British consumers have got used to seeing traffic light colour coding on packaged food in the shops. A green spot is supposed to entice customers by indicating the food has less fat, sugar or salt, while a red one is meant to warn you away from the most delectable junk foods. It may work on the pages of behavioral economics textbooks but it’s been a lot less effective for gluttonous shoppers in the real world.
Nevertheless, the Securities and Exchange Board of India (Sebi) has decided to apply the same concept to mutual funds. Continue reading »
When it comes to passive or active investing – ie selective stock picks vs index tracking – there’s a big difference between companies based in emerging markets, and their counterparts in developed markets.
You might think that investors in emerging market companies would be in the “pick-and-choose” camp – index tracking is more common in developed markets, surely, and the companies are better known? Actually, it’s the other way round. Continue reading »
What price a reputation? Earning a good one takes time. Losing it can take a moment. So some of the biggest companies based in Brazil, Russia, India and China may not be pleased to read a report issued this week by RepRisk, a consultancy that calls itself “the leading provider of business intelligence on environmental, social and governance (ESG) risks”. Continue reading »
Not every company would be happy to have a prominent right-wing extremist on its roster of clients. But for Topsgrup, India’s largest private security company, Bal Thackeray – leader of the Hindu nationalist Shiv Sena political party and one of the most powerful men in Mumbai before he died this month – was just an ordinary Joe. Continue reading »
Hold steady – the risk / reward balance is tipping. The Brics are now being termed “safe haven” markets and grouped with the UK, US and Germany.
For some time emerging markets have attracted multinational companies with the promise of higher returns. This draw used to come with higher risk – but the perception of that risk is now shifting. Continue reading »
The inexorable rise of the Brics – in terms of growth, at least – hasn’t made them any safer from destabilising risks. In fact, they are just as exposed to global risks as they were before the 2008 financial crisis. And given the prospects for world growth are largely pinned on these economies, it’s a worry.
That’s the conclusion of the Global Risks Atlas 2012 by Maplecroft, a risk advisory company. The Brics are exposed to global risks which “could undermine their investment potential”. So what are they? Continue reading »
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