River and Mercantile’s James Sym: Will 2022 be the year the industry starts doing ESG properly?

by | Jan 10, 2022

Share this article

James Sym, Head of European Equities at River and Mercantile says that 2022 will be the year that the industry stops playing at ESG, and starts doing it properly. 

“I see three investment conclusions to be expressed in portfolios in 2022:

  • First, two years after the economic nadir we are moving from early-cycle to mid-cycle. This means we are more cautious on early-cycle stocks and those most at risk from an inventory correction, which we view as a distinct possibility in H2 2022 as supply chains normalise. However, cyclicals in the broadest sense should be okay, especially where they are exposed to areas such as tourism which are still depressed through covid policies.
  • Secondly, if inflation does prove to be more stubborn and capital more discriminating, which we think is likely, beware excessive valuations – by which we mean the over 10x sales, 50x earnings variety.
  • Thirdly, stick with the preeminent theme of this cycle, which is the opportunity afforded by decarbonisation. This is precisely where an investment boom – borderline mandated by governments in Europe, is most likely to take place.”

Click here to read the full article

Share this article

Related articles

Winners of the Protection Guru Awards 2022 are announced

Winners of the Protection Guru Awards 2022 are announced

Protection Guru, has today announced the winners of Protection Guru Awards 2022. In this, their second year, the awards have been established to recognise the leading lights of the protection industry. The team at IFA Magazine extends our congratulations to all this...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode