Nicolas Forest, Global Head of Fixed Income, breaks down inflation scenarios and offers strategies to reduce sensitivity

A strong global focus on climate change by governments, regulators and consumers has led to Environmental, Social Environmental (ESG) considerations taking a centre stage in investment decisions.

In 2020, the largest manufacturer of glyphosate announced a $9.6 billion agreement to settle filed and future claims in US courts that the pesticide had caused health problems. In 2021, the judge said the amount was too small. Now that should catch some attention.

The current inflation trend is unique to the post-COVID economy

The newly-launched Kartesia Impact Fund I seeks to promote a more inclusive and environmentally efficient society, by investing in companies directly contributing to the UN Sustainable Development Goals and supporting others in their transition to more impactful practices.

In terms of performance, US govies delivered  positive performance over the past month as US assets generally generated better performance than European ones, with Equities and High yield leading the charge

European equities, supported by the reopening of regional economies and strong global goods demand, closed the month higher. Another strong supporting factor was the acceleration of  vaccination campaigns,  especially in the Eurozone, which is now catching up with the UK and the US.

In June, economic indicators showed that growth remained sound across the world, notably in the service sector

The outcome of the FOMC meeting was June’s main macro event