Economic and demographic strengths have combined to make India the world’s fastest growing major economy for three years running. In 2016-2017, the country’s GDP, ranked seventh globally the year before, is projected to grow by 6.6%. India’s prime minister, Narendra Modi, embodies a “can do” spirit and champions a pro-business environment.
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The 5th edition of the Social Divide index reveals that FTSE 100 companies are sharing more and better financial results-related posts on social media, assembling the right mix of social ingredients to achieve significantly higher levels of engagement than ever before. Indeed, in a clear indication of increasing stakeholder appetite for receiving results-related communication via social media channels, there was a 105% increase in interactions with results content in comparison to 2015.
Since the election, investors have focused on the positive aspects of President Trump’s surprising electoral victory and the end of U.S. legislative gridlock. There will likely be times in the year ahead when the more worrisome, controversial initiatives pushed by the Trump administration will rattle investor confidence—at which point we would view U.S. equities as attractive. Although equity valuations are elevated in the U.S.
The Brexit vote and Donald Trump’s unexpected 2016 election victory have kicked off a wave of pro-nationalist sentiment across the globe. With several key Eurozone countries facing elections in 2017, leading economists and investors envision a possible reshuffling (and even a potential demise) of the European Union. Volatility typically accompanies political transitions, and investors should review their objectives and adjust accordingly. Remember that what goes down often comes back up—eventually.
Wealth does not build itself, but it can be built, nurtured and preserved—not just for you and your generation, but for generations to come. In an unprecedented study into the insights of wealthy families, clear evidence of new wealth management strategies has emerged. There are signs of more inclusive decision-making within the family. Many are looking beyond the balance sheets as they redefine what success means to them. And, importantly, they’re relying more and more on their business acumen to adopt a systematic approach to wealth management.
Fund groups face disruptive developments, as advances in financial technology, often called fintech, continue at an ever more rapid pace. Even as new efficiencies and opportunities blossom, regulators have pushed financial firms to recognize the dangers of technological failures. To prepare for the changes ushered in by fintech, it is important for fund boards, investment managers and separate account advisers to have a deep understanding of the issues and risks surrounding Fintech developments.
Legal developments in digital currencies, including bitcoin, emerge almost on a daily basis across the global landscape. While in Argentina virtual currencies are not legal tender under the country’s National Constitution, in Croatia there are informal statements by the Croatian National Bank that look favorably on the legality of bitcoin. In Estonia, bitcoin income is treated as capital gains, and in Australia, virtual currency transactions are subject to goods and services taxes.
Assuming funds of funds offer nothing in return—or that you get less than you pay for—is a mistake for a surprisingly broad group of investors. That perspective becomes clearer when taking a closer review of the reason investment committees focus their attention on high-level strategic thinking and asset allocation, rather than on picking individual stocks. Similarly, there is a case to be made for investors to use fund of funds, rather than directly selecting individual private equity firms from the thousands of choices available.
After a sharp stock market rally that ensued immediately after Trump’s come-from behind victory, financial markets have moderated as the realities of governing in the real world have begun to sink in. Investors were initially enthused by Trump’s plans to cut corporate and personal income taxes, reduce business regulations, implement a $1 trillion infrastructure program, and negotiate trade deals more favorable to the United States. While supportive of the ideas, Republicans are wondering how all of this will be paid for.
Drive anywhere outside of a major metropolitan area, and you will find roads and bridges in need of serious repair. Talk to business owners, and they will tell you how the difficulty of moving goods from where they are produced to where they are sold hurts their margins. It is time to improve the aging infrastructure of the United States. Regardless of how policymakers decide to finance such a project, the multi-year infrastructure investment will boost economic growth, create jobs and provide a significant opportunity for middle market businesses.