Insights

Despite double-digit gains for the MSCI World index, geopolitical gloom, notably trade wars and Brexit, hangs over investors, economies and the share prices of more economically-sensitive companies.

Amidst increasing concern over deteriorating economic growth, geo-political uncertainty and the prospects of tightening monetary policy, global equity and credit markets threw a temper tantrum towards the end of 2018. 

As a long-term value manager Mondrian Investment Partners has always believed in carrying out analysis which captures all potential material risks and opportunities; understanding and integrating the impacts of ESG factors has therefore consistently been part of our long-term modeling.

As a result of our thorough bottom-up analysis and incorporating all a variety of factors into our long-term dividend discount valuation, we concluded the stock was significantly undervalued with an attractive skew of returns and a reasonable worst case scenario.

Nearly a decade into an economic recovery marked by low yields and stock market volatility, wary investors are still struggling with where to allocate portfolio assets for stable, long-term returns.

Since the US stock market has outperformed international equities for nearly a decade, some investors may falsely believe that owning non-US stocks no longer offers the performance-enhancing advantage it once did.

Mondrian’s Global Fixed Income and Currency Team explains how our investment process has been able to produce the consistent returns and why they expect to be able to continue doing so.

If an investor truly wants to make a positive impact on the world then they should reward and deploy capital to those markets that are striving to improve in terms of ESG criteria rather than just those that already score highly.

As a value manager, Mondrian Investment Partners has always believed in conducting analysis that captures all potential material risks and opportunities; understanding and integrating the impacts of ESG factors has therefore consistently been part of our investment process.

At the African National Congress (ANC) election in December 2017, Cyril Ramaphosa was elected as the new leader of the party, replacing the ineffective and corrupt incumbent Jacob Zuma. Pure relief at a change of leader led to such exuberance in financial markets that the phrase ‘Ramaphoria’ was coined.