Sponsors
Content from: AGF
Two trends that will help define the green transition
Content from: Ecofin
Opportunities from the economic transition
Investing in tomorrow’s world
The future of tech
Oil and ESG face off
Black gold boom versus a greener future
My favorite theme
Five hot spots
contents
SPONSORED FEATURES
An end to the great bull market is forcing investment managers to think differently. Themes are increasingly seen as a way to target areas of structural growth and back the technologies and innovations shaping tomorrow’s world. In this Due Diligence report, we discover the themes attracting today's capital in the hope of generating returns tomorrow.
The hottest themes right now
Hear from the experts
Content from: Eventide
Human flourishing: The underappreciated investment insight
Content from: Index IQ
Dual impact investing: Seeking to do well by doing good
Content from: Pictet
Megatrends investing: From the pioneers
Go to site...
Finding opportunity
Thematic investing is nothing new. It’s been around for decades and will continue to be around for years to come. What has changed is the intensity of investor focus on thematic investing as a way to solve the world’s most pressing problems. At Citywire’s eighth Due Diligence Report virtual event of 2022, five experts reveal the subthemes attracting investment and how asset allocators can separate genuinely impactful investments from those that miss the mark.
Click here to view the full replay of the panel
CONTENT BY
We explore our extensive buy list data to reveal the favourite ESG funds among selectors
Two Trends That Will Help Define the Green Transition
Vishal Banè
Associate Portfolio Manager, AGF Investments Inc
1. Source: Bloomberg, 12/2021. 2. Source: FactSet. 3 .Source: Moody’s, Barclays Research, 12/2021. 4. Source: Bloomberg. 5. Source: Bloomberg, Morningstar. 6. Source: Bloomberg, 12/2021.
All investments are subject to market risk, including possible loss of principal. Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes, which could affect the market for and value of municipal securities. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated securities. Past performance is no guarantee of future results, which will vary. All investments are subject to market risk and will fluctuate in value. Diversification does not assure a profit or protect against loss in a declining market. It is not possible to invest directly in an index. Active management is the use of a human element, such as a single manager, co-managers or a team of managers, to actively manage a fund’s portfolio. Active management strategies typically have higher fees than passive management. Alpha measures a fund’s risk adjusted performance and is expressed as an annualized percentage. Bloomberg High Yield Municipal Index covers the high yield portion of the USD-denominated long-term tax-exempt bond market. The index has four main sectors: state and local general obligation bonds, insured bonds, and pre-refunded bonds. Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. The de minimis rule states that if a discount is less than 0.25% of the face value for each full year from the date of purchase to maturity, then it is too small (that is, de minimis) to be considered a market discount for tax purposes. Instead, the accretion should be treated as a capital gain. This material contains the opinions of the MacKay Municipal Managers™ team of MacKay Shields LLC but not necessarily those of MacKay Shields LLC. The opinions expressed herein are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and opinions contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Any forward-looking statements speak only as of the date they are made and MacKay Shields assumes no duty and does not undertake to update forward-looking statements. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of MacKay Shields LLC. ©2022, MacKay Shields LLC. All rights reserved.
The commentaries contained herein are provided as a general source of information based on information available as of August 31, 2022, and are not intended to be comprehensive investment advice applicable to the circumstances of the individual. Every effort has been made to ensure accuracy in these commentaries at the time of publication, however, accuracy cannot be guaranteed. Market conditions may change and AGF Investments accepts no responsibility for individual investment decisions arising from the use or reliance on the information contained here. AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets. ®The “AGF” logo and “Invested in Discipline” are registered trademarks of AGF Management Limited and used under licence.
While soaring energy prices dominate headlines, the secular transition to a sustainable economy continues to evolve. Here we highlight two trends we believe are crucial to the green transformation – and which could present opportunities for sustainability-themed investment strategies. Electricity grids War in Ukraine and the ensuing power crisis in Europe have only highlighted a well-known fact: balancing the supply-and-demand of energy is never an easy task. This is as true for green electricity as it is for traditional oil and gas. The electricity infrastructures are becoming increasingly ill-prepared to handle the variable nature of energy produced from solar and wind. As well, the best sources of wind and solar energy are frequently found far from the demand centres. Until power infrastructures are well-connected, stable, green and comprehensive, electricity grids will remain a distant goal. We think, that the goal is attainable – and that electrical cable manufacturers will be key enablers of the energy transition helping to bridge the gaps between distant renewable energy generation and consumption hubs. That effort will require upgrading the wiring that transports power from its source to its destination. In our view, the significant cabling infrastructure investment required for net-zero carbon targets is driving rising investor interest in cable original equipment manufacturers (OEMs), especially among investors who follow so-called ESG (for environmental, social and governance) strategies. Within the context of offshore wind rollout in the European Union and the United States, Credit Suisse analysts see cabling as a relative bottleneck, supporting a strong pricing and margin environment for these companies. Subsea and Land High Voltage Direct Current (HVDC) Cables Annual Production Capacity Versus Demand (in Kilometres)
Source: Credit Suisse Subsea and Land HVDC supply/demand model as of April 14, 2022. Based on offshore wind forecasts and already announced interconnection projects and future ‘probable’ interconnection projects.
Renewable energy sources are a crucial component of the EU's goals to achieve net-zero, and the EU has historically been at the forefront of cable laying and electrification. As a result, according to Credit Suisse, European cable companies hold the majority of the market share outside of China, at more than 80%. This industry consolidation, plus the high capital intensity of subsea and land HVDC cables, offers healthy industry dynamics and strong barriers to entry. The possibility of deep-in-the-ocean, floating wind farms, which are still in a very nascent stage of growth, may further add to the order books of these companies. Hydrogen’s jump-start Over the past decades, there have been several waves of excitement around replacing hydrocarbons with hydrogen that didn’t pan out as expected. However, hydrogen has gained momentum again. This time it is supported by the increasing applications offered by hydrogen, the need to green the world economy, and the rapidly evolving geopolitical landscape. The European Commission in March 2022 significantly upgraded its hydrogen ambition by raising its renewable hydrogen target from 5.6 megatons to 20 megatons by 2030. Japan, Australia, China and India have also unveiled national hydrogen strategies. Although the U.S. is lagging the EU and Asia, the Clean Energy for America Act has proposed tax incentives to spur investments in low-carbon hydrogen production. Hydrogen plays a critical role in difficult-to-abate sectors, such as long-distance and heavy transport, as well as aviation,shipping, iron and steel production, and chemicals manufacturing. At present, grey hydrogen, produced from natural gas without carbon capture, utilization and storage (CCUS), costs between US$0.80 to US$1.40/kg, according to the International Energy Agency, with the cost fluctuating with natural gas prices. Add carbon capture and storage at scale, and you get what is called blue hydrogen, and the costs start looking comparable to grey hydrogen. Levelized Cost of Hydrogen Production by Technology
Source: International Energy Agency (IEA), 2022
However, because of high production costs, so-called green hydrogen, produced using renewable energy sources, is priced significantly higher – between US$3 and US$8/kg. That makes it an uneconomical option for several end-markets. There are at least two end-markets where we believe green hydrogen has the potential to become economical in this decade. The first is a hydrogen fuel cell power system used by forklifts, which can provide significant benefits to large material-handling customers such as Amazon and Walmart. Morgan Stanley estimates that green hydrogen is already proving economical against traditional lead-acid technology. The second market is fuel cells used to power transportation, especially long-haul trucking, where the relative economics of green hydrogen are very much dependent on the price of the incumbent fuel, which in most cases is diesel. According to Morgan Stanley estimates, with supportive policy measures, it is not unimaginable that green hydrogen would become competitive with a more normalized diesel price. To achieve net-zero by 2050, the Hydrogen Council, upgraded its forecast for hydrogen demand in 2021. The economics, then, seem to be pointing in the right direction for hydrogen to become an important part of the energy mix. Hydrogen Demand (mt)
Source: Hydrogen Council, Morgan Stanley Research as of June 21, 2022
To learn more about our sustainable capabilities, please click here.
