'Perspectives' by Escala

In this episode, Investment Analyst, Darragh Kennelly talks to Jessica Cairns of Alphinity Asset Management to discuss recent progress from Australian companies transitioning to net zero. We hear about some of the innovative ways companies are reducing their CO2 emissions. Finally, the rise of A.I. will have many implications for ESG investing, the pair discuss some of the early work Alphinity have done around Responsible A.I. and the risks and opportunities it presents.

Toby Walsh is a professor and the Chief Scientist at UNSW's new AI Institute and has spent the past 40 years researching artificial intelligence. He is the author of several books on AI including "2062: The world that AI made". This presentation will discuss questions such as can we trust AI or will it increasingly deceive us? How can we ensure AI is harnessed as a force for good rather than for nefarious ends?

In Part 1 of this two-part podcast, we will be talking to Toby about the decisions that machines make, the biases that are embedded in them and the military use of AI and the implications it has for geopolitics.

(2:22) - Are we becoming less intelligent while the machines are becoming more intelligent? Or are we freeing up capacity to turn our mind to other, more important, tasks?

(5:27) - Can machines make better decisions than humans?

(7:45) - You talk about how the machines can make better decisions, but there's also the nefarious side, such as the privacy issue of being monitored and now the machines can do facial recognition.

(9:15) - So, this goes to the whole idea of the need to regulate artificial intelligence, but how do you do that in a way that doesn't then stifle the creativity and the future benefits? Is it possible to regulate AI and how is the best way to do it?

(11:17) - It feels like the technology is developing and progressing so quickly, the government is already behind the curve. How can they catch up and move with it?

(13:29) - I'm interested in your work on the United Nations campaign to ban autonomous killer robots. How is geopolitics going to change because of AI?

(16:12) - Is the Australian government involved in the military use of artificial intelligence?

(17:03) - Is there anyone developing autonomous military vehicles that are nuclear? It's one thing for a robot to shoot down a plane, but to start a nuclear war?

(19:25) - I'm guessing there is no override button that a human can push to at least stop it on time?

(19:42) - Who's working with governments on this? I understand Google made the decision to pull back from their involvement with the US military.

In this episode, Escala Partners CIO, Tracey McNaughton, talks about India's breakout moment and how investors can take advantage of it while being cognisant of the investment risks. The Australian earnings season reminds us of the diversity of impact that higher interest rates are having on different age groups in the economy.

(0:52) - The Reserve Bank of Australia met this week, no change in interest rates was the call. Does this mean we have reached the end of the tightening cycle? Is a rate cut around the corner?

(3:35) - You and the team have done some research on the investment case for India, can you share some of your insights?

(6:04) - Why is India seen as a key beneficiary of the China plus strategy?

(7:36) - It doesn't come without risk though, does it? What are some of the risks to investing in India?

(10:10) - What about investment challenges?

(12:38) - So, India is having a moment. The investment case is there albeit with some risks. How can investors access India?

(13:45) - The final numbers are in for the month of August. Equities were weaker, bonds were weaker and the Aussie dollar was weaker. A challenging month.

(16:59) - Just on China, we were talking in our morning meeting about how uneasy the current financial climate feels and where the next crisis could emerge from. China was mentioned.

In this episode, Escala Partners CIO, Tracey McNaughton, talks about where the CIO team believe the biggest risk is currently for financial markets and why investors need to be more discerning in their asset allocations as a result.

(0:56) - We are going to begin this week, Tracey, with a question from one of our clients – actually it's one that is asked often in our client meetings. What is the biggest risk right now?

(4:43) - Speaking of China, the economy remains under a dark cloud – we have had a lacklustre re-opening out of covid and now issues in its property market are boiling to the surface again.

(8:22) - How much will China factor into the deliberations of the Reserve Bank when it meets next month to consider interest rates?

(10:14) One of the biggest moves in the market over the past fortnight has been in bond markets. Bond yields around the world have risen sharply in the past week. What is driving it?

