI is essentially a combination of computer science and data sets that enable problem solving and that’s been happening for years,” she says.

“Think about your first interaction with a chatbot and how that has improved over the last few years. Think about how much better search, Siri and Alexa are.”

“There’s also been huge developments in industrial sectors – autonomous mining trucks, automated fulfillments centres underpinned by AI technology have driven productivity gains, while consumer sectors have benefited from improved online advertising conversion rates.”

A printing press moment

The release of OpenAI’s ChatGPT was a turning point, however.

Scott agrees with founder OpenAI founder Sam Altman’s comment that AI could be a “printing press moment”.

“Right now it’s a load of raw data that generates outputs based on statistical probabilities when prompted. In the future you will see more multi-modality models. It won’t be just text but images, audio and video.

“A ChatGPT-equivalent won’t be writing just the speech, but the slide presentation to go with it. A search engine won’t just give the recipe for a chocolate cake, but also a video explanation of how to make that cake.”

All companies should be thinking about AI and how it can improve commercial outcomes for their business, she says.

 

 

 

Just as mortgage holders locked in fixed rates two years ago, now could be the time to lock in 10-year bonds, argues Pendal’s TIM HEXT in our latest fast podcast

You can also listen to this podcast on Apple or Spotify

An excerpt from this interview with Pendal’s head of government bond strategies Tim Hext:

It looks like RBA boss Phil Lowe’s “got one more hike he’s itching to do” in July or August, says our head of government bond strategies Tim Hext in our latest fast podcast.

“The inflation data should start to turn down from that point,” says Tim.

“The RBA should then use that as a reason to be on pause for the rest of the year.

“Looking further beyond, towards the middle of next year, I think what you’re going to see is potentially the US starting to cut rates early next year.

“With that backdrop, there is a possibility we get lower rates in the second half of next year, even if inflation – and particularly wages – remain a bit sticky.”

For now, Tim argues investors should consider 10-year bonds which are hovering around the 4 per cent mark.

“I don’t think interest rates and cash rates in Australia, though they’re currently 4.1 per cent, are going to be averaging that over the next five or 10 years.

“I think they’ll settle eventually back down in the 2 to 3 per cent band.

“It’s a bit like mortgage holders two years ago should have locked in fixed rates for their mortgages.

“Now I reckon investors ought to consider locking in fixed rates for their investments.”

Listen to the full podcast above

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About Tim Hext and Pendal’s Income & Fixed Interest boutique

Tim Hext is a Pendal portfolio manager and head of government bond strategies in our Income and Fixed Interest team.

Tim has extensive experience in banking, financial markets and funding including senior positions with NSW Treasury Corporation (TCorp), Westpac Treasury, Commonwealth Bank of Australia, Deutsche Bank, Bain & Co and Swiss Bank Corporation.

Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.

Find out more about Pendal’s fixed interest strategies here

---

About Pendal

Pendal is a global investment management business focused on delivering superior investment returns for our clients through active management.

In 2023, Pendal became part of Perpetual Limited (ASX:PPT), bringing together two of Australia’s most respected active asset management brands to create a global leader in multi-boutique asset management with autonomous, world-class investment capabilities and a growing leadership position in ESG.

Contact a Pendal key account manager

Impact investing can be an important source of diversification in a number of ways, argues Regnan’s TIM CROCKFORD

• Impact investing can be a source of diversification
• Small, mid-cap, growth exposure
• Find out about Regnan Global Equity Impact Solutions Fund

IMPACT investment funds can be an important source of diversification in an equity portfolio because of their focus on small and mid-caps – and a tendency towards holding over very long time-frames, says Regnan’s Tim Crockford.

Crockford leads Regnan’s London-based impact investing team, which aims to find listed businesses well-placed to solve the world’s biggest environmental and societal problems.

Typically, these are companies with market capitalisations in the US$1 billion to US$10 billion range.

“Ultimately, as an impact investor you are managing on three dimensions rather than two,” says Crockford.

“It’s not just about risk and return, but also about the positive impact of companies bringing something good to the world.

“As a result, from a strategic asset allocation lens that gives you something very different from what you get with a traditional listed global equity allocation.

“The first level of that differentiation is that it gives you exposure to those smaller and mid-cap companies.”

That’s especially important in 2023 because smaller companies are trading relatively cheaper than their larger counterparts in an inversion of normal patterns driven by the market’s appetite for US mega-cap tech stocks.

“You would normally expect to pay a premium for small companies because they tend to have higher growth rates,” says Crockford.

“But something has changed across 2022 and smaller caps are now trading at a lower PE multiple than large caps.

“These kinds of abnormalities in markets can persist longer than you expect them to persist, but things eventually mean revert — they rarely become the new normal.”

Early access

Crockford says impact investing also offers investors a way to hold growth stocks at an earlier stage than in a traditional portfolio.

The Regnan Global Equity Impact Solutions Fund aims to buy companies at a point when they are seeing a tipping point in demand for their product or service.

“What we do is try to identify businesses where growth rates are starting to tick up,” says Crockford.

“Like it or not, human beings find it very difficult to forecast growth rates that are increasing and compounding.

“That tends to make the market myopic and short term — analysts are trained to take the past and extrapolate that in the future.

“We look for these inefficiencies across our investment universe of environmental and social solutions providers and seek to take advantage of them.

“These are companies that have the potential to grow into large caps over the very long-term holding periods that we have for them.”

Longer time frame

The longer time frame of impact funds is another differentiator from a traditional equity allocation.

“This is a generational opportunity,” says Crockford.

“This is not the FOMO trade of the next six months. This is about finding companies with a structural tailwind for the next decade and beyond.”

As industry, consumers and governments invest to make the world more sustainable, winners will emerge over the next decades from the companies that supply the products and services to enable this, Crockford believes.

To find them, investors need to broaden their horizons beyond the top end of the market.

“We’ve been looking under stones that have not been turned over for a long time to find names that have been forgotten about in areas in markets that have been forgotten.

“This is about identifying individual businesses that have differentiated technology, differentiated services and a differentiated way of doing business.

“That gives them a moat. That gives them the ability to deliver this impactful environmental or social solution in a way that the peers can’t match.

“The fact that they are small now? Look the winners of the last market cycle – we didn’t refer to them as ‘big tech’ back in 2008.”

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About Tim Crockford

Tim Crockford leads Regnan’s Equity Impact Solutions team and is senior fund manager of Regnan Global Equity Impact Solutions Fund. Tim previously managed the Hermes Impact Opportunities Equity Fund after co-founding the Hermes impact team in 2016.