Annemarie Dalka

The worrying events in #georgia have led to sharp falls in Georgia Capital and Bank of Georgia (CGEO and BGEO), two LSE listed companies that are based in that country. BGEO in particular has been a great performer over recent years and was the second largest holding in JP Morgan's UK Small Cap Growth and Income Fund (JGGI), the last time they reported their top 10 holdings. It highlights how complex the whole "Brit ISA" concept is. I think the best approach is to say that a company listed in the UK is eligible for the Brit ISA, wherever it does business. That will support the entire UK market and the professional infrastructure that supports it, and hopefully lead to an improvement in valuations in the UK market that benefits everyone. Of course it is possible to target things more effectively, but that will introduce another layer of cost that benefits nobody, as an army of compliance officers tries to decide whether ARM (mainly based in Cambridge but listed in the US) or BP (mainly listed in UK but most operations overseas) are UK companies or not, and what happens when a clearly UK company is taken over by a global company etc. Keep it simple.

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Our latest blog, written by Michal Bartek, CFA, reviews recent industry research on the complex link between #ESG factors and #investment returns 💡 #SustainableInvestment strategies that performed well in the decade leading up to February 2022 have since faced headwinds due to the events in Ukraine and rising oil prices, denting some of the strategies’ relative performance. However, the blog suggests that the previously reported positive link between ESG characteristics of stocks and their earnings fundamentals is further supported in more recent studies. It also summarises recent industry reviews of the extensive academic work 📖. Those reviews point out the numerous factors that complicate efforts to reach conclusions about the relationship between ESG and stock returns. Read the blog: https://ow.ly/wYui50TvgKu If you'd like to learn more about the topic, Michal will be attending #PRIinPerson in October. While in-person ticket sales have ended, you can still purchase a digital pass. 💻 His session, 1F: Learning from others: Incorporating sustainability issues into financial analysis, will explore processes, practices and examples of how #sustainability is implemented in the identification of material issues, gathering of data and its use in investment analysis, forecasting, valuation and investment decisions. Learn more about PRI in Person and buy your digital pass here: https://ow.ly/pJGW50TvgNO

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The international rating agency Fitch Ratings has affirmed the long-term issuer ratings of the Development Bank of Kazakhstan JSC in both foreign and local currencies at «BBB/Stable». Fitch highlights DBK's critical role as one of Kazakhstan's key development institutions, tasked with financing non-resource sectors to reduce the country's reliance on raw material extraction. In the coming years, according to the agency's forecasts, DBK is expected to place greater emphasis on supporting industrial, environmental and infrastructure projects. Additionally, the Bank's long-term ratings on senior unsecured debt obligations have been reaffirmed at «BBB». It is worth noting that DBK continues to maintain ratings aligned with Kazakhstan's sovereign ratings: BBB- with a «stable» outlook from S&P and Baa2 with a «positive» outlook from Moody's.

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Ca. 300 registrants and 170 active participants with a lot of questions in our BAI webinar and comments indicate that Art. 8 Taxonomy as well as CSRD / ESRS / PCAF reporting is quite a hot topic for EU LPs. Big thanks to Lars Bauschus (LVM Versicherung) who showed why this topic is so important for a EU CSRD / Taxonomy investor and how auditors treat it. Based on his overview, they would require the BAI ESG Template no later than December 2024 for the year 2024 (based on the latest available data). Great organisation from Bundesverband Alternative Investments e.V. as always. If you missed the webinar, please find the slides here: https://lnkd.in/eHjBTYEr You can also watch the webinar on youtube: https://lnkd.in/eJTGzsj6 The BAI ESG Template 2024 can be downloaded for free here: https://lnkd.in/ekKf97YU Jegor Tokarevich Frank Dornseifer Roland Brooks Florian Bucher