(12:38) - The recent Bank of America fund manager survey seems to confirm this more optimistic view.

(15:52) - Japan it seems is receiving more attention in the past few months than it has ever received in the past few decades. Why the sudden interest in Japan?

In this episode of The Fund Managers, Escala Partners Investment Analyst Stephen Dickinson talks to Jan Mühlemann from PG3. Jan discusses the royalties finance sector, the growth and opportunities in the royalties universe, and the benefits an allocation to the royalty finance sector can provide.

In this episode of The Fund Managers, Escala Investment Analyst David Bruty interviews Sam Twidale, Portfolio Manager of the DNR Capital Australian Emerging Companies Fund. Sam explains the importance of applying a consistent quality framework to small cap investing, how the fund's concentrated and style-neutral approach has allowed it to outperform across changing investment environments, and the outlook for the sector following a challenging period for returns.

In this episode, Escala Partners CIO, Tracey McNaughton, gives a wrap-up of the US earnings season; why Biden may just be the most "America First" President in over 30 years; and why the Reserve Bank of Australia is likely now done with rate hikes.

(0:49) - So Tracey, tell us, what mattered this past fortnight for financial markets?

(2:13) - We might leave the discussion on the accuracy of central bank forecasts for another day. Just on corporate earnings – what are the key themes that have emerged?

(6:31) - Manufacturing has been in recession in many countries and all for the same reason – coming out of covid consumers turned to spending on services rather than goods. Is there any evidence of a bottom being reached for manufacturing?

(8:41) - Let's turn to the news about the downgrade of US government debt. The last time this happened was in August 2011. I guess the question is, why now?

(11:57) - What are the implications of a higher level of government debt?

(14:01) - We had the Reserve Bank meeting last week where the decision was made to leave interest rates unchanged. We also got some revised economic forecasts.

(15:46) - Is the tightening in household budgets showing up in the data?

In this episode, Escala Partners CIO, Tracey McNaughton, shares her views on why the probability of a recession is higher in Australia than the US; what the greatest risk is for investors; and why royalties funds may get a boost from AI.

(1:23) - It doesn't seem that long ago that we were talking about a US recession and the need for rate cuts. That kind of talk has faded significantly hasn't it?

(4:52) - The US Federal Reserve is meeting this week with an announcement due Thursday morning our time. The market is expecting 'one and done' at this meeting, what are your thoughts?

(5:42) - The fund managers surveyed say the biggest tail risk right now is high inflation forcing the Federal Reserve to remain in restrictive territory damaging the economy in the process.

(7:37) - Speaking of fund managers, you and the CIO team are in the middle of Heat Week. Any insights so far?

(12:20) - Turning to Australia, what are our fund managers saying about the outlook here?

(14:14) - Finally, earnings season is underway in the US. Are companies feeling the heat from the rate rises over the last 15 months?

In this episode of The Fund Managers, Escala Partners Investment Analyst Stephen Dickinson talks to Mark Landau, Co-Founder and Co-Portfolio manager of L1 Capital. Mark discusses L1 Capital's investment approach and their focus on value and quality.

In this episode, Escala Partners CIO, Tracey McNaughton, discusses the challenges facing the Bank of England as it attempts to deal with its first wage-price spiral since the 1970s. It's the nightmare that haunts central bankers everywhere and is one reason why interest rates will remain higher for longer.

(0:48) - Central banks over the past few weeks have been surprising markets everywhere as the fight against inflation continues.

(5:00) - It is interesting you say the Bank of England governor is concerned inflation is not coming down fast enough.

(7:33) - The question on everyone's mind is where is the next problem to arise as a result of this rapid rate hike cycle?

(10:16) - Why were so many of these loans unhedged?

(12:00) - Given the surge in interest in private markets, is it possible the private equity market will break before the public one does?

(14:11) - July 14th is when the all-important US earnings season kicks off. What are you looking for?