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How To Deal With The Rising Number Of Crash Warnings

• Global equity markets continue to climb the wall of worry

• They are not too much impressed about bad news like US Government shutdown, the stop-and-go with tariff and IA valuation concerns
• In the month of October developed large cap equities advanced 2.0%, global small caps gained 0.2% and emerging markets were up 4.2%.
• The deep trash rally observed since “liberation day» (stronger performance of fundamentally weaker companies) was most visible in Global Small Caps
• Artico Sustainable Emerging Market Fund is up 33.7% YTD, beating both standard and Paris-aligned benchmarks
• The current abundance of crash warnings and the AI-bubble should of course be taken seriously
• Equity market valuations are historically very high (see page 2)
• Markets are therefore exposed to significant correction risk
• Paradoxically, the public debate about the likelihood of an imminent crash provides for a healthy cushion as it keeps investors cautious and limits excessive leverage
• At least short-term, markets should continue their positive trend with support from strong company growth & profitability, lower interest rates and a less restrictive handling of the FED balance sheet 
• But even if a crash is not imminent, it cannot be considered as abandoned.
• The dangerous crashes occur when warnings are relatively scarce and complacency prevails
• In the meantime, investors are well advised to preserve their wealth for the longer term by investing in high quality real assets (real estate and equities)
• The long neglected emerging markets and global small caps seem to offer the best potential
• We recommend investing in robust investment strategies considering multiple factors and not overly dependent on a particular scenario.
• ARTICO Sustainable Equity Funds (all Paris-aligned and classified as Article 9 SFDR) follow a high-quality, systematic investment strategy with a unique combination of:
• a) superior fundamental characteristics,
• b) very high ESG/Sustainability Scores and
• c) very low carbon footprint aligned with Paris-climate objectives

ARTICO is «Best Sustainable Equity Manager Switzerland 2024» by cfi.co

We are delighted to share with you that our win as “Best Sustainable Equity Manager Switzerland 2024” has been officially announced.
We believe our approach of combining superior fundamental criteria with high sustainability scores and a clear decarbonization path continues to be a unique feature which sets us apart from others
Please find the link to the official online announcement: https://cfi.co/awards/best-practice/2024/artico-equity-team-serafin-asset-management-best-sustainable-equity-fund-manager-switzerland-2024/
Best regards
Gabriel

ARTICO funds get approval for classification under Article 9 SFDR

• Luxembourg regulator approved classification of all ARTICO funds as article 9 SFDR.
• This means the highest sustainability category: Our funds follow a clear decarbonisation objective
• Many impact funds are concentrated on a particular sector or theme and are therefore only suitable for a marginal investment allocation
• ARTICO Sustainable Funds can replace a larger portion of traditional investments for more impact as they do not compromise on investment performance nor on diversification
• Besides the positive impact, the inclusion of ESG & Carbon Footprint criteria will also benefit future outperformance as it is a good proxy for better managed companies