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🆕📚What are the pathways for Romania’s economic decarbonisation? EPG’s latest publications, prepared alongside Carbon-Free Europe and Evolved Energy Research, show how current strategic documents can be enhanced through more comprehensive and detailed plans for implementing cost-optimal decarbonisation pathways, backed by clear policy and financing instruments. The new publication package includes a policy paper outlining eight scenarios for decarbonising Romania’s economy, along with two “deep dive” papers covering specific and essential decarbonisation measures: #hydrogen and #CCS. 🔋 🔧Based on the results of a modelling exercise conducted using the Annual Decarbonisation Perspective (ADP), the policy paper examines both the trajectory of Romania’s current strategic documents and outlines the results of multiple scenarios to showcase how different technology options and policy changes can influence Romania’s pathway towards #climate #neutrality. The model identifies cost-effective technology deployment pathways to reach emissions targets, under different possible sets of constraints. Key findings include the need to reduce energy consumption at the economic level, increase the development of #REC, and accelerate the electrification of the economy. See all the recommendations: https://shorturl.at/7gIGm 🏭🔄The #CCS deep dive highlights how Romania’s significant CCS potential can support the deep decarbonisation of hard-to-abate industries, enable negative emissions, and position Romania as a regional CCS hub. The ADP model scenarios show that a nearer-term and more ambitious rollout of CCS projects would be necessary than foreseen in Romania’s national climate strategies. See all the recommendations: https://shorturl.at/QvOIE 🚛🌐The #hydrogen deep dive demonstrates how hydrogen production will be essential in supporting the deep decarbonisation of industry and transport sectors in the region. The results of ADP modelling show a slower phase-in of clean hydrogen in the near-term compared with the Romanian Hydrogen Strategy, but the modelled increase in clean hydrogen demand and production highlights an urgent need for significant investment and infrastructure planning beyond the Strategy’s 2030 horizon, including interconnector pipelines to exploit Romania’s potential to become a hydrogen exporter to Central Europe. See all the recommendations: https://shorturl.at/Os2g1 

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How are financial institutions shaping Europe's journey to a net-zero economy? Join us for a crucial panel discussion on May 2 at Climate Action’s Sustainable Investment Forum on "Financing the Transition: The Role of Banks from Planning to Practice," where MSCI’s Climate Policy Lead, ESG & Climate Research Solutions Anja Ludzuweit, CFA, will explore the critical role banks play in driving sustainable development. Discover the latest strategies in transition planning and finance, and how collaborative efforts between banks, government policies, and corporate initiatives are pivotal to achieving our climate goals. #SustainableInvestment #SINVEurope #ClimateAction #SustainableFinance #NetZeroTransition #Banking http://ms.spr.ly/6049YJhBl

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Green finance emphasises "additionality" - yet only 2% of corporate and municipal green bond proceeds initiate projects with new green features. The vast majority of green bonds are used to (a) refinance ordinary debt, (b) continue ongoing projects, or (c) initate new projects without new green aspects. As an example of (c), the semiconductor firm ADI promoted its first green bond as underwriting a new headquarters that was LEED Gold certified. But that ADI’s Irish R&D facility had already achieved the same level of LEED certification, so the green aspect of the project was not novel for the issuer. This does not mean that the project wasn't valuable (rolling out existing green technologies is useful), but contradicts the claims of some green bonds which are to develop new technologies. Instead, it highlights the dangers of black-and-white thinking, viewing "green bonds" as a homogenous entity. A green bond that develops new technology is different from one that rolls out existing technology, which in turn is different from one that refinances ordinary debt. Simply calling a bond "green" masks the wide variety of uses to which the proceeds may be put. By Pauline Lam and Jeffrey Wurgler. https://lnkd.in/gHcCxy3N

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Can Europe's economy exceed expectations in 2024? - Read Harvard's Kenneth Rogoff on Portfolio Construction Forum https://lnkd.in/ghjyR22p #PortfolioForum #Markets #EuropeanEconomy #EUEconomy #EUGrowth #EUGDP #EuropeanEquities

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Really pleased with the announcement today of VH Global Sustainable Investment Opportunities plc's #GSEO half year 2024 #results, specifically reflecting on the strong underlying performance of the #portfolio. This morning, on our analyst call, I articulated our views on the opportunities for #GSEO in light of increased #demand for electrons caused by the disruptive effect of generative #AI technology on the #energy landscape #globally. Something not fully articulated in recent years by our peers, for whom the role of #renewable #electrons was cast in predominantly #decarbonising our #homes, #industry and #transportation. At Victory Hill Capital Partners LLP we pride ourselves on understanding the whole picture, across different #technologies, #energymarkets and #geographies. Only then can we fully understand how we can enable our #investors to participate in differentiated returns and make a positive #sustainable #impact. #sustainableinvesting #esg #energytransition

