Wed, Oct 14, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Sino Forest and lack of clarity in China equities - the importance of ESG analysis

Monday, June 27, 2011

The following article was written by Michael D. Underhill, Chief Investment Officer at Capital Innovations LLC.

As a veteran of the institutional investment management industry for over two decades, I have seen a series of booms and busts in the market driven by irrational investor behavior, opacity of markets and lack of information. Managing global timber, infrastructure and agribusiness strategies affords a unique view on the market and reinforces the importance of conducting one’s research into specific issues around company fundamentals and sustainability (i.e., a company‘s capacity to prosper in a hyper-competitive and changing global business environment).

Corporate governance issues have plagued investors particularly with respect to corporate management, transparency, and regulation in emerging markets. Three recent examples of this are Sino-Forest Corporation, China Forestry Holdings, and Cathay Forest Products.

The environmental, social and governance (known as “ESG”) issues around Sino-Forest Corp, which led to its current debacle, were a confluence of events which included:

  • The lack of clarity in the Chinese log market.
  • Investor concerns over the economic slowdown in China.

  • WSJ's Heard on the Street column raised concerns about Chinese agriculture and forestry companies.

  • The call to question of the credibility of Sino-Forest Management due t......................

    To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  2. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  3. Other Voices: Why fund boards must develop a response to cyber security and financial crime threats[more]

    This article was written by Carne, an international specialist in the provision of independent governance services and European management company solutions to the global asset management industry. A recent SEC action has highlighted how concerned regulators have become about data intru

  4. Hedge funds relatively resilient in Q3[more]

    Komfie Manalo, Opalesque Asia: Hedge funds fell in the third quarter as market conditions remain challenging, but still outperformed the S&P 500. The Lyxor Hedge Fund index was down 3.6% during Q3 while the S&P 500 fell 8.2%. According to Lyxor, "hedge funds were quite resilient in Q3. Falling en

  5. Hedge funds start Q4 on strong footing reversing the previous market downturn[more]

    Komfie Manalo, Opalesque Asia: Hedge funds started the fourth quarter on a strong footing, reversing the previous market downturn with the Lyxor Hedge Fund Index up 1.1% as of end Oct. 6 (-0.7% YTD). Event-driven outperformed, up 2.2% (-4.2% YTD), and CTAs underperformed (- 1.9%), extrapolatin