MCB Investment Services
Climate Impact & Sustainability Data (2020-05, 2020-08, 2022-04)
Reporting Period: 2020-05
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- COVID-19 pandemic's devastating economic damage
- Supply chain disruptions
- Potential market correction
Mitigation Strategies
- Balanced exposure between growth and value stocks
- Emphasis on high-quality companies
- Favor large cap stocks for resilience
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2020-08
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- COVID-19 pandemic impacting economic recovery and creating uncertainty.
- Rising COVID-19 cases leading to some reopening plans being rolled back.
- Slowing economic momentum.
- US-China tensions.
- Emerging markets' inability to convert economic growth into profits and shareholder value.
- Political instability in some emerging markets.
- Brazil and India's difficulty containing COVID-19.
Mitigation Strategies
- Maintaining an overweight equities recommendation, favoring stocks over bonds in a low-rate environment.
- Favoring large cap stocks for their stronger financial positions.
- Favoring growth stocks for their ability to grow earnings without much help from the economy.
- Favoring emerging market equities due to China's relatively stronger economy, a weakening US dollar, and low valuations.
- A blend of high-quality intermediate bonds with a modest underweight to US Treasuries and an emphasis on short-to-intermediate maturities with sector weightings tilted toward mortgage-backed securities (MBS).
- Favoring precious metals due to safe-haven buying, lower interest rates, and massive stimulus from the Fed.