Artificial intelligence (AI) is often discussed as a technology challenge, but its successful adoption is fundamentally a leadership and business transformation challenge.

In this recent Human Resources Director article, Ankur Saxena, Director, Technology Strategy, and Diana Bartolic, Head of Human Resources, share their perspectives on why AI enablement requires more than new tools and technology. It requires dedicated leadership, effective governance, thoughtful change management and a focus on helping people adapt as roles and ways of working evolve.

As Ankur notes, AI is “largely a business change impact initiative and less of a technology initiative.” Diana highlights the importance of supporting employees through a period of significant workplace transformation and ensuring organizations have the right structures in place to navigate change responsibly.

At CC&L Financial Group, we believe creating long-term value from AI means investing not only in technology, but also in the people, processes and leadership needed to make adoption effective, responsible and aligned with business objectives.

Read the full article: AI enablement officer: the new sheriff in transformation town

The post AI is less about tech and more about business: Ankur and Diana weigh in appeared first on Groupe financier Connor, Clark & Lunn ltée.

Peter Muldowney a corédigé, pour Plans & Trusts, un guide pratique à l’intention des administrateurs de régimes de retraite et d’avantages sociaux. L’article présente des mesures concrètes pour cerner, évaluer et gérer les risques, tout en protégeant la réputation des régimes, en renforçant leur résilience et en préservant leur valeur à long terme.

Veuillez noter que cet article est écrit en anglais.

The post Un guide pratique de la gestion des risques d’entreprise appeared first on Groupe financier Connor, Clark & Lunn ltée.

Investor views on China have become increasingly polarized, creating both challenges and opportunities for active managers. While concerns about economic growth, geopolitical tensions and market regulation continue to shape sentiment, China’s scale and importance within the emerging markets universe make it difficult for investors to ignore.

In a recent interview with Benefits and Pensions Monitor, Michael Mortimore discusses the factors influencing China’s investment outlook and why a selective, fundamentals-driven approach remains essential in today’s environment. He explores the structural challenges facing the Chinese economy, the implications for investors and the developments that could help support a more sustainable path forward.

As Michael explains, “If China was able to reinvigorate domestic demand and also curb the incentives that basically fuel all this excess capacity, we think that that would be a really, really positive development and really bullish for long term prospects for China as a whole and the sustainability of its economic model.”

Read the full article for Michael’s perspective on navigating uncertainty, evaluating risk and identifying long-term opportunities in one of the world’s most consequential investment markets: Is China still worth the risk for emerging market investors?

The post China beyond the headlines appeared first on Groupe financier Connor, Clark & Lunn ltée.

Investor views on China have become increasingly polarized, creating both challenges and opportunities for active managers. While concerns about economic growth, geopolitical tensions and market regulation continue to shape sentiment, China’s scale and importance within the emerging markets universe make it difficult for investors to ignore.

In a recent interview with Benefits and Pensions Monitor, Michael Mortimore discusses the factors influencing China’s investment outlook and why a selective, fundamentals-driven approach remains essential in today’s environment. He explores the structural challenges facing the Chinese economy, the implications for investors and the developments that could help support a more sustainable path forward.

As Michael explains, “If China was able to reinvigorate domestic demand and also curb the incentives that basically fuel all this excess capacity, we think that that would be a really, really positive development and really bullish for long term prospects for China as a whole and the sustainability of its economic model.”

Read the full article for Michael’s perspective on navigating uncertainty, evaluating risk and identifying long-term opportunities in one of the world’s most consequential investment markets: Is China still worth the risk for emerging market investors?

The post China beyond the headlines appeared first on Groupe financier Connor, Clark & Lunn ltée.

The Fed’s latest semi-annual Monetary Policy Report to Congress contains a paragraph discussing recent trends in the M2 money measure, included, apparently, at the behest of Chair Warsh.

In follow-up Q&A, Chair Warsh explained that he is not a “monetarist” but nevertheless holds the “old-fashioned view that monetary policy has something to do with money”.

Meanwhile, perhaps not coincidentally, former Fed Governor Miran has co-authored a paper that attempts to rehabilitate the P* monetarist approach to inflation forecasting.

P* is the level of prices implied by the current money stock, incorporating assumptions about trend GDP and velocity. The gap between P* and the prevailing price level P is a measure of future inflationary (or disinflationary) pressure. Miran et al present estimates of the price gap based on M2 and other (Divisia) money measures, showing that these gaps exhibit a statistically significant relationship with future inflation.

Both the Fed report and the Miran paper suggest that current monetary trends are non-inflationary. The former notes that annual M2 growth averaged 4.7% in the first five months of the year, which is “closer to the range typically observed in the 2010s”, when inflation undershot the 2% target.