Matthew Breidert
Senior Portfolio Manager and Managing Director - Energy Transition, Ecofin
There are a lot of ways to think about the energy transition and a broader push for sustainability. Investors often struggle with how to understand and compare investment strategies that focus on these issues because strategies can vary. Ecofin has attempted to remove some of the guesswork by using master themes, which govern investment strategy. Here Matthew Breidert, senior portfolio manager and managing director for listed sustainable infrastructure and energy transition at Ecofin explains how he brings master themes together to identify opportunities around the energy transition and sustainable infrastructure. The Ecofin Global Energy Transition Fund (EETIX/EETAX) focuses on four master themes. What are they and what types of companies do they comprise? There are four key themes that the Ecofin Global Energy Transition Fund focuses on. These have been themes in place over the past five to six years, and we would expect these will be the themes that will continue over the next few decades. The first major theme is around electrification. These are companies involved in the clean production of power transfer, transmission and distribution and management of electrical systems, including battery storage. Companies that we would invest in around electrification include large-scale renewable developers, asset owners, operators and companies that are managing transmission and distribution systems . The second major theme in the fund is around clean transportation. So these are companies that are involved in creating products and solutions that allow for decarbonisation to travel and transport. A large focus of this particular theme is around the auto value chain or automotive value chain. And then, importantly, all the companies that provide the products and components that go into making those transportation solutions. The third major theme is around industrial and commercial efficiency. These would be companies involved with the making of the components that operate and use energy. The last major theme is around the circular economy. This is an environmental focus. So these would be companies focused on emission mitigation, waste, and recycling services. How do you ensure portfolio diversification? While the fund is non-diversified, we've selected these themes very specifically, to allow for what we'll call adjacencies. We want to find an opportunity for a research arbitrage, where our investigation and understanding of a particular area then has lots of lateral implications. We generally have positive representation across all master themes with the bulk of their representations in the first three themes. The other ways that we diversify the portfolio is geographically and by risk. What major shifts will shape the future of energy? The biggest shift that we expect in the future of energy is electrification. Looking at end demand for energy today, electricity represents about 20% of that total demand. In our view, in the next 20 to 25 years, that number is going to shift from 20%, all the way up to 40% to 45%, at the expense of all the other forms of currently direct use of energy. There are two major trends happening at the same time, inside this shift to electrification. The first is that we expect one of the primary ways corporates and consumers will decarbonize their supply chains and footprints is through substitution away from direct fossil fuel use towards electricity, in general. That can be using electricity for commercial and industrial heating vs traditional fossil fuels. In transportation this is most obvious in the substitution of an electric vehicle (EV) from a traditional internal combustion engine (ICE). We expect these substitutions and new technology adoptions to drive a multi-decade power demand trend. The second major trend is in decarbonizing the grid with the substitution of renewables and efficient natural gas to shut-down emission-heavy coal. So, with the trend towards more electricity demand, the grid is natively decarbonizing over time, which means everything using grid-based electricity is gradually decarbonizing as well. And we expect the vast majority of power demand growth to be supplied with decarbonized resources, particularly renewables complemented with battery storage or decarbonized alternatives like green hydrogen. What's the Ecofin Global Renewables Infrastructure Fund (ECOIX/ECOAX) all about? The Ecofin Global Renewable Infrastructure Fund focuses exclusively on the asset backed electricity supply aspect of energy transition theme. This particular fund and strategy is focused exclusively on the asset-backed businesses. These are companies that are highly regulated, in many cases, long-term contracted, the revenue structures are highly visible. This is really an alternative strategy to a traditional infrastructure strategy. We're investing in assets that would all be described as a category of infrastructure, but they have a very large content of measurable decarbonization. Which companies do you see as the key drivers of renewable infrastructure growth in the years to come? A good example is NextEra Energy*. This is a well-known company for many people who are focused on renewable electricity. The company is one half Florida Power and Light, which is the largest utility in Florida and southern Florida. And the other half is NextEra Energy Resources, which is their deregulated or for non-regulated business focused largely on renewable development, asset ownership and operations. Their big keys to success include incredibly disciplined commercial expertise. The way they structured contracts with their customers typically allows them a better rate of return and a lot of other people that enter into counterparty arrangements.
This is not a solicitation to invest in any fund. This is a forward-looking piece and all opinions expressed therein are subject to change. We accept no responsibility for the accuracy of the comments. This is not a recommendation to invest in any securities named. Fund holdings are subject to change and are not a recommendation to buy or sell any security. The funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectus contains this and other important information about the fund and may be obtained by calling 855-822-3863 or visiting www.ecofininvest.com. Read it carefully before investing. Mutual fund investing involves risk. Principal loss is possible. The funds are non-diversified, meaning it may concentrate its assets in fewer individual holdings than diversified funds. Therefore, the funds are more exposed to individual stock volatility than a diversified fund. Investing in specific sectors such as energy infrastructure and renewable energy infrastructure may involve greater risk and volatility than less concentrated investments. If for any taxable year the funds fail to qualify as a RIC, each fund’s taxable income will be subject to federal income tax at regular corporate rates. The resulting increase to each fund’s expenses will reduce its performance and its income available for distribution to shareholders. Investments in foreign companies involve risk not ordinarily associated with investments in securities and instruments of U.S. issuers, including risks related to political, social and economic developments abroad, differences between U.S. and foreign regulatory and accounting requirements, tax risk and market practices, as well as fluctuations in foreign currencies. These risks are greater for investments in emerging markets. The funds invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility than larger companies. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The funds may also invest in derivatives including options, futures and swap agreements, which can be highly volatile, illiquid and difficult to value, and changes in the value of a derivative held by the funds may not correlate with the underlying instrument or the funds’ other investments and can include additional risks such as liquidity risk, leverage risk and counterparty risk that are possibly greater than risks associated with investing directly in the underlying investments. The funds apply ESG criteria to the investment process and may exclude securities of certain issuers for non-investment reasons and therefore the Funds may forgo some market opportunities available to funds that do not use ESG criteria. The Ecofin Global Energy Transition Fund & Ecofin Global Renewables Infrastructure Fund are distributed by Quasar Distributors, LLC.
Thematic investors are betting on energy transition and sustainable infrastructure. One fund manager explains his approach.
*As of 7/31/2022, EETIX/EETAX held 6.0% in NextEra Energy and ECOIX/ECOAX held 6.8%.
??????? ??????? ??????? ??????? ???
As investors seek to drive positive change and harness powerful thematic trends, advisors and fund managers are identifying a diverse opportunity set, writes Jennifer Hill.
CLIMATE TECH For Henrickson Nauta Wealth Advisors in Belmont, Michigan, climate change presents several risks and opportunities for clients’ investment portfolios. ‘Capital markets will play a significant role in the net-zero transition,’ says principal Jeff Nauta. ‘Electric vehicles will soon dominate the roads. Coal, gas and oil-fired power is being replaced with wind and solar. The transition to net zero is happening now.’ The advisory firm is increasingly receiving questions from clients about sustainability strategies. Many are eager to explore investing in clean energy and climate technology. ‘At one end of the spectrum, we see many clients requesting sustainable and ESG screens within their public equity and fixed income allocations,’ says Nauta. ‘The good news is that there are a growing number of lower-cost products and innovative strategies like direct indexing for investors to choose from, which has not always been the case. ‘Investors who would like to further tilt toward the climate change theme can add positive screens to their public equities to invest in climate technology – businesses that will benefit from a net-zero world and carbon-intensive companies that may be transforming how they do business. ‘Finally, investors can look at the private markets to provide exposure to venture capital and private equity within those verticals. While the lines are blurred within these strategies between sustainable and impact investing, the investment returns do not need to be concessionary and in most cases offer the potential for outsized returns, speaking directly to the opportunity that is upon us.’ RESOURCE EFFICIENCY Resource efficiency is a focus for Pictet Asset Management’s thematic equities team. Within that, it favors semiconductor capital equipment manufacturers – the behind-the-scenes producers of the tools used to create the building blocks that underpin the new technologies of our modern era. Demand for chips is returning to more normal levels after Covid-19 created a supply/demand imbalance. Data from the Semiconductor Industry Association shows that over the past 30 years global semiconductor sales have expanded at an annual rate of 8.3%. Now, semi-cap companies stand to benefit from a spending boom as governments incentivize a regional build-up of semiconductor manufacturing in Europe and the US. China, South Korea, Taiwan and Japan are doing the same. ‘In order to be less reliant on east Asian silicon, incentives aim to increase local production such as the US Chips Act, the European Chips Act and Korea’s K-Semiconductor Belt Strategy,’ says Gertjan Van Der Geer, senior investment manager at Pictet and manager of the John Hancock Global Thematic Opportunities fund. ‘This is a great boost to semi-cap equipment companies. Companies such as ASML, Applied Materials, KLA Corp, Teradyne stand to benefit from multiple years of building out local production in an industry that is crucial to technological advance and already growing quite rapidly. ‘This segment is one of the most attractive investment opportunities we see at the moment with current market dynamics offering a very attractive entry point, which we expect will be followed by a very lucrative upswing for shareholders.’ SOCIAL ACTIVISM Aquinas Wealth Advisors in Pittsburgh, Pennsylvania, specializes in helping Catholics to align their finances with their faith. Its approach to faith-based investing is not reliant on negative screening, however. Increasingly, it is looking at the social activism of companies and favoring those with a deep commitment to shareholders and society. ‘Faith-based investing is not limited to segments with an explicitly religious bent, which is why we use thorough screeners to identify appropriate fits for clients and help maximize portfolio returns without hastily ruling anything out,’ says Chris McMahon, Aquinas’s president and CEO. The firm evaluates a broad range of stocks, ETFs and mutual funds using a two-tier approach. First, Aquinas screens for normal performance metrics on a non-moral basis. This includes beta measurements, third-party ratings, performance relative to peers, expense ratios, manager tenures and overall outlook. The screening process also evaluates historic market performance and employee engagement. From there, potential investments are evaluated based on the contribution they make to causes and social issues – both negative and positive. Those companies that score highly are likely to have anti-child labor policies, human rights policies, environmental investment initiatives and a focus on gender equality. ‘Anecdotally, we find that many family-owned corporations with a singular, consistent vision often meet all of our criteria,’ says McMahon. ‘By taking this approach, clients can sell the securities of companies they don’t feel they are proper fits for, enjoy complete transparency around their portfolios and relieve any tensions between their finances and their value systems.’ SPORTS STREAMING CAZ Investments of Houston, Texas, invests where thematic tailwinds will exist for the next three, five or 10 years. Today, its favorite theme is the changing consumer, and more specifically the ‘cord-cutting behavior’ in the marketplace. ‘The number of pay TV households in the US has declined 30% over the last decade, and that trend is expected to continue for years as consumers make the switch to streaming,’ says CIO Christopher Zook. ‘The question is, who will benefit? The answer is live content, in particular live sports. In fact, from 2005 to 2019, sports content catapulted from 14 of the top 100 most-viewed programs to 92 of the top 100. ‘Owning minority stakes in the world’s most iconic sports franchises offers an attractive set of attributes to capitalize on this theme and deliver excellent risk-adjusted returns through challenging times.’ Zook points to four key characteristics: high quality and resilient revenues, durable through recessions with very predictable and persistent sustainability; the ability to benefit from inflation due to pricing power and high-quality real estate assets; historically low correlation to all other asset classes and broad economic trends; and substantial scarcity and defensible moats. Through its partnership with Arctos Sports Partners, it owns minority equity positions in sports franchises such as the Boston Red Sox (Fenway Sports Group), Los Angeles Dodgers, Chicago Cubs and Houston Astros in MLB, Golden State Warriors and Sacramento Kings in the NBA, and the Minnesota Wild and Tampa Bay Lightning in the NHL. WATER Investing in water is not without controversy, the most common objection being that water should be free as a human right. Gitterman Wealth Management in Edison, New Jersey, believes it is essential to accurately price water to incentivize the responsible management of water and promote investment into supply resiliency and clean water solutions. ‘Water is essential to both human life and industry yet is often overlooked as an investable theme,’ says its director of investments, Jessica Skolnick. ‘The critical importance of water goes beyond meeting human physiological needs and reminders are flooding the headlines daily. ‘This summer’s record heatwave and drought in China wrought havoc on hydroelectric power generation and supply chains. In the American West, a population boom is colliding with record drought and the limits of the Colorado River’s capacity to provide water to the region.’ Gitterman invests a portion of most of its clients’ portfolios in water utilities and innovative companies working on solving water-related challenges. ‘While the common perception is that utilities underperform in rising rate environments, the performance of water utilities is less correlated to interest rates than traditional power utilities,’ says Skolnick. ‘Water demand is much more inelastic than demand for electricity, so the economic sensitivity of water utilities is typically lower. While electricity can be moved around the grid easily, creating a competitive market, water is difficult to transport, favoring the water utility. ‘Water also offers a low correlation to other commodities and equities and has historically been an effective hedge against inflation.’
