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GSI Sustainable Investments Screening and Integration Overview
Our June updated overview of GSI’s systematic ESG integration—screening, reducing fossil fuel exposure, and driving sustainable change – is now available. Read more here
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Garrett, Bernd and Andrew have all featured in a variety of articles, essays and videos, which you can access here:
News
GSI retains status as a signatory to the UK Stewardship Code
We are thrilled to announce that GSI has successfully retained its position as a signatory to the Financial Report Council (FRC) UK Stewardship Code. We are proud to be among the 287 signatories recognised for our commitment to effective stewardship.
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Safeguarding tomorrow: GSI appoints Compliance Manager
GSI has appointed Greg Brown as Compliance Manager reporting to Andrew Cain, Managing Partner. A newly created position in recognition of the importance of ensuring our operations adhere to the latest regulations and are aligned with industry best practices.
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GSI UK Stewardship Code Report 2023
Safeguarding tomorrow: Stewardship with Purpose. Our annual Stewardship Code report offers an in-depth look at our active engagement and voting efforts and details our strategic approach to managing risks and opportunities, reflecting our ongoing commitment to responsible investment practices.
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Engagement Practices
We are very aware of the importance of stewardship and take our role as stewards of our client’s money seriously. This Q&A poses the questions advisors want to know about asset managers commitment to Stewardship. It questions, What we are doing and how does it compare to our peers.
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Carbon Intensity: Value strategies and CO2 emissions
With CO2 emissions continuing to be at the forefront of climate change discussions, Bernd Hanke revisits our analysis of value strategies and carbon intensity. Value portfolios are likely to be exposed to companies with high carbon emissions. Therefore value investors need to limit exposure to those companies in their investment process.
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GSI joins climate change coalition
We are excited to share our next step in GSI’s pursuit of responsible and sustainable investing and announce GSI’s membership of the Institutional Investors Group on Climate Change (IIGCC).
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Reaching new heights: GSI surpasses £500 AUM milestone
We are delighted to share that our Assets Under Management (AUM) has surpassed the £500 million milestone. As a boutique asset manager, we believe reaching this level demonstrates the growing support and belief in the GSI process. We are passionate about our commitment to systematic and sustainable investing. Through our investment strategies, we aim to … Continued
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The impact of Markowitz: An interview with GSI
With Markowitz’s sad passing, we explore some of his key insights. Markowitz emphasised the importance of risk when thinking about portfolios. Before Markowitz, academic finance was solely about expected returns. Learn how GSI continues to explore the best trade-off between the expected return of a portfolio and its risk.
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Expanded platform availability
Last year we increased our platform exposure to meet the demand and needs of our growing client base. Our funds can now be found on 29 UK platforms. We have extended our reach even further with both GSI funds available on Moventum, a European-based platform supporting your international and expat clients.
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GSI 2022 UK Stewardship Code Report
GSI are very excited to share our 2022 Stewardship report. We have enhanced our stewardship efforts by actively voting, joining coalitions, and collaborating. We have applied but are not yet signatories to the Code, but believe that this report demonstrates our commitment to being responsible stewards of our clients’ investments.
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The case for sticking with equities
Is History Repeating Itself? Robin Powell takes a look at the differences between 2008 and today’s market. At these times there is a temptation to react to the noise, de-risk from equities and reduce exposure to sensitive sectors. However, history shows that markets tend to reward patient investors who stay calm and rational.
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US regional banking shock
What does the collapse of Silicon Valley Bank (SVB) and Signature Bank, and the subsequent sudden price shock of financial firms in the US and elsewhere, mean for GSI investors?
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Global investing and the effects of foreign currency exposure
Last year’s confidence crisis in the UK economy, and the subsequent fluctuating pound, produced ‘noisy’ currency movements for global investors. This led us to revisit the question – What does it mean for UK Investors to have foreign currency exposure?
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The ESG debate: What shade of green are you?
In our latest ESG viewpoint, Robin Powell explores the tribal nature of ESG Investing and whether sustainable investing is an unstoppable force. ESG investors are often classified as dark green or light green. Robin is a self-confessed ESG moderate – preferring mid-green – and his view is that most investors are also.