Similarly, the current price gap estimates presented by Miran et al are all around zero, implying that “the stance of monetary policy is quite close to neutral right now, putting neither upward nor downward pressure on the inflation rate”.

A cynic might wonder if the appearance of these references to monetary trends has been motivated by a search for arguments to push back against a strengthening case for policy tightening based on conventional economic data (reflected in the Fed policy direction model discussed in previous posts).

In any case, the assessment that current trends are unthreatening may soon be out-of-date. Year-to-date annual M2 growth of 4.7% conceals a pick-up in six-month expansion to a 7.1% annualised pace in May. The broader M2+ measure calculated here rose by 8.2% over the same period – see chart 1.

Chart 1

The recent acceleration suggests that the Miran et al price gap estimates are now positive.

By contrast, six-month growth of the Bank of England’s M4ex broad money aggregate was 4.4% annualised in May, with the non-financial M4 measure preferred here rising by just 2.8%.

The Bank’s quarterly Monetary Policy Report (or Inflation Report before November 2019) contained no mention of money between May 2019 and May 2023, a period during which annual non-financial M4 growth reached 16.0%. A reappearance in August 2023 coincided with the annual rate of change turning negative. Editions in May 2024 and May 2025 included boxes discussing broad money developments in detail.

Still, there is no evidence from the minutes that monetary considerations have played a role in any decisions of any MPC member. Regular references to money trends are, it appears, little more than a box-ticking exercise. The same will likely be true at the Fed.

The post A cynical view of central bank money-speak appeared first on Groupe financier Connor, Clark & Lunn ltée.

The Fed’s latest semi-annual Monetary Policy Report to Congress contains a paragraph discussing recent trends in the M2 money measure, included, apparently, at the behest of Chair Warsh.

In follow-up Q&A, Chair Warsh explained that he is not a “monetarist” but nevertheless holds the “old-fashioned view that monetary policy has something to do with money”.

Meanwhile, perhaps not coincidentally, former Fed Governor Miran has co-authored a paper that attempts to rehabilitate the P* monetarist approach to inflation forecasting.

P* is the level of prices implied by the current money stock, incorporating assumptions about trend GDP and velocity. The gap between P* and the prevailing price level P is a measure of future inflationary (or disinflationary) pressure. Miran et al present estimates of the price gap based on M2 and other (Divisia) money measures, showing that these gaps exhibit a statistically significant relationship with future inflation.

Both the Fed report and the Miran paper suggest that current monetary trends are non-inflationary. The former notes that annual M2 growth averaged 4.7% in the first five months of the year, which is “closer to the range typically observed in the 2010s”, when inflation undershot the 2% target.

Similarly, the current price gap estimates presented by Miran et al are all around zero, implying that “the stance of monetary policy is quite close to neutral right now, putting neither upward nor downward pressure on the inflation rate”.

A cynic might wonder if the appearance of these references to monetary trends has been motivated by a search for arguments to push back against a strengthening case for policy tightening based on conventional economic data (reflected in the Fed policy direction model discussed in previous posts).

In any case, the assessment that current trends are unthreatening may soon be out-of-date. Year-to-date annual M2 growth of 4.7% conceals a pick-up in six-month expansion to a 7.1% annualised pace in May. The broader M2+ measure calculated here rose by 8.2% over the same period – see chart 1.

Chart 1

The recent acceleration suggests that the Miran et al price gap estimates are now positive.

By contrast, six-month growth of the Bank of England’s M4ex broad money aggregate was 4.4% annualised in May, with the non-financial M4 measure preferred here rising by just 2.8%.

The Bank’s quarterly Monetary Policy Report (or Inflation Report before November 2019) contained no mention of money between May 2019 and May 2023, a period during which annual non-financial M4 growth reached 16.0%. A reappearance in August 2023 coincided with the annual rate of change turning negative. Editions in May 2024 and May 2025 included boxes discussing broad money developments in detail.

Still, there is no evidence from the minutes that monetary considerations have played a role in any decisions of any MPC member. Regular references to money trends are, it appears, little more than a box-ticking exercise. The same will likely be true at the Fed.

The post A cynical view of central bank money-speak appeared first on Groupe financier Connor, Clark & Lunn ltée.

Peter Muldowney co-authored a practical guide to enterprise risk management for boards overseeing pension and benefits programs, published in Plans & Trusts. The article outlines actionable steps to identify, assess and respond to risk while protecting plan reputation, resilience, and long-term value.

The post A practical guide to enterprise risk management appeared first on Groupe financier Connor, Clark & Lunn ltée.

Is China still worth the risk for emerging market investors?

In a recent interview with Benefits and Pensions Monitor, Michael Mortimore discusses how investors should think about China’s role within emerging market portfolios, the associated risks, and the importance of maintaining a disciplined investment approach.

