Tuesday 25th November 2014
NEWS TICKER: TUESDAY, NOVEMBER 25TH 2015 - Morningstar has downgraded its Analyst rating for the Fidelity European Opportunities fund to Neutral. Jeremy Beckwith, director of manager research, Morningstar UK comments: “We have assigned the Fidelity European Opportunities fund a Morningstar Analyst Rating™ of Neutral. The fund had previously been placed Under Review following the fund’s management change announced in the summer. It was previously rated Silver. Alberto Chiandetti—who has gained most of his investment experience in the Italian market—took over from former manager Colin Stone on 1 October 2014. He is also responsible for two single-country strategies: Fidelity Italy since 2008, which has a Morningstar Analyst Rating of Silver, and Fidelity Switzerland since 2011, rated Neutral”. According to Beckwith: “This is Chiandetti’s first time running a European mandate and we expect to see him bring in relevant changes to the strategy. Over a full market cycle, he has proven able to execute his process well at the helm of Fidelity Italy; that said, his past results are not fully relevant for this product, given the differences in the investable universe and the opportunity set compared to the country funds. We have therefore assigned a Neutral rating to reflect the uncertainties surrounding the future of this strategy.” - Among the five China ETFs listed on Singapore Exchange (SGX), the three most active China ETFs in the 2014 year-to-date have been db x-trackers CSI 300 UCITS ETF, db x-trackers MSCI CHINA INDEX UCITS ETF, and United SSE50 China ETF. These first two are traded in US dollars, and the latter in Singapore dollars. These three China ETFs are synthetic ETFs that use derivative instruments such as swaps to track the reference index as compared to physical ETFs that hold the securities or assets of the reference index. These three ETFs generated an average 2014 year-to-date total return of 8.4% - The Straits Times Index (STI) ended +4.46 points higher or +0.13% to 3344.99, taking the year-to-date performance to +5.69%. The FTSE ST Mid Cap Index gained +0.21% while the FTSE ST Small Cap Index declined -0.47%. The top active stocks were SingTel (+0.26%), Olam Intl (-2.27%), DBS (+0.20%), ComfortDelGro (-2.71%) and CapitaLand (+0.30%). Outperforming sectors today were represented by the FTSE ST Technology Index (+1.14%). The two biggest stocks of the FTSE ST Technology Index are Silverlake Axis (+2.40%) and STATS ChipPAC (-1.11%). The underperforming sector was the FTSE ST Basic Materials Index, which declined -0.84% with Midas Holdings’ share price declining -1.70% and Geo Energy Resources’ share price unchanged. The three most active Exchange Traded Funds (ETFs) by value today were the IS MSCI India (-0.77%), SPDR Gold Shares (+0.43%), STI ETF (unchanged). The three most active Real Estate Investment Trusts (REITs) by value were Suntec REIT (+1.58%), Ascendas REIT (+1.76%), CapitaMall Trust (+0.25%). The most active index warrants by value today were HSI23800MBeCW141230 (unchanged), HSI23600MBePW141230 (-3.23%), HSI24400MBeCW141230 (unchanged). The most active stock warrants by value today were DBS MB eCW150602 (-2.96%), OCBC Bk MBeCW150413 (+1.08%), UOB MB eCW150415 (+6.25%) - Inter-American Development Bank (IDB) is providing financing under a Regional Public Goods Programme (RPG) that will be managed by Caribbean Export Development Agency in its capacity as the Secretariat for the Caribbean Association of Investment Promotion Agencies (CAIPA. The IDB has provided US$900.000 to CAIPA to support several initiatives geared towards increasing foreign direct investment (FDI) into the Caribbean and will be implemented over a two year period - Mexico has posted record FDI of $35.2bn inflow in 2013, nearly double the level seen in 2012, mainly due to Belgian brewer Anheuser-Busch InBev's acquisition of Mexican beer giant Grupo Modelo, which brought in over $13bn, according to figures released by the economy ministry - Eight Italian regions have hired banks to manage a round of bond buybacks for them, the treasury said on Tuesday, in a move aimed at giving indebted local administrations more time to repay their loans. Abruzzo, Campania, Lazio, Liguria, Lombardy, Marche, Piedmont and Puglia have hired Barclays, BNP Paribas, Citigroup and Deutsche Bank to manage any offers to buy back their bonds.