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Investing in equities during raging inflation: 4 things to know
Most people don’t like inflation. Whether you’re Chancellor of the Exchequer, a small business owner or just a householder trying to make ends meet, rising prices are never welcome. No wonder Ronald Reagan called it “as violent as a mugger, as frightening as an armed robber, and as deadly as a hit man”.
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Helen Wiggs from ShareAction on Shareholder Coalitions
Welcome to the third episode of the GSI Podcast, from Global Systematic Investors, presented by financial journalist and author Robin Powell. In this episode we’re going to look at Shareholder Coalitions. Joining Robin is Helen Wiggs from ShareAction. ShareAction is a charity that promotes responsible investing and works to improve corporate behaviour on environmental, social, … Continued
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Paul Hewitt from Minerva Analytics on Active Owership
Welcome to the second episode of the GSI Podcast, from Global Systematic Investors, presented by financial journalist and author Robin Powell. In this episode we’re going to look at Active Ownership. Joining Robin is Paul Hewitt from Minerva Analytics. Minerva is a Solactive company and is a financial technology firm specialising in proxy voting, and … Continued
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Best of Both Worlds Deep Factor Tilts Invested Sustainably
GSI launched the GLOBAL SUSTAINABLE FOCUSED VALUE FUND in June 2021, growing to over £165m in 9 short months.
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Eoghan Gill from Sustainalytics on ESG ratings
Welcome to the very first GSI Podcast from Global Systematic Investors, presented by financial journalist and author Robin Powell. In this episode we’re going to look at ESG ratings. What exactly are they? How do ratings agencies form conclusions? And, how reliable are those conclusions from the investor’s point of view? Hello and welcome to … Continued
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Russia Invasion of Ukraine
On 24 February 2022, Russia launched a large-scale invasion of Ukraine, marking a dramatic escalation of the conflict between the two countries that began in 2014. The war has already inflicted widespread destruction on Ukraine and it is causing a major humanitarian disaster.
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Fee Reduction: Global Sustainable Value Fund
Effective from 1 December 2021, there will be a reduction in fees for the Global Sustainable Value Fund. The GSI Annual Management Charge has reduced from 30bps to 20bps and total estimated OCF will move from 50bps to 36bps.
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Its Aim, It Says, Is “To Impact The Lives Of Our Clients, Our Community And Our Team For The Better, Forever.”
One of the financial planning firms that are putting ESG at the heart of its business and investment process is Paradigm Norton. Based in Bristol, the firm serves more than 1,400 families and employs around 85 people.
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ESG — The only thing I would say is do not ignore it: Sam Adams (Part 2)
The idea that if you want to invest sustainably you need to use a traditional active manager is nonsense. That’s the view of SAM ADAMS, the former Head of Financial Adviser Services for Dimensional in Europe. Sam now runs Vert Asset Management, a consultancy based in California that works with financial advisory firms on developing … Continued
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Passive and ESG — two huge revolutions with one big difference: Sam Adams (Part 1)
SAM ADAMS is well known to financial advisers in the UK. He spent 17 years with Dimensional Fund Advisors, most of them in London, and started DFA’s European operation. Now based near San Francisco, Sam’s professional focus these days is on ESG. Vert Asset Management, the consultancy firm he runs with his wife Sarah, helps … Continued
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Low-Carbon Designation Awarded By Morningstar
Yes, we have managed to achieve the Low Carbon designation, as awarded by Morningstar. As Value investors, I can tell you that is quite some achievement.
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Adviser Insights Craig Burgess (EBI) (Part 2)
GSI is pleased to be collaborating with the Midlands-based investment manager EBI Portfolios on a new range of evidence-based ESG portfolios. EBI is bringing out three so-called Earth Portfolios next month.
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Adviser Insights Craig Burgess (EBI)
GSI is pleased to be collaborating with the Midlands-based investment manager EBI Portfolios on a new range of evidence-based ESG portfolios. EBI is bringing out three so-called Earth Portfolios next month.
