Those investors who have opted to incorporate ESG and climate issues into
their portfolios will emerge from the crisis
with even greater faith in their convictions
and all the keener to take more action for
the future. New investors will undoubtedly soon join the movement to transform
our economies in the name of sustainable
development. Or at least we can hope so.
Lyxor's L/S Equity Neutral peer group was down -2.8% year-to-date, hurt by extreme trading conditions and the
constituents' average market beta of 20%. The environment has been challenging for the strategy amid extreme stock
volatility and unsettling heavy systematic trading volumes.
Yesterday was a historical day in the oil market. The American market, called West Texas Intermediate (WTI), moved to minus USD40—a fantastic move. The reason for this is likely connected to storage issues as people are consuming far less fuel amid the quarantines.
The old adage “money makes the world go round” has never rung
so true. In the investment world, money translates into corporate
earnings and cash flows, which analysts have used for years to
value companies.
If we look back to the start of the year, climate change was very much at the top of the
investor agenda, said Charlie Thomas, Head of Strategy, Environment & Sustainability.
However, it's fair to say that COVID-19 has knocked it off the top spot, and rightly so,
as it requires an immediate focus.