Dave Breazzano, Head of credit investment team, Polen Capital
“We believe the improved return characteristics of the asset class warrant a constructive orientation for income portfolios”
Ed Perks, CIO, Franklin Templeton Investment Solutions
Christopher Zook, CIO, CAZ Investments
“Owning minority stakes in the world’s most iconic sports franchises offers an attractive set of attributes to capitalize on this [sports streaming] theme and deliver excellent risk-adjusted returns through challenging times”
Adam Abbas, Co-head of fixed income, Harris Associates
Jessica Skolnick, director of investments, Gitterman Wealth Management
“Water also offers a low correlation to other commodities and equities and has historically been an effective hedge against inflation”
Jeff Nauta, principal, Henrickson Nauta Wealth Advisors
“Electric vehicles will soon dominate the roads. Coal, gas and oil-fired power is being replaced with wind and solar. The transition to net zero is happening now”
Gertjan Van Der Geer, Senior investment manager, Pictet Asset Management
Chris McMahon, president and CEO, Aquinas Wealth Advisors
Faith-based investing is not limited to segments with an explicitly religious bent, which is why we use thorough screeners to identify appropriate fits for clients and help maximize portfolio returns
CLIMATE TECH
RESOURCE EFFICIENCY
SOCIAL ACTIVISM
SPORTS STREAMING
WATER
Deirdre Gibson
Partnership Success Specialist, Eventide Asset Management
Thanks to television, it’s a familiar sight: the surgeon scrubbing in, carefully washing every surface of their hands even before putting on sterile gloves; getting help into the surgery gown in order to maintain maximum cleanliness; covering nose, mouth, and hair in order to not even breathe on the patient or let a single strand of hair fall during the surgery. And we all know why. In a word – germs. In the mid-1850s, about twenty years before the discovery of germs, a Hungarian doctor named Ignaz Semmelweis was urgently trying to discover why so many women were dying of an infection after giving birth in a local maternity hospital. Death rates fell dramatically when Semmelweis began requiring that doctors wash their hands and instruments with chlorine after doing an autopsy on a deceased mother, before going to help deliver the next baby. Today, the science of microbiology has forever changed how humanity approaches matters of health. In less than 200 years, countless products have been developed and brought to market based on this knowledge, from simple antibacterial hand soaps to complex medical treatments and devices. Where long-term growth meets the global common good From an investment perspective, the emergence of microbiology and the companies that utilize its advances to create value for society is just one example of what we at Eventide refer to as a ‘theme of human flourishing’ – the opportunity to meet important human needs through investments in businesses and the potential to experience financial success over the long term by doing so. In short, themes of human flourishing are the overlap between two important concepts for us as investors, namely secular growth themes, and important human needs. There are powerful trends that emerge as societies grow, innovate, and collectively adopt new habits. These trends are driven by society’s ongoing transition from an old economy – how things used to be done – to a new economy – how things will be done in the future. They often arise from disruptions and technological advances. Secular themes can be beneficial or harmful, or incorporate elements of both. Many secular themes, however, are growing explicitly because there is rising demand, driven by important human needs.
This communication is provided for informational purposes only and expresses views of Eventide Asset Management, LLC (“Eventide”), an investment adviser. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses. Eventide’s values-based approach to investing may not produce desired results and could result in underperformance compared with other investments. Any reference to Eventide’s Business 360® approach is provided for illustrative purposes only and indicates a general framework of guiding principles that inform Eventide’s overall research process. Investing involves risk including the possible loss of principal. Past performance does not guarantee future results. Eventide’s ethical values screening criteria could cause it to underperform similar investments that do not have such screening criteria. This could be due to ethically acceptable companies falling out of favor with investors or failing to perform as well as companies that do not meet Eventide’s ethical screening guidelines. The Adviser’s judgment about the quality of a particular company may prove to be incorrect. Eventide uses its trademark (“Investing that makes the world rejoice®”) in a figurative manner to help explain its focus on serving investors by helping them improve the world. Eventide is a financial sponsor of this issue of Citywire.
Dolores Bamford
Co-CIO, Eventide Asset Management
At Eventide, we think about meeting these needs through the lens of develop, sustain, and restore: Develop → extend, grow, or create new ways to harness our resources and meet the demands of a growing and changing society Sustain → preserve, keep, or protect resources so that they can continue to regenerate and provide for future generations Restore → make right, fix, or heal what is wrong or broken Often these approaches overlap, such as with innovations that help us obtain food or energy in more efficient and sustainable ways or treat injuries and illnesses more effectively. And, of course, there are many ways to meet human needs outside of the realm of business. But where businesses and industries are experiencing growth and profiting by meeting important human needs, this is where we find themes of human flourishing.
Choosing great companies within great themes Themes of human flourishing constitute an important part of our investment process and how we implement our Investment Ideals. However, in Eventide’s view, true alpha generation consists not only in identifying the right themes, but also the specific companies that are poised for long-term success. We believe that these are the companies that operate with excellence by creating value for all of their stakeholders. Win-win stakeholder relationships are not, in our view, merely a form of altruism or a risk-mitigation approach but constitute an underappreciated source of alpha, which is why we have a dedicated framework called Business 360® for evaluating a company’s relationships with its stakeholders. Companies that place a premium on customer satisfaction, employee morale, supplier partnership, societal impact, and environmental stewardship tend to have higher customer loyalty, higher productivity, resilient supply chains, stronger brands, and more sustainable productive yield. In other words, we believe doing what is right is also smart. Conversely, we believe that value-destruction is an under-recognized source of risk – companies that seek short-term gain for shareholders by exploiting or destroying value for other stakeholders may ultimately see those short-term gains reversed. Partnering with companies that are seeking financial success through creating compelling value for the global common good– this is what we call ‘investing that makes the world rejoice®.’
About Eventide Eventide was founded by asking the question, How do we love our neighbor through the way we invest? Since 2008, we have been building an interdisciplinary team of scientists, analysts, portfolio managers, and programmers and honing our investment process. We identify investment themes of human flourishing and the companies within them that are poised to prosper by creating value for customers, employees, suppliers, host communities, the environment, and society broadly, using our Business 360® framework.