Michael notes that that while China’s late-2024 stimulus triggered a brief rally in consumer stocks, the momentum faded fast and conviction that Beijing will stand behind household spending has eroded. Of this he says “Consumer demand and consumer sentiment looks incredibly weak and deflationary.”

 
Read the full article

The post BPM speaks with Michael Mortimore about China’s challenges and opportunities appeared first on Groupe financier Connor, Clark & Lunn ltée.

What is the Sustainable Finance Disclosure Regulation?

The Sustainable Finance Disclosure Regulation (SFDR) was introduced by the EU Commission as a core component of its 2018 Sustainable Finance Action Plan. As a key pillar of the EU Sustainable Finance agenda, SFDR aims to improve transparency, prevent greenwashing and help investors make informed sustainable investment decisions. To do so, the SFDR introduced mandatory disclosure requirements around environmental, social and governance (ESG) metrics at both the entity and the product levels.

An imperfect system

Since taking effect in March 2021, the SFDR has faced implementation challenges and criticism from market participants. In a 2023 consultation, the EU Commission found that 83% of respondents believed the regulation was being used as a product label and marketing tool, rather than solely as a disclosure framework. Respondents highlighted several concerns, including greenwashing risks linked to inconsistent product classifications, unclear definitions, limited ESG data availability and higher compliance costs. Together, these challenges have made implementation more difficult and limited SFDR’s ability to provide transparent, comparable information on sustainable investments.

This has prompted the EU Commission to consider revisions to the framework, culminating in the draft SFDR 2.0 proposal.

Is it the end of Article 8 and 9?

Not quite. Rather than eliminating these categories altogether, the proposal replaces the existing Article 6/8/9 disclosure framework with a revised product classification system that introduces clearer definitions, eligibility criteria and sustainability thresholds.

What might change?

Contribution requirement

• One of the most significant proposed changes is that at least 70% of a fund’s assets would need to satisfy the sustainability criteria of its chosen category, whereas the current SFDR provides managers with greater flexibility to determine the applicable threshold.

Transition (Article 7)

• This entirely new proposed category, Transition, is intended for funds investing in companies that are on a credible pathway towards improved sustainability performance.

ESG Basics (Article 8)

• To qualify under the category of ESG Basics, investments would generally need to satisfy at least one of several sustainability tests such as: outperforming the benchmark on ESG ratings or key sustainability indicators, demonstrating improved sustainability characteristics or meeting minimum sustainability standards. This marks a significant shift from the current framework, replacing the broad flexibility currently afforded to managers with more standardized qualification criteria.

Sustainable (Article 9)

• The Sustainable category remains the highest sustainability classification and is expected to be subject to the most stringent eligibility criteria. Although there is broad support for maintaining this as the highest sustainability category, negotiations continue around how sustainable investments should be defined in practice.

Mandatory exclusion criteria

• Under the current regulation, investing in an ESG or sustainable fund does not necessarily prevent exposure to controversial sectors, such as fossil fuels, tobacco or prohibited weapons. Under the proposed SFDR 2.0 framework, mandatory exclusion criteria would apply across all sustainability categories, with the scope and stringency of exclusions increasing for higher-ambition categories.

These proposed changes would work to ensure that a fund could substantiate its sustainability claim with clearly measurable criteria, assuaging greenwashing risks.

Where do negotiations stand?

The legislative process is progressing rapidly. The EU Council published its negotiating position in June, while the European Parliament is expected to adopt its position shortly. Once both institutions have finalized their positions, trilogue negotiations with the European Commission will begin alignment on the final SFDR 2.0 framework.

Implementation timeline

The trilogue negotiations are expected to begin this autumn. While the timing remains uncertain, the legislative process is likely to extend through 2027, followed by a transition period before the new rules apply. Based on the current timetable, SFDR 2.0 is unlikely to become applicable before 2029, although the exact implementation date will depend on the pace of negotiations and the final transition period.

What does this mean for investors?

While the final rules are still being negotiated, the overall direction is becoming increasingly clear: sustainability claims will need to be supported by more objective and measurable criteria. An analysis by Clarity AI estimates that around 40% of current Article 9 funds would not meet the proposed exclusion rules of the highest sustainability category. 80% of Article 8 funds would experience the same challenge.

For asset managers and investors, these reforms could materially affect how sustainable funds are designed, marketed and compared, making the final outcome particularly relevant for investment strategies with ESG objectives. Funds currently designated as sustainable under Article 8 or 9 may need to be strategically revisited with portfolio or policy adjustments if the intent is to maintain the same designation levels.

At Global Alpha, we are following these developments closely. While SFDR 2.0 remains subject to negotiation, the direction is clear: sustainability claims will increasingly need to be supported by objective, measurable criteria. We will continue to monitor the legislative process and its implications for the sustainable investment landscape as the final framework takes shape.

