Ten years of outperformance as the electrification era begins
Key takeaways The Ecofin Global Renewables Infrastructure strategy has outperformed sector and global indices in the 10 years since inception with a lower beta. It offers direct exposure to the electrification super‑cycle, which will require substantial investment and offer potentially greater return opportunities. As electricity continues to take share from traditional energy, we believe investors […]
Beyond ‘Quality at any price’
As 2025 ended, Quality stocks were in the grip of their worst period of relative underperformance in 20 years. The rolling one‑year performance of MSCI Quality versus MSCI World had sunk to -10% low in September, a sharp reversal from the highs seen in mid-2024, just before the Federal Reserve began to cut interest rates […]
When politics turns pro-market: Latin America’s reform dividend
A significant political shift towards economic orthodoxy is underway in Latin America, with electorates choosing right-of-centre governments to try and improve economic conditions in their respective countries. Taken together with falling US rates, a weaker dollar and early signs of a new commodities upswing, these changes suggest that last year’s rally in Latin American equities […]
Strike whilst the iron is hot
Here’s looking at you, kid The winter holidays are a time for many different family traditions, but one that seems to be most widespread is using the time off to settle down to a movie – often, a cultural classic. In my case, this year’s film was the romantic icon Casablanca, in which our hero, […]
Emerging and frontier markets outlook 2026: Super cycle redux
2025 marked the first year that emerging markets outperformed the US since 2017. Long-term believers in non-US markets hope this will mark a new period of outperformance to match the near decade-long streak in the first decade of the millennium, when emerging markets (EM) outperformed every year except for 2008, the year of the Global […]
Value’s comeback: A call option on normalisation
There is an abundance of literature that explores the merits of growth and value investing. In recent years, it is well known that exceptionally low interest rates and breakthroughs in technologies like cloud computing and generative AI have driven a strong bias toward growth stocks. With central banks maintaining highly accommodative policies and effectively removing […]
Diversification: Final call?
My conversations with many investors today show that many groups of institutional investors and other larger asset owners are focused on their portfolios’ distance from broad equity indices, such as MSCI World, and are openly trying to close that gap by introducing a range of passive, semi-passive, factor or lower tracking error investment products. To me, […]
Why higher tracking error can mean lower risk
Disciplined, value-driven equity investors may be seeing a rise in tracking error – the measure of how much a portfolio’s returns diverge from its benchmark. While risk systems often flag tracking error as a negative, the true story can be more nuanced. For a strategy committed to consistent, long-term returns and downside protection, an increase […]
Ending the race to the bottom: China’s anti-involution reforms explained
China’s pursuit of anti-involution policies is unlocking new pathways for sustainable, long-term economic growth in more technologically advanced and higher value-added industries. The government is persuading companies to eliminate inefficient operations and supports consolidation to create stronger players, providing robust businesses with the opportunity to thrive in a rationally competitive environment and ultimately guiding China […]
In for free revisited
As value investors, we are always on the lookout for a bargain but there are occasions when the market puts such a low valuation on a business, that you are essentially paying nothing for one part of it. By buying at a discount, this strategy builds in a ‘margin of safety’ and whilst in the […]