Late last year, investments in environmentally and socially responsible companies were all the rage. At least, that was the takeaway from the COP26 global climate summit in Scotland. The great and the good attending the summit had a simple message: we should phase out fossil fuels as fast as possible. Clean, renewable energy, such as wind and solar power, should be used to fill the gap. At the same time, investors pledged to wean themselves off buying shares of fossil fuel companies steadily. But just a few months later Wall Street started buying energy stocks like they were going out of fashion. Since the beginning of the year, returns on energy-focused funds have trounced those specializing in ESG factors. It’s the opposite of what the COP26 delegates desired. ‘It’s not that ESG is dead; it has a great future,’ says Arthur Hogan, chief market strategist at B Riley Wealth in New York. ‘But the supply/demand dynamics for oil and gas look too compelling right now.’ Put another way, the fossil fuel business is making investors rich now. But longer-term, green and sustainable businesses will prosper. Investors just need to be patient. BLACK GOLD The oil sector’s performance this year has been very strong, especially given the broader market pullback. Around 95% of US mutual and exchange-traded funds that specialize in energy stocks saw gains in the year to 15 August, according to Morningstar data. The largest of the lot, the $37bn Energy Select Sector SPDR ETF, gained 41% over that period, besting the median energy fund return of 36%. The strong run for energy stocks has been driven in large part by the rallying prices of oil and gas following Russia’s invasion of Ukraine. ‘Higher prices have resulted in record profits for independent producers and record margins,’ says Jay Hatfield, CEO at Infrastructure Capital Advisors in New York. Natural gas recently fetched €270 ($270) per megawatt hour – up more than threefold from €80.43 at the beginning of the year. Likewise, the price of Brent crude fetched $101 a barrel – up 30% from $77.6 when the year began, according to data from Trading Economics. It wasn’t just soaring profits that appealed to Wall Street. Some large energy stocks remain cheap relative to their earnings. For instance, stock in traditional energy company Chevron recently fetched less than nine times forward earnings. That’s a shockingly low valuation, says Jack Ablin, CIO of Cresset Capital. ‘It was remarkable to me, given that it’s a high-quality company with a hefty dividend.’ The stock recently had a projected dividend yield of 3.6%. ESG SANK While big oil and gas boomed, ESG stocks sank. The same proportion – 95% – of funds specializing in ESG investing dropped in value over the same seven-and-a-half-month period. The median return was -12.4%, which is not dissimilar to the broader stock market decline over the same period. Still, some ESG funds fared far worse, losing as much as 31%. The difference in performance between energy and ESG funds over that period is a staggering 48 percentage points. However, it is still the long-term goal of many governments to push for clean energy. The problem this year is that the world wasn’t ready for the impact of the Ukraine-Russia war. Not all Russian energy was cut off, but the West still got left considerably short of what it needed. Europe imports 2.2 million barrels of crude oil a day, of which 29% came from Russia in 2020, according to International Energy Agency data. For natural gas, it’s worse; 40% of the bloc’s gas came from Russia last year. The war and subsequent energy supply interruption created a problem, at least for now. If incremental renewable energy could have swiftly filled the gap presented by lower Russian energy supplies, then oil and natural gas prices wouldn’t have risen, says Stewart Glickman, an energy stock analyst at New York-based CFRA Research. ‘However, that’s not the situation,’ he says. ‘It may well be the case that renewables command a much bigger share of energy consumption in a decade or so but that’s not going to keep the lights on today or tomorrow.’ BRIGHTER FUTURE One of the key things missing is the ability to store renewable energy, Glickman says. Solar and wind power don’t provide electricity when either the sun isn’t shining or the wind isn’t blowing. What’s needed is battery technology to store the power. Unfortunately, that storage isn’t currently available in enough quantity. There is some good news though. Prices for solar panels are falling and consumers are quickly adopting the technology, according to B Riley’s Hogan. ‘The technology is getting better,’ he says. In addition, wind farms are quickly becoming a reality. Scotland has developed such a facility in the North Sea, costing an estimated $4.2bn, and it is set to become operational next year, generating 1.1 gigawatts of electricity. That’s said to be enough to power one million homes, a little more than a third of Scotland’s residential units. In simple terms, it’s good news for the greening of the power grid, but it will be costly and time-consuming to reach the goal of ditching all fossil fuels. The US is a good example of that. More than 60% of US electricity is generated using fossil fuels, according to Energy Information Administration data. Put another way, three out of five miles driven by electric vehicles are not as green as many people think. However, over a longer timeline, there is optimism for a full transition to renewable energy sources. ‘The future looks brighter for ESG than for fossil fuels,’ says Hogan. ‘The transition is going to happen with natural gas as the bridge to clean energy.’ In other words, natural gas – the cleanest of the fossil fuels – will need to be around until the renewable energy sources ramp up. Those changes will take time. What to do in the meantime? Cresset’s Ablin says: ‘Enjoy the fat dividends from the energy stocks.’
Last year, ESG investing was the future. Then the energy crisis hit.
“It’s not that ESG is dead; it has a great future. But the supply/demand dynamics for oil and gas look too compelling right now”
Arthur Hogan, Chief market strategist, B Riley Wealth
“It may well be the case that renewables command a much bigger share of energy consumption in a decade or so but that’s not going to keep the lights on today or tomorrow”
Stewart Glickman, Energy stock analyst, CFRA Research
Dual Impact Investing: Seeking to do well by doing good
WHAT IS DUAL IMPACT INVESTING? Traditionally, investors have constructed their portfolios in terms of asset class, company size, geography, and sector. As the world has globalized and become more complex, investors are seeking a modified approach. Dual Impact, a type of thematic investing, focuses on long-term trends rather than style boxes, with the goal to not only enhance a portfolio’s potential by providing investors access to structural changes or expected transformations, but also to make a positive social or environmental impact by aligning with and supporting leading non-profit organizations. We’ve highlighted four specific, investable themes below which offer opportunities for enhanced return potential while also seeking to positively affect our world. Dual impact themes
Ben Barber
SVP, Director of Municipal Bonds
Wendy Wong
Head of Sustainable Investment Partnerships
GROUP / INVESTMENT US OE Multisector Bond Nationwide Amundi Strat Inc Instl Svc Benchmark 1: Bloomberg US Agg Bond TR USD Benchmark 2: US Fund Multisector Bond Peer Group: Morningstar Category = Multisector Bond Number of investments ranked Peer Group Median
0.61 1.00 0.90
Prospectus Net Expense Ratio
Morningstar Rating Overall
Inception Date
02/11/2015 03/01/1980 01/04/1977
Return (Cumulative)
Peer group percentile
SELECT A TIME PERIOD:
QTD YTD 1-YEAR 3-YEAR 5-YEAR SINCE INCEPTION
QTD: 4/1/2022 - 6/30/2022
6 360
-2.72 -4.69 -6.12 -6.82
YTD: 1/1/2022 - 6/30/2022
4 353
-4.00 -10.35 -10.16 -10.93
1-YEAR
6 346
-3.47 -10.29 -9.85 -10.85
3-YEAR
4 306
2.69 -0.93 -0.39 -0.17
5-YEAR
2 270
3.72 0.88 1.23 1.41
SINCE INCEPTION - 6/30/2022
1
5.17 6.92 6.81 2.73
Blue Economy: Target companies that are based in, and actively good for, the ocean. In the U.S., blue economy sales growth was more than double that of the U.S. economy overall.¹ Green Transportation: Target companies that advance sustainable transportation through cleaner energy products and solutions. Global EV car sales are projected to increase more than 7.5x from 2020 to 2030.² Gender Equality: Target companies that are leading in gender equality within the workplace. Of companies globally with gender diversity in management, nearly three-quarters report profit increases of 5-20%.³ Heart Health: Target companies that treat heart disease, or help people lead healthier lifestyles. The global cardiovascular drug market is expected to grow at CAGR of 4% from 2020-2025.⁴
By investing in these growing themes, investors have the potential to capitalize on shifting consumer sentiment and more stringent regulations. The investment manager also contributes a portion of profits to a designated non-profit related to the fund’s theme – contributing to a more sustainable future. PORTFOLIO CONSTRUCTION WITH THEMATIC FUNDS There is no one-size-fits-all approach to implementing thematic investments into a portfolio. However, the most common approach for a values-driven theme is to use the thematic fund as a satellite exposure – complementing and enhancing core asset allocation with themes that reflect the investor’s beliefs, conviction, and risk tolerance. IMPLEMENTING DUAL IMPACT AS A SATELLITE EXPOSURE Below is a list of common considerations for investors focused on risk-return maximization. Implementing a dual impact thematic fund as a satellite exposure
Know the volatility of your core allocation: In introducing a thematic investment to your portfolio, it is important to size the bet so that it does not interfere with an investor’s long-run return objectives. Size your satellite: Generally speaking, New York Life Investments believes it is appropriate to take no more than 20% of a portfolio’s strategic risk in a tactical or thematic bet. Consider your other satellites: For many investors, multi-thematic strategies can help manage inherent cycle dynamics and changes in risk. Some may consider maintaining three to four thematic satellites in their portfolio.
MORE THAN INVESTING When investing in a Dual Impact theme, investors want to capture the sources of return associated with a given fund. Often, this goes beyond the traditional drivers of return. Mapping investors’ specific financial circumstances to additional impacts can have the potential to add value beyond traditional measures.
Consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting IQetfs.com. Read the prospectus carefully before investing. ESG Investing Style Risk Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating. There is no assurance that employing ESG strategies will result in more favorable investment performance. 1. Source: U.S. Bureau of Economic Analysis (Jun 2021). 2. Source: IEA (Apr 2021). Projections re_ect all existing policies, policy ambitions and targets that have been legislated for or announced by governments around the world. 3. Source: Mckinsey (Nov 2019). 4. Source: Research and Markets (Feb 2021). Core-satellite investing is a method of portfolio construction designed to minimize costs, tax liability, and volatility while providing an opportunity to outperform the broad stock market as a whole. Satellites are added to the portfolio in the form of actively managed investments Investing involves risk, including possible loss of principal. Asset allocation and diversification may not protect against market risk, loss of principal, or volatility of returns. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors, and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. No representation is being made that any account, product, or strategy will or is likely to achieve profits. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. You should consult your tax or legal advisor regarding such matters. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. “New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. IndexIQ® is the indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs, and NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC. 1950641
2022 has been a hard year for growth stocks so far. By the end of August the four largest tech stocks – Apple, Alphabet, Amazon and Microsoft – were down more than 10%. Smaller tech stocks have also seen their share of volatility, and some companies like Snap have announced significant layoffs or hiring freezes. ‘Tech companies and tech funds have taken a real beating this year,’ says Kenneth Lamont, a London-based senior manager and research analyst at Morningstar. ‘But on a net basis, the outflows haven’t been as dramatic as you might expect. Investors seem to be betting on technology as a long-term theme.’ Despite the headwinds, ETF issuers are making new bets on the future of tech as a theme. In August, BlackRock expanded its US megatrends platform with the launch of the BlackRock Future Financial and Technology ETF. The fund is actively managed by BlackRock’s fundamental equity (FE) franchise and invests in companies with innovative and emerging technologies within the financial services industry. BlackRock says that during the pandemic more people turned to fintech to manage banking, investing and other financial activities. The new fund is the sixth active ETF in its megatrends platform and the fifth from its FE franchise. The others are also future-focused, actively managed thematic ETFs targeting technology, innovators, health and the environmental economy. BlackRock is the latest issuer to join the fintech theme. Direxion, Grayscale and Global X also have funds focused on fintech, which is one of the more mature emerging tech themes. These funds invest in well-established payments companies, such as PayPal, alongside more emergent payments and banking firms. Popular ‘buy now pay later’ companies, such as Affirm, are also common inclusions. Morningstar’s Lamont notes that many of the trends driving interest in fintech are secular because of the interest in e-commerce, mobile payments and peer-to-peer payments. ‘We see a bit of stickiness with these themes because consumers now expect certain services,’ he says. WEB3 AND THE METAVERSE For investors looking for edgier technology companies, there is a spate of new thematic funds focused on the metaverse as well as aspects of web3. Both these themes are a little harder to pin down as the definition of what qualifies as a metaverse or web3 company is a little vague and many funds have their own definitions for both terms. Broadly speaking, metaverse companies typically have something to do with augmented or virtual reality. Web3 companies tend to be affiliated with new innovations in blockchain-related technologies or digital assets like non-fungible tokens. There are already several metaverse ETFs from issuers including Fidelity, ProShares, Roundhill and others. Each of them has similar holdings but they could come to differentiate themselves over time. ‘The issue we’re dealing with is that some of these ETFs track industries almost immediately as they are being developed, so they’re going to include most of what is available on a given theme and that can lead to a lot of sameness,’ says Roxanna Islam, Dallas Fort Worth-based associate director of research at VettaFi. Islam points to online gaming company Roblox as an example. Roblox has a large user base for its virtual community, which makes it profitable and an ideal candidate for an ETF, but it only went public last year. Roblox is in many metaverse and future of tech-themed ETFs. ‘ETFs can act as a check on the viability of newly public companies,’ she says. ‘They are somewhat restricted in what they can include in a fund because they want the underlying index to be relatively stable. ‘But for new industries that means there are a limited number of companies early on. This is true for the metaverse but also Web3 and other very nascent themes.’ A LOT OF THE LEGWORK In many ways, thematic ETFs can do a lot of legwork for investors when it comes to evaluating new companies – especially those focused on emerging technologies. Funds might choose to invest in a company soon after its IPO or they might opt to wait and see how a company fares. If you’re a long-term investor in a thematic ETF, it’s likely you’ll see those companies end up in the fund when they have reached a certain level of maturity, which could help mitigate risk. ‘Each ETF is going to have a set of rules for what gets included in a fund,’ says Islam. ‘Some of them have added differentiating features. So, for example, you can invest in a blockchain-themed fund right now that also has a small exposure to the Grayscale Bitcoin Trust. ‘That fund is likely to behave slightly differently than a blockchain fund that is only invested in blockchain companies. For investors who want to have exposure to both blockchain companies and a digital asset, a fund like that could make sense because they’re getting it in one fund.’ Letting ETFs do the research could be one reason why there have been fewer outflows from these thematic funds despite recent volatility. Islam says there are some incentives for investors to sit out the volatility and stay invested. ‘If an investor has invested in a fund and has had that position for less than a year, they don’t usually exit unless they are holding it tactically,’ she says. ‘I think people are waiting it out to see what happens, which makes sense. If these are meant to be future themes, investors likely aren’t planning to sell right away. That said, all the usual rules apply: the funds still have to perform well if they want to be viable long term,’ she adds.
Despite tech having taken a pounding this year, investors are showing an interest in its future. Bailey McCann reports.
“I think people are waiting it out to see what happens, which makes sense. If these are meant to be future themes, investors likely aren’t planning to sell right away”
Roxanna Islam, Associate director of research, VettaFi
“On a net basis, the outflows haven’t been as dramatic as you might expect. Investors seem to be betting on technology as a long-term theme”
Kenneth Lamont, Senior manager and research analyst, Morningstar
Megatrends Investing. From the Pioneers
A Pioneer In Thematic Equities
Josh Rubin
Portfolio manager and managing director of Thornburg Investment Management
Marc-Olivier Buffle
Head of Thematic Client Portfolio Managers and Research Pictet Asset Management
Overview • A pioneer in thematic equities since 1995 • Over 50 investment professionals manage USD69bn across 15 actively managed thematic strategies • Thematic equities identifies investment ideas on the basis of growth drivers being underpinned by secular trends • The approach combines the liquidity benefits of listed equity with the tangibility of venture capital
Since 1995, Pictet has pioneered a thematic investment approach that has since captured the imagination of investors across the world. More often than not, we’ve started to invest in themes long before others. We now manage over $69bn across 15 thematic equity strategies.
Our thematic investment approach rests on three key investment principles. We are differentiated by our relentless application of these principles: 1. a secular growth mindset; 2. specialization; 3. an unconstrained investment style 1. A secular growth mindset Thematic equity strategies aim to capitalize on megatrends, the profound changes in technology, the environment and society that are upending the world and shaping it for decades to come. Examples include the digitization of the economy, individualization & empowerment, and the depletion of the Earth’s natural resources – see Fig 1. Fig 1. Our Megatrends Framework At Pictet AM we believe these structural trends are a crucial source of long-run investment returns. That is why we use them as the basis for each of our thematic equity portfolios. Megatrends matter to investors because they not only disrupt industries, they also give rise to clear and predictable sources of value and profit growth. The structural forces that underpin the thematic companies in which we invest make it easier to understand how they are likely to perform compared to the wider global equity universe. Fig 2. Secular Growth - Thematic Universe
Timeline of Themes Launches at Pictet AM
How we invest in Themes
Source: Pictet Asset Management, 2022. Thematic universe vs MSCI AC equally weighted. The strategy is not constrained by MSCI ACWI which is shown for comparison purposes only. The index does not influence portfolio construction and the strategy’s investment universe extends beyond the components of the index. Alternative global equity indexes are equally appropriate.
The green dots in Fig 2. show the sales growth of companies within our thematic universes to that of firms represented in the MSCI AC World Index over five, 10, 15 and 20 year periods. Companies in our thematic universes have experienced higher and more reliable long-term sales growth than the market in general. The best thematic companies often trade at a discount to their long-term potential. We see evidence that the short-term mindset of the wider market persistently overestimates the rate at which the cash flows generated by thematic companies fade. 2. Specialization Our thematic portfolio managers are ultra-specialised. This is the secret of their success. Understanding the evolution of the megatrends influencing the companies operating within a particular industry demands concentrated effort and years of experience. Which is why we have specialized portfolio managers who have been following certain stocks in their respective thematic universes, often for over two decades. They have strong relationships with management teams and have good access to companies given the size and long tenure of our holdings. At Pictet, we measure companies using a propriety gauge called “thematic purity” to ensure that the companies we build stakes in are highly focused. As such, companies who are specialists in a field or which drive progress in the chosen theme are selected. Only companies who have activities that lie within the scope of a particular theme become candidates for investment: pure plays are always favored over more diversified companies. We believe our dedication to purity sets us apart from the rest. Thematic purity by strategy
Source: Pictet Asset Management, as at 31.03.2002, quarterly update
Our focus extends to how our investment teams are structured. Each team member is not only a portfolio manager, but is also a stock analyst. By dedicating all their attention to a clearly-defined universe of stocks, our investment managers develop distinctive, specialist expertise. We believe this gives them an advantage over the traditional global equity team. A typical global equity manager tends to cover a very large universe of stocks and are less focused. We argue that the Pictet thematic portfolio managers, by virtue of their specialisation to their slice of the global stock market, are more likely to outperform. 3. An unconstrained investment style Our themes are unconstrained and benchmark-agnostic. We devote ourselves to finding the best companies within our investment universes on a bottom-up basis. As long as companies meet our minimum liquidity requirements, we're not concerned which indices they sit in. We want a portfolio of companies that will do well in the future, whatever club they belong to. This means that our themes have low overlap with global equity indices and high active share. It gives active management the best chance to add value to client portfolios. Overlap And Active Shares Versus MSCI ACWI
Source: Pictet Asset Management, as at 31.03.2002, quarterly update Overlap = sum of all overlapping portfolios holdings with index, adding up the min of the two weights
Dare to be different It takes courage to be amongst the first, to be a pioneer. We dared to be different over two decades ago, when we first started investment themes like Water. The ensuing pay-off to our business has been large. We hope for the same experience for our investors who are able to take a longer term view and allocate capital to the megatrends that are shaping the future of our world.
Marketing communication The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments. Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management (Europe) S.A. has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional. The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested. Past performance is not a guide to future performance.
