Finance
Trafigura to pilot sustainable supply chain finance programme for Mexican mining companies with eFactor Network
![Trafigura to pilot sustainable supply chain finance programme for Mexican mining companies with eFactor Network Trafigura to pilot sustainable supply chain finance programme for Mexican mining companies with eFactor Network](https://www.trafigura.com/media/3566/inigo-flores.jpg?center=0.31531531531531531,0.43220338983050849&mode=crop&width=1200&height=630)
Mexico, 14 December 2022 – Trafigura Pte Ltd (“Trafigura”), a market chief within the international commodities trade, in collaboration with eFactor Community and quite a lot of monetary establishments, are piloting a Sustainable Provide Chain Finance programme for mining corporations in Mexico.
The programme – the primary of its sort and offering a mannequin that may be scaled throughout the area – is structured to enhance mining corporations’ working capital while driving accountable sourcing practices alongside the metals worth chain.
By way of the programme, Trafigura’s suppliers of steel concentrates will obtain accelerated funds for merchandise utilizing eFactor’s digital factoring platform, while benefitting from a bespoke programme of site-based capability constructing on matters of worldwide significance, comparable to respect for safety and human rights.
The programme immediately enhances Trafigura’s present accountable sourcing due diligence efforts and can reply to dangers recognized inside the worth chain. Along with money circulation advantages, Trafigura and monetary establishments concerned will prolong improved monetary phrases, together with preferential rates of interest, as every firm’s Environmental, Social and Governance (ESG) efficiency improves. Initially the programme will drive alignment with the internationally recognised Voluntary Rules on Human Rights (VPSHR) which information companies on conduct their operations while respecting human rights. The VPSHR has vital significance in advanced working environments the place corporations try to construct trusted and harmonious relationships with native communities while guaranteeing that their safety suppliers respect human rights.
Progress in aligning with the necessities of the VPSHR can be formally assessed on an annual foundation by an impartial assurance supplier. A world monetary establishment will act as ESG Coordinator, working with Trafigura to make sure the robustness of the programme towards chosen key efficiency indicators.
“We drastically worth the collaboration with Trafigura and monetary establishments on this programme, which along with benefiting mining corporations and their suppliers with enticing financing situations, brings stability and transparency to the availability chains of a sector of nice significance for the Mexican economic system by incorporating ESG incentives,” stated Héctor de la Garza, CEO of eFactor Community.
“Trafigura is dedicated to working with the mining neighborhood throughout Latin America to supply commodities responsibly. This pilot programme gives a robust illustration of how totally different worth chain actors can, and should more and more collaborate to advertise good observe in a fancy working atmosphere,” stated Inigo Flores Piran, Trafigura’s Chief Monetary Officer for Latin America.
ENDS
For additional info please contact:
eFactor Community Workplace: Tel: 52 8182480800 or Electronic mail: ventas@efactornetwork.com
Trafigura Montevideo Press Workplace: Tel: +598 2518 8188 or Electronic mail: media@trafigura.com
About Trafigura
Based in 1993, Trafigura is among the largest bodily commodities buying and selling teams on the earth. On the coronary heart of worldwide provide, Trafigura connects the world with the important assets it wants. By way of our Oil & Petroleum Merchandise, Metals & Minerals, and Energy & Renewables divisions, we deploy infrastructure, abilities and a world community to maneuver commodities from the place they’re plentiful to the place they’re wanted most, forming sturdy relationships that make provide chains extra environment friendly, safe and sustainable.
Trafigura additionally owns and operates quite a lot of industrial property together with multi-metals producer Nyrstar and gasoline storage and distribution firm Puma Power; and joint ventures Impala Terminals, a port and logistics supplier, and Nala Renewables, an influence and renewable vitality funding and improvement platform. Trafigura is owned by its staff and employs over 12,000 individuals working in 61 international locations.
