An old saying in the industry says: fund management is risk management. The risks that need to be managed have changed noticeably and have become global ecological risks.
If an important actor dissolves his cognitive dissonance by not only repressing the problem, but simply denying it, then this also has global consequences. The most important global decision-makers currently regard ESG (Environmental, Social and Governance) risks, above all environmental risks, as the greatest risks. Read more about cognitive dissonance in our new ESG Letter about Global Risk.
Who doesn’t know it – sitting together in a boisterous atmosphere, with a glass of champagne in your hand. Or two. Christmas is the celebration of joy, of Christmas markets, and of excessive alcohol consumption: a good reason for us to dedicate this ESG Letter to the topic of alcohol.
The Austrian term “Komasaufen“, which refers to the practice of binge drinking, received the “Doublespeak Award” 2007. The award followed significant media coverage and discussion on the alcoholic excesses that young people were engaging in with extremely sweet alcoholic beverages.
Many people harbour an undefined fear of psychologists. Maybe it is the fear of someone being able to look inside them and know what they are thinking. And, let’s be honest: how many times didn’t you think: “Thank God nobody knows what I am thinking right now”? But that was in the past. Nowadays, Google, Facebook, Amazon et al. know quite well what we are thinking. Apparently even better than we do ourselves or the people close to us.
Big Data contains a lot of good, but also a lot of controvery. Just think of social scoring, for example. Your friends, your media consumption, your daily habits, everything you do is recorded, evaluated, and channelled into a rating.
The month since the previous meeting in July had been a positive one for investors willing to take risks. Thus, the optimistic risk stance of our team paid off. It is therefore not surprising that the team remains optimistic.
In the beginning of July our Investment Committee held its monthly meeting. Despite a largely negative month on the markets, our risk stance has hardly changed relative to the previous month.
Editorial: Gerold Permoser, CIO and CSIO of Erste Asset Management, comments on the topic of this issue.
Lasting Words: “Everything used to be better. What is plastic today was natural rubber back then,” says Gerold Permoser, CIO and CSIO of Erste AM.