“SFDR will unleash a flood of new sustainability information for investors to interpret. An often-expressed concern is the availability of relevant corporate data that feeds into these disclosures by financial market participants. In many ways, the impact of the SFDR revolution is just beginning.”
— David Hendry Doyle, Head of Government Affairs & Public Policy for Europe, the Middle East, and Africa at S&P Global
During July we saw a slowdown of inflation in all major western countries, to levels last seen more than a year ago. The US consumer price index showed a year-on-year gain of 3%, the lowest since March 2021 — when the US was in the very beginning of the pandemic inflation surge. That is well below the peak of above 9% that we saw in June last year. In the UK and the Eurozone, we saw inflation levels of 7.9% and 5.5%, respectively (compared to peaks in excess of 10% in both). The question remains: will inflation fall back below central bank targets of 2%, or remain stubbornly above this level for the foreseeable future?
The focus now turns to how central banks move ahead with their monetary policy, and the effect that the most aggressive tightening cycle in 40 years will have on growth and corporate earnings, which we have not yet fully seen. The second-quarter earnings season recently began, led by banking giants JPMorgan Chase, Wells Fargo and Citigroup. Thus far results have been a mixed bag. Analysts at US financial data group FactSet, however, estimate an earnings decline of -7.1% for the S&P 500 companies, which would mark the largest earnings decline reported by the index since Q2 2020.
At AGC, we remain prudent about the ever-present credit risks that our type of investing inherently carries. We have a strong focus on good portfolio management and risk mitigation. SMEs all over the world need access to responsible financing, and we take pride in our mission of extending short-term working capital to good businesses all over the world.
In AGC news, we are pleased to let you know that our Funds now comply with the disclosure requirements for “Article 9” funds under the Sustainable Finance Disclosure Regulation (the “SFDR”) of the European Union. “Article 9” funds, under the SFDR, are defined as funds that have, as their objective, either sustainable investment or a reduction in carbon emissions. Our website has been updated to include further disclosures required under the SFDR and the periodic reports of the Fund.
In an effort to showcase our work and the fantastic SMEs that our investor capital helps to support, we will be taking some of our investors to meet with some of our portfolio companies in Bogota, Colombia on September 5th and 6th. If you missed the invitation and you would like to join, please contact Sudha.
In our latest case study, we explore Romania’s dynamic culinary evolution, spotlighting the rise of plant-based innovation by the local SME, Filgud. During a recent visit to Bucharest, AGC’s co-CEO Sudha Bharadia examined how our financing partner is helping Filgud reimagine dairy alternatives, local sustainable ingredients, and offerings to redefine traditional tastes. Amidst the challenges of a transforming food landscape, AGC’s unwavering support is empowering SMEs, like Filgud, to drive growth and shape the future of plant-based dining as financing helps propel a sustainable era of culinary possibilities.
Our priorities remain: safeguarding our investors’ capital, investing prudently and staying true to our mission of providing liquidity to SMEs. As always, if you have any comments, suggestions or concerns, please do not hesitate to contact Sudha Bharadia, Co-CEO at firstname.lastname@example.org.
The AGC Team