ESG investing, China’s (in)stability, and traditional alpha sources

Three themes have shaped the market in September: the fate of ESG Investing, the growing instability of the Chinese economy, and the search for alpha among traditional assets. 

Is the growing scepticism towards ESG investing justified? The answer depends where you look. Fund flows into ESG products appear to have slowed down. But there is evidence that ESG investing does indeed produce results.

Meanwhile, the world’s engine for growth has been coughing up alarming data lately. China’s economy is not healthy. How can investors prepare for a potential global downturn because of this?

Finally, the need to generate attractive returns remains paramount. In September allocators have looked back at the traditional duo of bonds and equities for opportunities. In the current environment, which of the two asset classes should be preferred?

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