Go to: www.trafigura.com
About eFactor Community
eFactor Community is a Fintech firm, chief in working capital financing in Mexico, which helps massive buying organizations enhance their working capital by extending cost phrases with out rising the burden of their provide chain, in addition to its suppliers by giving the choice of acquiring an advance cost at enticing financing charges. It has alliances with improvement banks comparable to IFC World Financial institution, IDB Make investments, Bancomext and PrimeRevenue. After over a decade of operations, its community contains greater than 16,000 corporations, suppliers, bottomers and technological companions. eFactor operates in 20+ international locations the place they pay firm suppliers in numerous currencies and has granted 5 billion {dollars} by way of its platform.
Extra details about e-Issue community may be discovered at www.efactornetwork.com
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Finance
What working on Wall Street taught a former NFL star about money
No two roads to financial literacy are the same. Some learn lessons in school, some from parents, others through trial and error.
In this episode of “Financial Freestyle,” host Ross Mac is joined by Brandon Copeland, a former NFL player turned professor, author, and entrepreneur. Copeland, a 10-year NFL veteran, shares the motivation behind his financial literacy journey. “As I went into the league, it was all about startup capital,” explains Copeland. “It was all about how to take this opportunity to make some money and how to flip it.”
Copeland recounts his early experience with day trading, which he began during the early years of his NFL career. Armed with knowledge from his internship at UBS, he dives into the lessons learned, including a costly Nike-options trade that faltered due to geopolitical tensions in Greece. “I learned a tough lesson there, which was one don’t get greedy,” said Copeland. “I need to learn how to better understand leverage and de-risk some of my trades… I need to find things to invest in that I control.” That lesson ultimately led him to real estate investing.
Today, Copeland and his wife, Taylor Copeland, are the founders of BTC Investments, which is a real estate investment portfolio holding $203 million.
“Financial Freestyle with Ross Mac” on Yahoo Finance is dedicated to promoting economic prosperity for all. Through expert insights, practical advice, and inspiring success stories, we empower you to build and grow wealth. Join us on this transformative journey toward financial freedom and inclusive economic growth.
This post was written by John Tejada.
Finance
Prediction: This Unstoppable Vanguard ETF Will Keep Beating the S&P 500 Over the Long Term
The S&P 500 (SNPINDEX: ^GSPC) is an index of 500 companies listed on U.S. stock exchanges. It’s a prestigious achievement for any company to be admitted into the index, and only the highest-quality names make the cut.
Selection is at the discretion of the Index Committee, but companies must be profitable, and they also need a market capitalization of at least $18 billion. That figure rises over time, because the S&P 500 is weighted by market cap, which means the largest companies in the index have a greater influence over its performance than the smallest.
As a result, technology has become the largest sector in the index with a weighting of 31.4%. It includes trillion-dollar giants Microsoft, Apple, and Nvidia.
Meet the S&P 500 Growth index
The S&P 500 Growth index holds around 231 of the best-performing stocks in the regular S&P 500, and excludes the rest. It selects those stocks based on factors like their momentum and the sales growth of the underlying companies.
Therefore, it’s no surprise the tech sector has a whopping 50.2% weighting in the Growth index. Nvidia, for example, grew its revenue by 262% year over year during its most recent quarter, and its stock has soared 200% over the past 12 months alone.
But here’s the best part. The Growth index rebalances every quarter, which means it removes stocks that no longer meet its criteria for inclusion and replaces them with more suitable candidates. As a result, this index has typically outperformed the regular S&P 500 over the long term.
The Vanguard S&P 500 Growth ETF tracks the S&P 500 Growth index
The Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG) is designed to track the performance of the S&P 500 Growth index by holding the same stocks and maintaining similar weightings.