The post Beyond the label: How SFDR 2.0 could redefine sustainable funds appeared first on Groupe financier Connor, Clark & Lunn ltée.

What is the Sustainable Finance Disclosure Regulation?

The Sustainable Finance Disclosure Regulation (SFDR) was introduced by the EU Commission as a core component of its 2018 Sustainable Finance Action Plan. As a key pillar of the EU Sustainable Finance agenda, SFDR aims to improve transparency, prevent greenwashing and help investors make informed sustainable investment decisions. To do so, the SFDR introduced mandatory disclosure requirements around environmental, social and governance (ESG) metrics at both the entity and the product levels.

An imperfect system

Since taking effect in March 2021, the SFDR has faced implementation challenges and criticism from market participants. In a 2023 consultation, the EU Commission found that 83% of respondents believed the regulation was being used as a product label and marketing tool, rather than solely as a disclosure framework. Respondents highlighted several concerns, including greenwashing risks linked to inconsistent product classifications, unclear definitions, limited ESG data availability and higher compliance costs. Together, these challenges have made implementation more difficult and limited SFDR’s ability to provide transparent, comparable information on sustainable investments.

This has prompted the EU Commission to consider revisions to the framework, culminating in the draft SFDR 2.0 proposal.

Is it the end of Article 8 and 9?

Not quite. Rather than eliminating these categories altogether, the proposal replaces the existing Article 6/8/9 disclosure framework with a revised product classification system that introduces clearer definitions, eligibility criteria and sustainability thresholds.

What might change?

Contribution requirement

• One of the most significant proposed changes is that at least 70% of a fund’s assets would need to satisfy the sustainability criteria of its chosen category, whereas the current SFDR provides managers with greater flexibility to determine the applicable threshold.

Transition (Article 7)

• This entirely new proposed category, Transition, is intended for funds investing in companies that are on a credible pathway towards improved sustainability performance.

ESG Basics (Article 8)

• To qualify under the category of ESG Basics, investments would generally need to satisfy at least one of several sustainability tests such as: outperforming the benchmark on ESG ratings or key sustainability indicators, demonstrating improved sustainability characteristics or meeting minimum sustainability standards. This marks a significant shift from the current framework, replacing the broad flexibility currently afforded to managers with more standardized qualification criteria.

Sustainable (Article 9)

• The Sustainable category remains the highest sustainability classification and is expected to be subject to the most stringent eligibility criteria. Although there is broad support for maintaining this as the highest sustainability category, negotiations continue around how sustainable investments should be defined in practice.

Mandatory exclusion criteria

• Under the current regulation, investing in an ESG or sustainable fund does not necessarily prevent exposure to controversial sectors, such as fossil fuels, tobacco or prohibited weapons. Under the proposed SFDR 2.0 framework, mandatory exclusion criteria would apply across all sustainability categories, with the scope and stringency of exclusions increasing for higher-ambition categories.

These proposed changes would work to ensure that a fund could substantiate its sustainability claim with clearly measurable criteria, assuaging greenwashing risks.

Where do negotiations stand?

The legislative process is progressing rapidly. The EU Council published its negotiating position in June, while the European Parliament is expected to adopt its position shortly. Once both institutions have finalized their positions, trilogue negotiations with the European Commission will begin alignment on the final SFDR 2.0 framework.

Implementation timeline

The trilogue negotiations are expected to begin this autumn. While the timing remains uncertain, the legislative process is likely to extend through 2027, followed by a transition period before the new rules apply. Based on the current timetable, SFDR 2.0 is unlikely to become applicable before 2029, although the exact implementation date will depend on the pace of negotiations and the final transition period.

What does this mean for investors?

While the final rules are still being negotiated, the overall direction is becoming increasingly clear: sustainability claims will need to be supported by more objective and measurable criteria. An analysis by Clarity AI estimates that around 40% of current Article 9 funds would not meet the proposed exclusion rules of the highest sustainability category. 80% of Article 8 funds would experience the same challenge.

For asset managers and investors, these reforms could materially affect how sustainable funds are designed, marketed and compared, making the final outcome particularly relevant for investment strategies with ESG objectives. Funds currently designated as sustainable under Article 8 or 9 may need to be strategically revisited with portfolio or policy adjustments if the intent is to maintain the same designation levels.

At Global Alpha, we are following these developments closely. While SFDR 2.0 remains subject to negotiation, the direction is clear: sustainability claims will increasingly need to be supported by objective, measurable criteria. We will continue to monitor the legislative process and its implications for the sustainable investment landscape as the final framework takes shape.

The post Beyond the label: How SFDR 2.0 could redefine sustainable funds appeared first on Groupe financier Connor, Clark & Lunn ltée.