Going Global With ESG Investing

by Matthew Blume, CFA of Pekin Hardy Strauss Wealth Management  

Our mantra has always been to go wherever we believe there is value. We will take our SRI mandate to the far reaches of the Earth if that is where we are able to find attractive investment opportunities that meet the needs of our sustainably-minded investors. Now, more than ever, our focus has turned global, as we look for strong ESG performers that trade at attractive valuations, a task that has become exceedingly difficult in the domestic market. Emerging markets, despite their unique challenges for ESG (Environmental, Social, and Governance) Investors, demand special attention due to their deep undervaluation relative to the U.S. stock market. 

We believe the opportunity on offer for ESG investors in emerging markets is clear. We recognize the unique challenges that emerging markets investing poses for SRI investors, but we also recognize that SRI investors who are willing to go against the grain stand to benefit greatly from deep undervaluation and an ESG premium. While countless ESG investors crowd into the same flashy U.S. technology stocks, paying multiples that all but guarantee poor forward returns, value conscious investors who are willing to do the more difficult work of understanding the ESG risks and opportunities of emerging market companies should be rewarded with attractive long-term performance in our view. 

Learn more about our approach to ESG Investments including - GDP Growth; Evolution of Emerging Markets;  Valuation Discrepancy; The U.S. Dollar is Overvalued;  and ESG Outperformance in Emerging Markets, all in Mr Blue article here -  https://greenmoney.com/going-global-with-esg-investing

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