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For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
English
  • English
  • French
en
  • en
  • fr
© 2019. BNY Mellon Investment Management International Limited. All rights reserved.
IDEAS AND KNOWLEDGE TO INSPIRE YOUR INVESTMENTS THINKING
5 April 2018

The risk business: towards a new paradigm?

Geopolitical analysis is an essential piece of investment management that many firms currently neglect. We think markets are not fairly pricing the level of current and potential global geopolitical risk due to distortions such as central bank liquidity. Another explanation for the recent complacency toward geopolitical risk is the rise of exchange-traded funds (ETFs), which has distorted capital flows into equities. However, recent price action of political risk-off assets including gold, the Swiss franc, the Japanese yen and the “Defence” Index (Dow Jones US Select Aerospace & Defence Index) is becoming more acute in response to the most recent geopolitical events. In short, geopolitical risk is starting to get noticed, and we believe active equity asset managers are well positioned to capture the benefits and avoid the pitfalls.

 

Jim Lydotes – portfolio manager and Richard Bullock – senior analyst. Mellon

Please note the content on this website is for Investment Professionals only and should be shared responsibly. No other persons should rely on the information contained within this website.

 

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds.

 

Mellon was formed on 31 January 2018, through the merger of The Boston Company and Standish into Mellon Capital. Effective 2 January 2019, the combined firm was renamed Mellon Investments Corporation.

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