Source: Pictet Asset Management, 2022
A sub-advisor of John Hancock Investment Management
Terms & Conditions
TERMS OF SERVICE This Site (as defined below) is owned and operated by Citywire Financial Publishers Ltd (“Citywire”). Citywire is a company registered in England and Wales (company number 3828440), with registered office at 3 Spring Mews, London, SE11 5AN. By using or accessing our Site or services, including the Citywire Feed, (whether as a guest or a Member) you confirm your agreement to these terms of service (“Terms”). Your use of our Site is at all times subject to these Terms (which form a binding contract between Citywire and you). If you do not agree to these Terms, do not use our Site. Other terms may also apply to your use of our Site and services as set out in a separate agreement between us or between us and your employer. The Citywire Privacy Policy forms a part of this Agreement and explains how information collected while becoming a Member or, in limited circumstances, whilst using our Site as a non-Member, may be used by Citywire and its partners. By using our Site, you confirm that you have read the Citywire Privacy Policy and you warrant that all data provided by you is accurate. 1. Terminology “App” means the Citywire software application from time to time downloadable from a third party app store (whether or not for payment) to enable you to use our Site from the device to which the software application is downloaded. “Citywire”, “we” or “our” – Citywire Financial Publishers Limited. “Citywire Feed” - any Content downloaded for display on your website in accordance with the licence set out in section 5 below. “Citywire Privacy Policy” – our privacy policy available at https://citywireusa.com/professional-buyer/privacy as amended from time to time. “Content” – All information, content, data, graphics and services found on our Site, including without limitation, Feed Content. “Content Standard” – the content standard set out at Clause 8. “Contribution” – any (i) uploading, editing, modification or submission of material or information to our Site that you carry out or cause to be made; and/or (ii) contact that you make or cause to be made through our Site with any other user(s) of our Site. “Feed Content” - any headlines, active links or other source identifiers that you specifically select to receive via the Citywire Feed. “Intellectual Property Rights” means all proprietary and/or intellectual property rights including, without limitation, copyright (including rights in databases), know-how, trade secrets, trademarks, patents, trade names and other similar rights in each case whether registered or not and as may be exercised in any part of the world. “Member” - A user of our Site that has created an account. To the extent a Member is using the Site on behalf of an employer, organization, or other entity, then the term “Member” includes such employer, organization, or other entity. “Site” – means (i) the website: www.citywireusa.com; (ii) all sub-domains and services made available through such website; (iii) any other sites operated by Citywire or its affiliates. “Solution” means Site, App, Services, Content. “you”- A user of our Site. To the extent you are using the Site on behalf of an employer, organization, or other entity, then the term “you” includes such employer, organization, or other entity. 2. Obligations; Membership 2.1 Members must protect and keep secret their password at all times and must not allow any third party directly or indirectly to use their membership, username or password. Member(s) agrees to assume all responsibility concerning the Member(s)’ use of the Solution, including being held responsible for any and all activity occurring through the Member(s)’ username and password. 2.2 You confirm that you are acting in a professional business capacity in entering into these Terms, and are not acting as a consumer. 2.3 To the extent you (whether as a guest or as a Member) are accessing and using the Site on behalf of a an employer, organization, or any other third party, you represent and warrant that you are an authorized representative of the entity with the authority to bind the entity to these Terms, and that you agree to this Terms on the entity’s behalf. 2.4 You warrant that the registration information you have provided is complete and accurate, including in relation to the identity of the business you have registered on behalf of. 2.5 You agree to abide by all applicable laws and regulations with respect to your use of the Site (including use of the App and all use of Content). 3. The Site 3.1 Citywire reserves the right to modify, alter, change or withdraw any part of or access to the Site or App, whether temporarily or permanently, with or without notice to you and you confirm that any such modification, alteration, changes or withdrawal by Citywire shall be without any liability to you. 4. Intellectual Property Rights 4.1 Subject to the licence set out in clause 5 you must not copy, reproduce, modify, create derivative works from, transmit, distribute, publish, summarise, adapt, paraphrase or otherwise publicly display any Content or any portion of the Site or App without the specific written consent of a director of Citywire. This includes, but is not limited to, the use of Content for any form of news aggregation service or for inclusion in services which summarise articles, the copying of any fund manager data (career histories, profiles, ratings, rankings etc) either manually or by automated means (“scraping”). 4.2 All Intellectual Property Rights in and to our Site and App (including the Content) is owned by Citywire or our third party licensors. No rights are granted to you in relation to such Intellectual Property Rights other than the limited licence rights expressly set out in clause 5. 4.3 Content is protected by copyright laws and treaties around the world, including, without limitation, U.S. Copyright law. Unless otherwise noted, the Site, the App, and all Content are © Citywire Financial Publishers Ltd 2019. All rights not expressly granted herein are reserved. Images and videos used on our websites may come from various third party image libraries. For credit information relating to specific images where not stated, please contact picturedesk@citywire.co.uk 5. Licence 5.1 Subject to the terms of this Agreement, Citywire grants you a non-transferable, non-sublicensable, royalty-free, non-exclusive limited licence to use our Site on the following conditions: (i) you may, subject to clauses 5.3, 5.4 and 5.5, display Feed Content on your website and on other websites in respect of which you have obtained all necessary permissions and authorisations to display Feed Content on; (ii) you shall not copy, display, reproduce or create derivate works from any Content (other than Feed Content to which clause 5.1(i) applies); and (iii) nothing in these Terms grants you any right to use Citywire’s logo, brand or trade marks on your site or elsewhere. 5.2 You must ensure that all Feed Content displayed on any websites pursuant to clause 5.1 has an accreditation to Citywire as follows: “Citywire information is proprietary and confidential to Citywire Financial Publishers Ltd (“Citywire”). It may not be copied. Citywire excludes any liability arising out its use.” 5.3 Unless otherwise specifically agreed in writing by Citywire, you may not directly or indirectly charge users specifically for accessing Feed Content or otherwise commercialise Feed Content. You shall not re-sell or otherwise commercialise the Content in any way (other than the limited rights in relation to Feed Content set out in clause 5.1). 5.4 You must create a functional link back to the Citywire story(ies) summarised by the Feed Content. If you are displaying the Feed Content where a functional link back to Citywire is not possible, you must display on-screen the URL from which the Feed Content can be obtained. You may not directly or indirectly change, edit, add to or produce summaries of or derivative works from Feed Content or any content on the Citywire website nor place any full-story Citywire content in an HTML (or any other markup language) frame-set. 5.5 You may not directly or indirectly suggest any endorsement or approval by Citywire of your website or any non-Citywire entity, product or content or any views expressed within your website or service. 5.6 You acknowledge that Citywire has absolute editorial control over all Content and you accept that Citywire is editorially independent and that the editorial integrity of Content is the sole responsibility of Citywire. 5.7 Should you receive any enquiries which relate to Citywire or the Citywire Content you shall promptly refer such enquiries to Citywire. 5.8 You acknowledge and agree that we own all rights of whatever nature in and to the App. Citywire grants you a non-transferable, non-sublicensable, royalty-free, non-exclusive limited licence to (i) download the App to your device from the app store where it is lawfully held; and (ii) use the App for the purpose of accessing our Site on these Terms. You are granted no other rights in relation to the App and all rights not expressly granted are reserved by us. You acknowledge and agree that Citywire has no responsibility for or in relation to the app store from which you downloaded the App and has no obligation to maintain the App. The App is supplied ‘as is’ and neither Citywire nor any anyone else makes any representation, warranty, condition or other commitment (whether express or implied, by statute, common law, collaterally or otherwise) of any kind in relation to the App. Neither Citywire nor anyone else will have any liability of whatever nature (whether in contract, negligence or other tort or otherwise) in relation to the App. You will not reverse engineer, decompile or otherwise endeavour to obtain the source code to the App (save to the extent that you cannot be prohibited from so doing under applicable law). 6. Contributions 6.1 Whenever you make any Contribution you must comply with the Content Standards. 6.2 Subject to these terms of use, Citywire acknowledges and agrees that you retain ownership of all your intellectual property rights to your Contributions, and no intellectual property rights shall be assigned from you to Citywire. 6.3 You grant Citywire a perpetual, royalty-free, non-exclusive, perpetual (which for the avoidance of doubt means continuing after this Agreement), irrevocable, transferable, world-wide licence to use, copy, distribute, display, disclose and sell to third parties any Contribution (in whole or in part) for any purpose. These activities include but are not limited to editing or creating derivative works of any Contribution. 6.4 To the maximum extent permitted by applicable law, you irrevocably and unconditionally waive all moral rights to any Contribution. 6.5 You acknowledge and agree that (i) we have the right to remove or edit any Contribution you make on our services, including modifying and adapting it for operational and editorial reasons, with or without showing or marking that the Contribution has been removed or edited; and (ii) we have the right to disclose your identity to any third party who is claiming that any Contribution constitutes a violation of their intellectual property rights, or of their right to privacy. 6.6 Citywire does not moderate or actively review Contributions. Therefore all Members and visitors to the Site should treat any Contributions with caution. You accept (i) that we are not responsible for content of Contributions; (ii) that we do not endorse any of the material contained in them; and (iii) Citywire does not check the accuracy of information supplied by Members in their profiles. 