Professional investors have long touted the benefits of investing globally in order to expand the opportunity set and diversify the portfolio beyond home country borders. However, investors have largely overlooked a more attractive subset of international equities: small capitalization stocks. Their returns have significantly outpaced large cap international stocks over long time frames with only slightly more risk. There is a case for why small cap international stocks should have a place in every global investment portfolio.
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As the realities of digital change, evolve, and grow, the CIO position has become more critical. The CIO as “IT operator” is a construct of the past. The role has evolved to include business strategy co-creator, change instigator, and innovator. Successful CIOs operate in an environment of cohesive collaboration to bridge the long-standing barriers between business and IT in the race to deliver customer and business value. In a time of near constant disruption in the digital world, CIOs are recognizing the importance of taking on a new mantle—that of trusted partner.
According to the 2018 Global Risks Report, cybercrime is the top risk for business leaders in advanced economies, as well as the risk most likely to intensify. In fact, with the rising frequency of data breaches, cyber risk is now a common exposure for individuals, families, family offices, and their related enterprises.
After an extended period of isolation, China underwent an economic reform by opening up to the international community and foreign investment. The country moved fast to catch up with the developed world, and the new way forward—“socialism with Chinese characteristics”—has made China more vital, creative, and economically free. Yet, when it comes to investment, major institutional investors in the developed countries, especially in the North America, are very much underweight China in their portfolios, directly or indirectly.
CFOs are feeling the rising pressure of leveraging new technology, such as cloud computing, robotic process automation, and various analytical tools, to improve the performance of their organizations. Beyond the basics, the finance organization needs to be a driver in implementing new technology to better manage financial and business information used throughout the organization.
There is a growing acknowledgment that government and philanthropic sources of capital will likely fall far short of what is needed in the coming decades to solve the pressing social and environmental challenges of our time. Hence, many investors are eager to find ways to generate positive impact through their investments.
In light of the recent severe weather events around the world, the Intergovernmental Panel on Climate Change’s Special Report on Global Warming of 1.5°C has caught the attention of the media and the public.
The past couple of years have proven to be banner years for private equity and merger and acquisition activity, with no signs of slow down in 2019. With cash on hand to invest and the increase in Representation and Warranty Insurance policies, forecasters expect these trends to continue. Podcast host Michael Cohen is joined by Luca Salvi to discuss the current state of the M&A and private equity trends in the United States.
Across the world, philanthropy is undergoing a transformation that offers both exciting opportunities and complex challenges. With so much in flux, emerging donors and established funders are seeking new models not only for funding strategies and impact measures, but also for organizational design and management systems that will serve them well into the 21st century.
As an investor with assets primarily in the United States, you are probably weary of following the trials and tribulations of the Brexit drama in the United Kingdom. Since the British electorate voted back in June 2016 to withdraw from the European Union, negotiators for both sides have worked feverishly to address the will of the people without undue damage to economic activity and global trade. As the deadline looms, should we be worried about the economic fallout from a so-called “hard Brexit”?