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Adviser Insights Ben Sherwood (Satis) Part 2
In a second interview, Satis Director BEN SHERWOOD explains why Satis decided to embrace sustainable investing and how the move has been widely welcomed by the firm’s clients.
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ESG Risk Ratings
We recently transitioned our investment process from standard ESG ratings to ESG risk ratings, both provided to us by Sustainalytics – one of the industry leaders in sustainability data.
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Adviser Insights Ben Sherwood (Satis)
One of the first financial planning businesses to include GSI’s Global Sustainable Value fund in its investment proposition was Satis Wealth Management, based in London.
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Adviser Insights Mark Vail (Part 2)
ESG funds saw huge inflows in 2020, as companies with the top ESG rankings comfortably outperformed those with lower rankings. Some analysts have welcomed the gap in valuations, seeing them as validation of the idea that listed companies should pay attention to the needs of all stakeholders — including employees, customers and wider society.
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Adviser Insights Mark Vail RockWealth
According to a recent survey by Schroders, the number of financial advisers who include ESG factors in their fund selection process is now 74%. Schroders describes it as a “sea change”.
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The recent performance of growth and value stocks
In 2020 growth stocks had a higher return than value stocks, yet again. As we outline in this article, this was largely driven by the so-called FAANG stocks and a few key companies – notably Tesla.
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The Large Scale Reallocation Of Capital
We often read about the risks of ignoring climate change. Unbearably hot weather, droughts, wildfires, floods, mass migration, starvation, civil unrest, wars — the dangers are numerous and severe.
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A pivotal year for values-based financial advice
2020 will doubtless be remembered most of all for the coronavirus pandemic. But new research from the United States suggests it has also been a pivotal year in the evolution of values-based financial advice.
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Tackling Greenwashing
Financial advisers sometimes tell us that although they agree with the principle of sustainable investing, they’re sceptical about the claims that some companies, including asset managers, make about their ESG credentials.
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Big Companies, Big Returns?
The top companies by market capitalisation tend to be growth companies that attract a lot of media attention. As growth stocks they have lower returns on average than smaller companies and value stocks and also below-market returns.
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Value Strategies and GHG Emissions
Value investors need to be aware of the fact that their portfolios can be highly exposed to companies with high greenhouse gas (GHG) emissions, one of the main factors contributing to global warming.
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The Evolving Client Relationship
Researchers found that 76% of clients would like their portfolios to reflect their personal values — for example, their concern for the environment or their belief in social justice. However, just 44% of advisers say that clients express such a preference.
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What Does The Latest Evidence On Value Metrics Tell Us?
In this article, we would like to explain, in simple terms, the way we measure value, which is an important part of our investment process.
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Does more stock names mean greater diversification?
Diversification matters but what guide do investors have to indicate a fund’s level of diversification? In this brief note we point out that the standard measure can be misleading, and we propose an alternative.
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Webinar: Elroy Dimson on Coronavirus and the Markets
Elroy Dimson: Six things investors need to know about the downturn. Do stock markets have further to fall? How long and severe will the recession be?
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Elroy Dimson on coronavirus and the financial markets
Professor Elroy Dimson is someone who understands more than just about anyone else alive today how financial markets have responded to economic shocks throughout history.
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Some Perspective On Market Turmoil
The effect of the coronavirus on the world economy will be a significant downturn in growth.
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Coronavirus Brief
Investors are concerned about the effect the coronavirus outbreak may have on their savings. In turn, markets have fallen sharply as the virus has spread outside China.
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The expected return of the value premium
At the end of the decade, growth stocks traded at a substantial premium to value, likely creating a tailwind for the future relative returns of value stocks.
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We have made our website interactive. Enjoy!
We have turned some boring data into something engaging and interactive. I hope you enjoy it as much as I have!
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It seems we have become very tribal
We like to polarise people. And we instinctively identify with those who appear to share our views. But people are far more complex than that.
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Is Value the Whole Story?
Value and profitability factors form an extremely attractive combination. We illustrate the strong diversification benefits of combining them.