6.7 It is the policy of Citywire to respond to alleged infringement notices that comply with the Digital Millennium Copyright Act (“DMCA”). If you believe that your copyrighted work has been copied in a way that constitutes copyright infringement and is accessible via the Solution, please notify the Citywire copyright agent as set forth below. For your complaint to be valid under the DMCA, you must provide the following information in writing: a. An electronic or physical signature of a person authorized to act on behalf of the copyright owner; b. Identification of the copyrighted work that you claim has been infringed; c. Identification of the material that is claimed to be infringing and provide a link (where available) to where it is located on the Solution; d. Information reasonably sufficient to permit Citywire to contact you, such as your address, telephone number, and, email address; e. A statement that you have a good faith belief that use of the material in the manner complained of is not authorized by the copyright owner, its agent, or law; and f. A statement, made under penalty of perjury, that the above information is accurate, and that you are the copyright owner or are authorized to act on behalf of the owner. The above information must be submitted to the following Citywire copyright agent: Ona Kviliute +44 (0)20 7840 5125 okviliute@citywire.co.uk 3 Spring Mews, London, SE11 5AN, United Kingdom UNDER FEDERAL LAW, IF YOU KNOWINGLY MISREPRESENT YOUR CLAIM, YOU MAY BE SUBJECT TO CRIMINAL PROSECUTION FOR PERJURY AND CIVIL PENALTIES, INCLUDING MONETARY DAMAGES, COURT COSTS, AND ATTORNEYS’ FEES. In accordance with the DMCA and other applicable law, Citywire has adopted a policy of terminating, in appropriate circumstances, the accounts of users who are deemed to be infringers. Citywire may also, at its sole discretion, limit access to the Site and/or terminate the accounts of any users who infringe any intellectual property rights of others, whether or not there is any repeat infringement. 7. Acceptable Use Policy 7.1 You may use our Site only for lawful purposes. You may not: (i) use our Site in any way that breaches any applicable local, national or international law or regulation; (ii) use any materials, data or information which you have obtained from the Site in any manner which, in Citywire’s reasonable opinion, is derogatory, damages Citywire’s reputation or takes advantage of it in any way; (iii) use our Site in any way that is unlawful or fraudulent, or has any unlawful or fraudulent purpose or effect; (iv) use our Site to send, knowingly receive, upload, download, use or re-use any material which does not comply with the Content Standards; (v) subject to Clause 5, deep-link to any portion of our Site for any purposes without the prior written permission of Citywire; (vi) perform any automated use of our Site, such as, but not limited to, using robots, spiders, scripts to create Contributions, to extract any of the content of our Site through such means as ‘screen scraping’, ‘database scraping’ or otherwise; (vii) violate the restrictions in any robot exclusion headers on this website or bypass or circumvent other measures employed to prevent or limit access to our Site; (viii) use this service as research or support for, or to inform your own or your company’s or employer’s subscription based service, or any subscription based service without obtaining a licence from Citywire in writing, such licence to be on commercial terms agreed by the parties; (ix) use our Site (or any of the Content) for the purpose of building a database or to use this for your own commercial exploitation by its inclusion in your own activities and/or services without obtaining the written approval of Citywire in advance of its publication; (x) access, use, or distribute the Site, App (or any Content) to develop (or assist any third party in developing) a product or service (including events) that competes with any product, service, or event of Citywire, or for any other competitive purposes. (xi) interfere with, disrupt, or create an undue burden on our services or the network or services connected to our Site; (xii) engage in, either directly or indirectly, or encourage others to engage in, click-throughs generated through any manner that could be reasonably interpreted as coercive, incentivised, misleading, malicious, or otherwise fraudulent; (xiii) collect information from our Site and incorporate it into your own database or products; or (xiv) use our services to knowingly transmit any data, send or upload any material that contains viruses, Trojan horses, worms, time-bombs, keystroke loggers, spyware, adware or any other harmful programs or similar computer code designed to adversely affect the operation of any computer software or hardware. 7.2 Use of the Printable Version facility is for private purposes only EXCEPT ONLY In the case of financial intermediaries, wealth managers or other entities or individuals providing investment advice to clients the printable version can be used to aid such services. 8. Content standards 8.1 These content standards apply when you make a Contribution to the Site. These content standards apply to each part of any Contribution as well as to its whole. 8.2 Contributions must: (i) be accurate (where they state facts); (ii) be genuinely held (where they state opinions); and (iii) comply with applicable law, rules and regulations, in the U.S. and in any country from which they are posted. 8.3 Contributions must not: (i) infringe or promote infringement of any copyright, database right, trade mark or other intellectual property right of any other person (including, promoting or offering pirated computer programs or links to such programs, information used to circumvent manufacturer-installed copy-protect devices, including serial registration numbers for software programs, rights management information or any type of cracker utilities); (ii) contain intentionally made false or misleading statements; (iii) offer to buy, sell or broker an investment; (iv) violate applicable laws, rules or regulations, including without limitation, rules or regulations of any applicable stock exchange or breach insider dealing regulations or confidentiality agreements; (v) involve commercial activities and/or sales without prior written consent from us such as contests, sweepstakes, group-buying, advertising, or pyramid schemes; (vi) be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; (vii) contain any material or link to material which: a. is defamatory of any person; b. is obscene, vulgar offensive, hateful or inflammatory; c. is likely to harass, upset, embarrass, alarm or annoy any other person; d. is threatening, abusive or invade another’s privacy, or likely to cause annoyance, inconvenience or needless anxiety; e. contains or promotes sexually explicit material or violence; f. promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or g. is likely to deceive any person; (viii) use invalid or forged headers to disguise the origin of any Contribution, or otherwise misrepresenting yourself or the source of any Contribution; (ix) use our Site to transmit, or procure the sending of, any unsolicited or unauthorised advertising or promotional material or any other form of similar solicitation (spam); (x) be used to impersonate any person, or to misrepresent your identity or affiliation with any person; (xi) give the impression that they emanate from Citywire or a Citywire employee, administrator or moderator, or another user of our Site; or (xii) advocate, promote or assist any illegal activity. 9. Non-reliance 9.1 You agree that you are responsible for your own investment decisions and that you are responsible for assessing the suitability and accuracy of all information and for obtaining your own advice thereon. You recognise that any information given on our Site is not related to your particular circumstances. Circumstances vary and you should seek your own advice on the suitability to them of any investment or investment technique that may be mentioned. (a) We do not provide, and no Content constitutes, investment advice; (b) You will not treat or represent Content as investment advice; (c) We do not recommend or endorse any product; (d) Content is not intended to address your particular requirements. We are not aware of circumstances specific to you and which could influence which financial products are more or less suitable for you and do not represent that we are aware of any such circumstances. We do not recommend that any particular product is suitable for you; (e) No Content constitutes or should be interpreted as a solicitation to engage in any investment activity; (f) Any investment decision made by you is entirely at your own risk; (g) Subject to paragraph 11, we shall not be liable for any losses, cost or expenses which may be incurred by you as a result of any investment made; (h) You may not use the Content in, or generate based on the Content, any advice, recommendations, guidance, publications or alerts made available to your clients or other third parties; (i) Whilst we try to ensure the Content is accurate and up to date, we cannot be responsible for any inaccuracies in Content. We are under no responsibility to provide you with access to any additional information or to update the Site, even if inaccuracies become apparent. 9.2 The fund manager performance analyses and ratings provided on this website are the opinions of Citywire as at the date they are expressed and are not recommendations to purchase, hold or sell any investment or to make any investment decisions. Citywire’s opinions and analyses do not address the suitability of any investment for any specific purposes or requirements and should not be relied upon as the basis for any investment decision. 9.3 Persons who do not have professional experience in participating in unregulated collective investment schemes should not rely on material relating to such schemes. 9.4 Past performance of investments is not necessarily a guide to future performance. Prices of investments may fall as well as rise. 9.5 Persons associated with or employed by Citywire may hold positions or take positions in investments referred to in this publication. 9.6 Citywire operates a policy of independence in relation to matters where the operators may have a material interest or conflict of interest. 10. Limited Warranty 10.1 Citywire will use reasonable endeavours to maintain the Site. You will not be eligible for any compensation because you cannot use any part of the Site or for any failure of the Site as a result of an event beyond Citywire’s reasonable control. 10.2 Neither Citywire nor its employees assume any responsibility or liability for the accuracy, completeness or availability of the information contained on our Site. 10.3 Neither Citywire nor anyone else makes any representation, warranty, condition or other commitment of whatever nature in relation to any information obtained by you through use of this Site. You acknowledge and agree that any information that you receive through use of the Site is provided “as is” and “as available” basis without representation or endorsement of any kind and is obtained at your own risk. 10.4 You agree that you are solely responsible for any damage to your computer system and/or loss or damage to your data files through use of this Site or by the use of links on the Site to external information. 10.5 To the maximum extent permitted by law, Citywire excludes all representations, warranties, conditions or other terms, whether express or implied (by statute, common law, collaterally or otherwise) in relation to the Site or otherwise in relation to any Content or Feed, including without limitation as to satisfactory quality, fitness for particular purpose, non-infringement, compatibility, accuracy, or completeness. 11. Liability To the maximum extent permitted by law, Citywire will not be liable in contract, tort (including negligence) or otherwise for any liability, damage or loss (whether indirect, consequential, special or otherwise) incurred or suffered by you or any third party in connection with our Site, or in connection with the use, inability to use, or results of the use of our Site or App, any websites linked to it or any materials posted on it or otherwise in relation to any Content or Feed. Citywire does not limit liability for fraudulent misrepresentation or for death or personal injury arising from Citywire’s gross negligence or willful misconduct. HOWEVER, YOUR EXCLUSIVE REMEDY FOR ANY CLAIM ARISING FROM A BREACH BY CITYWIRE OF THESE TERMS IS CESSATION OF USE OF THE SITE, APP, OR CONTENT. FURTHER, TO THE GREATEST EXTENT PERMITTED BY LAW, THE TOTAL LIABILITY OF CITYWIRE IS LIMITED TO THE GREATER OF $50 OR AN AMOUNT NOT EXCEEDING THE TOTAL AMOUNT ACTUALLY PAID BY YOU TO CITYWIRE DURING THE PRIOR SIX (6) MONTHS IN CONNECTION WITH YOUR INDIVIDUAL USE OF THE SITE OR THE APP. In addition, you may bring a claim only on your own behalf. You will not participate in a class action or class-wide arbitration for any claims covered by these terms. 