The below table shows the top five holdings in the Vanguard ETF, and how their weightings compare to the regular S&P 500:
Stock |
Vanguard ETF Weighting |
S&P 500 Weighting |
---|---|---|
1. Apple |
12.28% |
6.89% |
2. Microsoft |
11.93% |
6.70% |
3. Nvidia |
11.04% |
6.20% |
4. Amazon |
4.43% |
3.69% |
5. Meta Platforms |
4.17% |
2.24% |
Data source: Vanguard. Portfolio weightings are accurate as of July 31, 2024, and are subject to change.
The Vanguard ETF delivered a return of 36.5% over the past year, comfortably outperforming the S&P 500, which is up 30.2%:
There were two factors at play:
-
The five stocks in the above table have delivered an average return of 76.7% over the past year, and since they have a much higher weighting in the Vanguard ETF relative to the S&P 500, that contributed to the outperformance of the ETF.
-
As I mentioned earlier, the Growth index (and by extension, the Vanguard ETF), only holds the top-performing stocks from the S&P 500 and excludes the laggards, which also contributed to the higher return in the ETF.
The Vanguard ETF can outperform the S&P 500 over the long term
The Vanguard ETF has delivered a compound annual return of 15.9% since it was established in 2010, beating the average annual gain of 13.7% in the S&P 500 over the same period. While that 2.2 percentage point difference each year doesn’t sound like much, it makes a big impact in dollar terms thanks to the effects of compounding:
Starting Balance (2010) |
Compound Annual Return |
Balance in 2024 |
---|---|---|
$10,000 |
15.9% (Vanguard ETF) |
$78,916 |
$10,000 |
13.7% (S&P 500) |
$60,345 |
Calculations by author.
If technologies like cloud computing, semiconductors, and artificial intelligence continue to drive the tech sector forward, the largest holdings in the Vanguard ETF are likely to remain constant in the coming years. In that scenario, I predict the ETF will continue outperforming the S&P 500.
However, even if there is a shift in market leadership, the Growth index will rebalance as necessary. Therefore, if the Vanguard ETF does suffer a period of underperformance relative to the S&P 500, I think it’s likely to be very short-lived.
Should you invest $1,000 in Vanguard Admiral Funds – Vanguard S&P 500 Growth ETF right now?
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Prediction: This Unstoppable Vanguard ETF Will Keep Beating the S&P 500 Over the Long Term was originally published by The Motley Fool
Finance
PBOC Starts Bank Stress Tests to Avoid Stampede Out of Bonds
(Bloomberg) — China has initiated stress tests with financial institutions on their bond investments, to make sure they can handle any market volatility should a record-breaking rally reverse, according to state-run media.
Most Read from Bloomberg
The People’s Bank of China has made a gradual start to the tests recently, wary that a bull run might lead to one-sided bets in long-term government bonds, according to a front-page report by Financial News. Its intention may not necessarily be to significantly push yields higher, the central bank-backed newspaper said citing an unidentified source.
Financial institutions should be able to cope with large drops in bond prices, as crowded holdings in debt positions could easily turn into a “stampede” in the event of a sharp yield reversal, Financial News said. That can raise the likelihood of a liquidity crisis and threaten financial stability, it added.
A stellar rally in Chinese bonds has stalled amid measures to cool sentiment including having state banks sell some bonds and gathering financial institutions for meetings. That has triggered a collapse in government bond trading as investors consider the regulatory moves.
The central bank did not seek to nor will it seek to ban legitimate investments or trading in its government bonds, but it sees risks in a buying spree of the securities, Bloomberg earlier reported, citing people familiar with the PBOC’s thinking.
By doing the tests, the authorities want to see if banks can handle drastic market swings in hypothetical and extreme conditions with their current holdings of assets, the paper said. In the case of the bond market, officials may want to see how banks can react if yields surge by 10, 20 or even 50 basis points in a sudden move, it added.
Financial risks in key areas are being resolved in an orderly manner, PBOC Governor Pan Gongsheng said in an interview with state broadcaster China Central Television that aired Saturday. China will adhere to a supportive monetary policy stance and promote credit growth and gradual decline funding costs, he added.
(Update with more details in the report)
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