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The Values-Based Adviser Conference Birmingham April 23
Advisers who thought that sustainable (or ESG) investing was a passing fad need to think again.
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Global Sustainability Value Fund Euro Share Class
As a result of client demand, We are delighted to announce that we will be adding an additional share class to the Global Sustainable Value Fund.
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What I learned at the TEBI event
A big thank you to Robin Powell of Regis Media, who compered the event and helped to make the day run so smoothly.
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Comparing Value Metrics
It is widely accepted that there is a Value effect in stock returns and that, in the long run, there is a premium for holding Value stocks. A key question is how best to define Value.
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What is value and how should it be measured?
Value strategies, in general, go back a long time. But where is modern consensus now amongst academics?
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Where has the Value premium gone?
There has been a lot of commentary recently on the fact that value has been underperforming growth
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Are we obsessed with Brexit?
2019 will doubtless go down in history as the year that Britain became obsessed with Brexit. Just now, there seems to be no escaping it.
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GSI August Fund Update. New Share Class Offered
We are launching an additional Class B accumulating shares. Available from 3rd September.
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A very brief history of Sustainable Investing
Sustainable investing is a relatively modern idea. Its roots, however, go back to the eighteenth century.
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What I learned at The Values-Based Adviser Conference Leeds
The event went extremely well and the questions and feedback we had on the day, from the advisers who attended was extremely valuable.
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Albion Governance Update – Incorporating ESG Investing
Q&A with Max Tennant and Garrett Quigley
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Can Sustainability Help Deliver Strong Financial Performance?
Sustainability or Environmental, Social and Governance (ESG) has become an increasingly popular topic in investment management.
VIEWEssay
Integrating Sustainability with Factor-Based Investing
There has been widespread adoption of sustainable approaches to investing over recent years.
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Sorry, Active Managers – Indexing will get even better
Summarising recent empirical evidence on equal sector-weighted portfolios in the UK.
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How Smart is Factor Investing and Smart Beta?
A brief overview of factor investing and smart beta, as well as the pros and cons associated with these approaches.
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Will Value Investing Make a Comeback?
Value as an investment style has underperformed Growth for a number of years. In this piece we illustrate that the spread…
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Value Investing
Discussing value as an investment style relative to growth in the current market environment.
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A Simple Diversified Portfolio Strategy
We present asimple portfolio construction approach which is a blend of….
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Capturing the Key Return Drivers
Discussing alternatives to traditional market-weighted approaches to global equity investing.
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The Small-Cap Dilemma
Examining the benefits of small caps as an asset class as well as the challenges associated with it for institutional investors.
VIEWEducational Videos
Here are some educational videos which we’ve made or featured in, which help to explain some of the principles which make up our investment approach:
GSI – Beyond the Cap-Weighted Index
Dr. Nick Motson of Cass Business School discusses issues with investing in market-weighted index portfolios, which tend to be heavily concentrated in a small number of mega-cap stocks. Alternative, more diversified approaches have generated superior risk-adjusted returns in the past, mostly due to their exposure to value and size factors.
A Dummy’s Guide to Smart Beta, part three
The term “beta” was first introduced by Nobel Laureate William Sharpe in the 1960s. In simple terms, it denotes the risk of the stock market. But in the intervening half a century, several other risk factors have been identified and quantified. Features Garrett and Bernd on GSI’s model, which increases diversification in a cap-weighted portfolio to smooth out the highs and lows.
Passive Investing Theory, part four: Portfolio Theory
Diversification has been called ‘the only free lunch in investing’ and is the driver behind Portfolio Theory, developed in 1952 by Harry Markowitz and later expanded upon by William Sharpe in his Capital Asset Pricing Model, and Eugene Fama and Kenneth French in their Three Factor Model. With contributions from Garrett and Bernd.
Passive Investing Theory, part two: The Random Walk
Exploring the foundations of passive investing and the men who brought it to global significance. This video describes the Random Walk theory: the belief that share prices are not predictable as they are based on reaction to information that is being fed into the market completely randomly. Features Bernd, alongside other industry specialists.