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IMPACT INVESTING MARKET SIZE 2024 - IN UK AND EUROPE: A REVIEW OF TOP IMPACT INVESTING MARKET FORECAST REPORTS TILL 2030 https://lnkd.in/erTRcu4A #PrivateEquity #VentureCapital #socialinnovation #familyoffice #hedgefunds #ETFs #impactinvesting #esginvesting #philanthropy #esg #climatefinance #funds #socialimpact #socialfinance #ETFs

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The name of a fund is the first communication opportunity on which investors become interested in a fund and it is therefore an important marketing tool. On May 14, 2024, ESMA published its final guidelines on the use of ESG and sustainability-related terms in fund names. In this article, Klaske Beyer delves into these new regulations and their implications for fund managers and investors. https://lnkd.in/es4zSrg5

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Tapani Pahkasalo, Partner at CapMan Natural Capital, will be speaking at the FEA-DANA International Forest Investment Conference on May 2nd in New York about forestry and natural capital investment opportunities in Europe, and why investments in Europe may potentially provide strong returns right now. 🌲🌳   European forest industries are modern and new high value-add products are entering the markets, driving new investments and making the forest industries very competitive. Wood and fiber demand in Europe is at high level while there are severe external supply shocks re-shaping the markets. Scarcity of forests and wood is further exacerbated by high demand for biodiversity and carbon services of these same forests. Finally, green transition provides interesting revenue opportunities for forest owners by increasing demand for forests and infrastructure they provide in the form of biodiversity positive renewable energy production.  More information through the link in comments!

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New EU ESG rules aim to combat greenwashing amid backlash citing clarity and enforceability issues. The new ESMA regulation will force around 2/3 of Europe’s so-called "ESG" or "SRI" funds to either sell off $40 billion in assets or change their names in a way that more accurately and transparently reflects their holdings. This is expected to affect hundreds of "responsible" investment funds, holding such notable beacons of sustainability as Shell, ExxonMobil, BP and TotalEnergies. 📸 Source: https://t.ly/EbtSD #ESG #SRI #ResponsibleInvesting #Sustainability #ImpactInvesting #impact #SustainableInvesting

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The latest ABN AMRO’s ESG Investor Survey survey results are published. This report explores the evolving landscape of ESG investing, offering a closer look at how investors across Europe are shaping fixed-income strategies. With input from 54 respondents based in Germany, France, and The Netherlands, the 2024 report explores the motivations, preferences, and rigorous criteria driving sustainable investment decisions, revealing valuable insights into the sector’s ongoing transformation. 48% Of investors are now only considering ESG-labeled bonds, up from 31% last year. Key findings include a strong preference for green and sustainability-linked bonds, the use of MSCI and Sustainalytics ESG ratings, and an emphasis on decarbonization targets. However, data quality issues and the lack of standardization hinder market growth. Investors remain open to “greenium” but show varied opinions on regulation and sector suitability for sustainability-linked bonds. Read the full report here:

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Stricter climate policy increases international capital reallocation in portfolio and banking investments, but not in FDI or bonds. Diversification and risk mitigation are key factors. "Climate Policy and International Capital Reallocation" by Marius Fourné and Xiang Li. Read it online here: https://lnkd.in/dfkCiJYU #FinancialMarkets #banking #investments #Portfolio

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New insights briefing from the Energy Transitions Commission focused on the importance of not only raising ambition in the next round of NDCs under the Paris Agreement, but also making stronger links to national policies and increased government and industry collaboration on implementation. The ETC recommends that “NDCs 3.0” define: - Clear and detailed roadmaps for implementation of accelerated climate action backed by strong government policy (e.g., quantitative targets for GW of renewables, phase out dates for bans on the sale of gasoline or diesel engine vehicles). - Measurable, comprehensive (covering all sectors and GHGs) and granular targets for emissions reductions. - Investable plans, especially for emerging markets, clearly stating the investment and international climate finance required to deliver stated targets. https://lnkd.in/erxp23YN

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Can Europe's economy exceed expectations in 2024? - Read Harvard University's Kenneth Rogoff on Portfolio Construction Forum https://lnkd.in/ghjyR22p #PortfolioForum #Markets #EuropeanEconomy #EUEconomy #EUGrowth #EUGDP #EuropeanEquities

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