Welcome to our 2021 Autumn edition of Investment Perspectives.

It’s hard to believe it has been nearly a year since the announcement of an effective vaccine gave rise to hopes that the end of the COVID-19 pandemic was potentially in sight. We noted last year the growing disconnect between a haggard global economy and exuberant markets, most notably in equity markets.

Global output and corporate earnings have staged a rapid recovery since the depths of the crisis in 2020 as economies have re-opened and some semblance of normality has returned. In turn, market fundamentals are taking on the baton from extraordinary fiscal and monetary policy and have, at least to some extent, closed the gap between macroeconomic data and corporate health figures and demanding asset class valuations. This is a welcome change following a year spent evaluating the initial impact of the virus, infection rates and the longer-term drag this may place on global growth. Even the potential stumbling blocks have become more traditional, with inflation and geopolitical risks rising up the risk leaderboard.

In our latest edition of Investment Perspectives, Chris Arcari explores this and more in his capital markets update, and explains how the recovery has impacted valuations across the different asset classes. In addition:

• Oriana Mezini explores the longer-term headwinds for the value-factor, discussing two considerations: the growing importance of intangibles and sustainable investing;
• On the topic of sustainability, Kameel Kapitan and Asad Rashid discuss the concept of net zero and how and why it matters for your investment strategy; and
• Simon Jones and Peter Challis discuss and analyse the responses of nine global equity managers to a case study on engagement with an investee company around allegations of child labour in the cocoa supply chain.

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