12. Changes to our Terms Citywire may change the Terms from time to time. Any such changes will be incorporated on our Site. Changes will take effect 30 days after notification. Your continued use of any part of the Site following such change shall be deemed to be your acceptance of such amended Terms. You acknowledge that you are solely responsible for checking these Terms from time to time to see the changes which have been made to these Terms. If you do not accept any such changes you should stop using our Site. 13. Breaches; Term and Termination 13.1 The Terms will take (re-take) effect at the time you access and use the Site. You agree that Citywire may terminate your membership or the agreement constituted by these Terms (as Citywire may choose) and restrict your access to the Site (or part thereof) without prejudice to any other rights or remedies that Citywire may have if Citywire is of the reasonable opinion that you have breached these Terms or acted inconsistently with the spirit of these Terms. The provisions concerning Intellectual Property Rights, The Site, Contributions, Non-Reliance, Limited Warranty, Liability, Breaches; Term and Termination, Enforcing Security, Governing Law, Arbitration, Injunctive Relief, Waiver and Severability and Entire Agreement the Solution Feedback, Confidentiality, will survive the termination of these Terms and Conditions for any reason. 13.2 You agree to indemnify Citywire against any and all actions, claims, costs, proceedings, losses, damages or liabilities arising from your use of the Site or App (including without limitation Contributions or Content) and/or in relation to any information or data you use or access by means of the Site. 13.3 You acknowledge that a breach of these Terms may give rise to civil damages and criminal penalties. Citywire reserve the right to take action against you to uphold these Terms and its rights, which may involve pursuing injunctive proceedings, as further set forth below. 14. Enforcing Security You may not use the Site, App, Content or any of Citywire’s data, systems, network, or services to engage in, foster, or promote illegal, abusive, or irresponsible behavior, including, without limitation, accessing or using data, systems, or networks in an unauthorized manner, attempting to probe, scan, or test the vulnerability of a Citywire system or network, circumventing any Citywire security or authentication measures, monitoring Citywire data or traffic, interfering with any Citywire services, collecting or using from the Site email addresses, screen names, or other identifiers, collecting or using from the Site information without the consent of the owner or licensor, using any false, misleading, or deceptive TCP-IP packet header information, using the Site to distribute software or tools that gather information, distributing advertisements, or engaging in conduct that it likely to result in retaliation against Citywire or its data, systems, or network. Actual or attempted unauthorized use of the Site may result in criminal and/or civil prosecution, including, without limitation, punishment under the Computer Fraud and Abuse Act of 1986 under U.S. federal law. Citywire reserves the right to view, monitor, and record activity through the Site without notice or permission from you. Any information obtained by monitoring, reviewing, or recording is subject to review by law enforcement organizations in connection with investigation or prosecution of possible criminal or unlawful activity through the Site as well as to disclosures required by or under applicable law or related government agency actions. Citywire will also comply with all court orders or subpoenas involving requests for such information. In addition to the foregoing, Citywire reserves the right to, at any time and without notice, modify, update, suspend, terminate, or interrupt operation of or access to the Site, or any portion of the Site in order to protect Citywire. 15. Governing Law; Void Where Prohibited All offers for all functions, products or services, which are made on the Site, are void if they are prohibited by applicable law. You access the Site on your own volition and are responsible for compliance with all applicable laws with respect to your own access and use of the Site and its offerings. These Terms have been made in and will be construed and enforced in accordance with the laws of the State of New York, U.S.A. as applied to agreements entered into and completely performed in the State of New York (without effect to its conflicts of law provisions). 16. Arbitration Subject to the right of Citywire to seek injunctive relief, disputes will be will be resolved by binding, individual arbitration under the American Arbitration Association pursuant to its Commercial Arbitration Rules or pursuant to its International Centre for Dispute Resolution (ICDR) Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having competent jurisdiction thereof. There is no judge or jury in arbitration, and court review of an arbitration award is limited. For any arbitration, the arbitrator(s) selected shall have a minimum of ten years of experience with and knowledge of the subject matter of the claim and dispute. The place of arbitration shall be in New York, New York. The arbitrator shall be bound by the provisions of these Terms and base the award on applicable law and judicial precedent. The arbitrator may award money or equitable relief in favor of only the individual party seeking relief and only to the extent necessary to provide relief warranted by that party’s individual claim. Similarly, an arbitration award and any judgment confirming it apply only to that specific case; it cannot be used in any other case except to enforce the award itself. However, the arbitrator(s) may award to the prevailing party all of its costs and fees. “Costs and fees” mean all reasonable pre-award expenses of the arbitration, including the arbitrator’s fees, administrative fees, travel expenses, out-of-pocket expenses such as copying and telephone, court costs, witness fees, and attorneys’ fees. Upon rendering a decision, the arbitrator(s) shall state in writing the basis for the decision, including the findings of fact and conclusions of law upon which the decision is based. The decision of the arbitrator(s) shall be final and binding upon the parties, and shall not be subject to appeal. You and Citywire have agreed to execute this Agreement in the English language, and all dispute settlement proceedings and communications, written and oral, between you and Citywire shall be conducted in the English language. 17. Injunctive Relief Notwithstanding the arbitration provision above, you acknowledge that any breach, threatened or actual, of these Terms, including, without limitation, with respect to unauthorized use of Citywire’s proprietary assets and especially, any Content, will cause irreparable injury to Citywire. Such injury would not be quantifiable in monetary damages and Citywire would not have an adequate remedy at law. You therefore agree that Citywire shall be entitled, in addition to other available remedies, to seek and be awarded an injunction or other appropriate equitable relief from a court of competent jurisdiction restraining any breach, threatened or actual, of your obligations under any provision of this Terms. Accordingly, you hereby waive any requirement that Citywire post any bond or other security in the event any injunctive or equitable relief is sought by or awarded to Citywire to enforce any provision of these Terms. 18. Waiver and Severability Failure to insist on strict performance of any of the terms and conditions of these Terms will not operate as a waiver of any subsequent default or failure of performance. No waiver by Citywire of any right under these Terms will be deemed to be either a waiver of any other right or provision or a waiver of that same right or provision at any other time. If any part of these Terms are determined to be invalid or unenforceable pursuant to applicable law including, but not limited to, the warranty disclaimers and the liability limitations set forth above, then the invalid or unenforceable provision will be deemed superseded by a valid, enforceable provision that most clearly matches the intent of the original provision and the remainder of these Terms shall continue in effect. 19. Notice; Consent to Electronic Communications When you visit this Site or send e-mails to us, you are communicating with us electronically. You consent to receive communications from us electronically. We will communicate with you by e-mail or by posting notices on this Site. You agree that all agreements, notices, disclosures and other communications that we provide to you electronically satisfy any legal requirement that such communications be in writing. 20. Entire Agreement You and Citywire are independent contractors. No joint venture, partnership, employment, or agency relationship exists between you and Citywire as a result of these Terms or your utilization of the Site. These Terms represents the entire agreement between you and Citywire with respect to your individual use of the Site. These Terms may not be assigned, transferred, conveyed, delegated, or granted by you to another party or person without the prior written consent of Citywire.
This communication is by Citywire Financial Publishers Ltd (“Citywire”) and is provided in Citywire’s capacity as financial journalists for general information and news purposes only. It is not (and is not intended to be) an any form of advice, recommendation, representation, endorsement or arrangement by Citywire or an invitation to invest or an offer to buy, sell, underwrite or subscribe for any particular investment. In particular, the information provided will not address your particular circumstances, objectives and attitude towards risk. Any opinions expressed by Citywire or its staff do not constitute a personal recommendation to you to buy, sell, underwrite or subscribe for any particular investment and should not be relied upon when making (or refraining from making) any investment decisions. In particular, the information and opinions provided by Citywire do not take into account your personal circumstances, objectives and attitude towards risk. Citywire uses information obtained primarily from sources believed to be reliable (such as company reports and financial reporting services) however Citywire cannot guarantee the accuracy of information provided, or that the information will be up-to-date or free from errors. Investors and prospective investors should not rely on any information or data provided by Citywire but should satisfy themselves of the accuracy and timeliness of any information or data before engaging in any investment activity. If in doubt about a particular investment decision an investor should consult a regulated investment advisor who specialises in that particular sector. Information includes but is not restricted to any video, article or guide content created or provided by Citywire. For your information we would like to draw your attention to the following general investment warnings: The price of shares and investments and the income associated with them can go down as well as up, and investors may not get back the amount they invested. The spread between the bid and offer prices of securities can be significant in volatile market conditions, especially for smaller companies. Realisation of small investments may be relatively costly. Some investments are not suitable for unsophisticated or non-professional investors. Appropriate independent advice should be obtained before making any such decision to buy, sell, underwrite or subscribe for any investment and should take into account your circumstances and attitude to risk. Past performance is not necessarily a guide to future performance.
Citywire Investment Warning