Policy intervention needed as momentum stalls on ‘sustainability’ says new Aviva Investors’ report

Monday, 18 June 2012
Policy intervention needed as momentum stalls on ‘sustainability’ says new Aviva Investors’ report Trends in Sustainability Disclosure: Benchmarking the World’s Composite Stock Exchanges, a report produced by Aviva Investors in partnership with CK Capital, reveals that while a number of European stock exchanges reflect a high level of integrated sustainability reporting from constituents, only 52 companies out of 4,001 mid large and mega caps around the world engaged in ‘complete’ first generation sustainability disclosure in 2010.  The paper has been prepared for the Sustainable Stock Exchange 2012 Global Dialogue, hosted by UNCTAD in Rio. http://www.ftseglobalmarkets.com/

Trends in Sustainability Disclosure: Benchmarking the World’s Composite Stock Exchanges, a report produced by Aviva Investors in partnership with CK Capital, reveals that while a number of European stock exchanges reflect a high level of integrated sustainability reporting from constituents, only 52 companies out of 4,001 mid large and mega caps around the world engaged in ‘complete’ first generation sustainability disclosure in 2010.  The paper has been prepared for the Sustainable Stock Exchange 2012 Global Dialogue, hosted by UNCTAD in Rio.

The report says that while the majority of the world’s mid, large and mega-caps engage in some form of first generation sustainability reporting, it is now clear that the proportion of companies voluntarily disclosing each of the first generation indicators is slowing. Steve Waygood, chief responsible investment officer at Aviva Investors, says, “Investors are increasingly demanding sustainability information from companies to inform their broader decision making, deepen the quality of market information available and ultimately the quality of our capital markets, so this decline is cause for concern. Our study shows a clear divergence across exchanges and sectors on the level of disclosure on sustainability issues and growing evidence of a slowdown in the uptake of sustainability reporting practices.  This reflects the lack of a co-ordinated reporting framework.”

“We see a real opportunity for policymakers to step in and define a common set of sustainability indicators. The Corporate Sustainability Reporting Coalition launched last month, which represents investors with assets under management of approximately $2trn, is urging all nations at Rio+20 to commit to develop an international policy framework. This framework should look to foster the development of national measures requiring, on a report or explain basis, the integration of material sustainability issues within the corporate reporting cycle of all listed and large private companies.” Doug Morrow, Vice President of Research at CK Capital and lead author of the report, adds: “This study shows that while the majority of the world’s largest companies by market capitalisation report some first generation sustainability indicators, the ‘actionability’ of this data for investors and other stakeholders is constrained by a lack of completeness, standardisation and timeliness.”



The wonder of it all is that with all the problems companies face right now in finding new business opportunities and markets that any investors are insisting on these kinds of constraints.  However, be that as it may, the report ranks the world’s composite stock exchanges* according to the sustainability disclosure practices of their listed companies.  The report investigates disclosure rates and timeliness for a range of seven “first generation” sustainability indicators:  energy, greenhouse gas (GHG) emissions, water, waste, lost time injury rate, payroll costs and employee turnover.

In a ranking of the world’s composite stock exchanges by overall sustainability disclosure, the Netherlands comes out on top, with Denmark (2), Finland (3) Spain (4) and South Africa (5) also in the top five. The Nordic countries rank particularly well with four countries appearing in the top ten. The two emerging market exchanges that score well are South Africa (5) and Brazil (9)**. 

Certain countries are also excelling in disclosure around particular “first generation” indicators with: 

Finland scoring the highest disclosure rate on four of the seven indicators: payroll data (91%), waste (83%), energy (78%) and GHG emissions (52%) South Africa has the fastest growing disclosure rate, ranking first in five of the seven indicators: water, waste, GHG emissions, employee turnover and lost time injury rate

Companies trading in Denmark are the world’s most timely sustainability reporters; 57% of all large companies on the Danish composite with a Q4 2011 financial year end had published 2011 sustainability data by 1 May 2012

Overall, financial companies had the lowest sustainability disclosure of all industries, ranking last on five of the seven indicators; energy, GHG emissions, water consumption, waste and lost time injury rate 

Utility companies came out on top in most indicators and ranked first on disclosure around GHG emissions, water consumption, waste and employee turnover

Regionally, Europe and South East Asia scored highest as being the quickest to market with sustainability data. Waygood concluded: “Markets are driven by information. If the information the market receives is short term, then these characteristics will define the way these markets operate. It is time for regulators to act.”

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