Recent thinking
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What’s next for nature? Key takeaways from Biodiversity COP16
11 Dec 2024
Following our participation at COP16, the 16th meeting of the Conference of the Parties to the UN Convention on Biological Diversity, we reflect on the key themes that emerged, outstanding challenges, and what this all means for investors.
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Buy-and-maintain credit: Taking the road to net zero
10 Dec 2024
Long-term trends like climate change are particularly important for buy-and-maintain investors. How can they integrate climate objectives, such as net zero by 2050, into their portfolios?
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Bond Voyage: A journey into fixed income
9 Dec 2024
This month, we explore how US Treasuries are taking a breath, why 2025 could be the year of carry for high yield, what increasing dispersion means for emerging markets, and how surging M&A activity could affect investment-grade bonds.
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Spend and save: Three key trends shaping the consumer sector
4 Dec 2024
Our new series shares insights from our sector hub discussions to delve into the trends shaping global equity markets. In the first instalment, Harsharan Mann, consumer sector hub lead, explains what investors should look out for in the sector.
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Beyond bonds: Finding diversification in an era of higher rates volatility
27 Nov 2024
Bond markets are jumpy once again following recent political developments. Rising deficits and renewed inflation risk mean bond market volatility, and with it the search for alternative sources of portfolio diversification, looks to be here to stay.
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Decarbonising transport: Five key challenges and how to overcome them
26 Nov 2024
Creating sustainable transport solutions is vital to meet net-zero pledges, but progress has been patchy. To encourage mobilisation across value chains, we brought together a range of sector experts to identify key blockers and potential solutions.
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Building bridges to net zero: Mobilising value chains for decarbonisation
25 Nov 2024
From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.
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From tactical to strategic: Investing in emerging-market hard currency debt in your fixed income portfolio
18 Nov 2024
Investors should consider EMD hard currency for a long-term strategic allocation within fixed income portfolios to boost portfolio returns, rather than just a short-term tactical play.
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US election 2024: Some initial thoughts from our fund managers
6 Nov 2024
Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.
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Bond Voyage: A journey into fixed income
4 Nov 2024
This month, our fixed-income investment teams discuss US elections, IMF meetings, US versus European high yield, managing declining rates for cash, and what the future might hold in store for gilts.
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Illiquidity premia in private debt: Q3 2024
30 Oct 2024
In our latest private markets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.
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When risks collide: The case for diversifying via liquid alternatives
23 Oct 2024
A growing number of investors are turning to alternatives to boost portfolio diversification, with the events of 2022 still fresh in their mind. In this article we look at why increased uncertainty over the future path of the stock-bond correlation, means this trend may persist.
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A tale of two cities: Factoring liquidity into risk-based capital
22 Oct 2024
Hong Kong’s new risk-based capital framework is reshaping the insurance landscape, pushing insurers to rethink their balance sheet strategies and liquidity management. In this article, Alastair Sewell discusses the evolving asset allocation trends and the opportunities insurers face to enhance capital efficiency and long-term growth.
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Striking a balance: Key themes from the first eight months of 2024 AGMs
21 Oct 2024
Annual general meetings (AGMs) are an opportunity for responsible investors to share their priorities with companies and express their views on key elements of strategy and governance. Our Stewardship team reviews our 2024 AGM engagement and voting activity.
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Resisting the lure of beta: A differentiated approach to portfolio construction in investment grade
18 Oct 2024
Global head of investment-grade credit James Vokins explains how a differentiated approach to portfolio construction can help credit investors avoid the pitfalls of being reliant on beta.
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Navigating nature: Opportunities for the investor of tomorrow
16 Oct 2024
Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.
Macro House View
No one can predict the future. But our quarterly House View sets out the collective wisdom of our investment teams on the current state of global markets – and where they might be heading.
The Little Book of Data
Good data visualisation makes us see the world anew. The sixth edition of The Little Book of Data presents original and curated visuals, charts and graphics to offer a fresh perspective on topics shaping our world.
Equities
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What’s next for nature? Key takeaways from Biodiversity COP16
Following our participation at COP16, the 16th meeting of the Conference of the Parties to the UN Convention on Biological Diversity, we reflect on the key themes that emerged, outstanding challenges, and what this all means for investors.
-
Spend and save: Three key trends shaping the consumer sector
Our new series shares insights from our sector hub discussions to delve into the trends shaping global equity markets. In the first instalment, Harsharan Mann, consumer sector hub lead, explains what investors should look out for in the sector.
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US election 2024: Some initial thoughts from our fund managers
Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.
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Multi-asset allocation views: Where next for markets after the summer storms?
Volatility returned to markets in the third quarter of the year. While the short-term drivers are not unduly worrying, Sunil Krishnan argues multi-asset investors will need to be watchful over the medium term.
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Equity income megatrends: Four themes reshaping the landscape for income investors
In this article, we look at four megatrends that are likely to transform companies and markets over the coming years, and how they might create opportunities for equity investors.
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Casting a wider net: Equity income investors find opportunities in global tech and industrials
Large tech firms such as Meta have announced they will pay dividends for the first time in 2024, illustrating the opportunities equity income investors can find beyond “traditional” dividend-paying stocks.
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The ‘In’ crowd: Why companies with ‘club’ dynamics can represent opportunities
We explore how creating “clubs” can bolster network effects, enhance firms’ resilience and make them attractive to investors.
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Tech’s tightening grip: What rising US stock concentration means for equity investors
Soaring technology share prices have driven US stock market concentration to unprecedented levels and pushed the US market to a record premium relative to other markets. While both trends could persist, investors need to be aware of the implications, argues Joao Toniato.
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The war on bugs: Climate change contributes to growth in the pest-control industry
Pest control has become a growing priority for city residents and authorities all year round, as rising temperatures and other factors boost the populations of many pest species. But in creating adaptation solutions, the sector could also represent a long-term investment opportunity.
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Measure for measure: Why the business of benchmarks matters to investors
Investors rely on benchmarks for data – but benchmarks can also represent investment opportunities in themselves. So how can we identify companies whose benchmarks are likely to have staying power?
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From cash rich to cash strapped? Why the US consumer boom could run out of road
Our investment teams explain why buoyant US consumer spending will have to weaken eventually. That could pose problems for debt-laden consumer-facing companies.
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Softly does it? A Q&A with Peter Fitzgerald and Ian Pizer
The managers of the AIMS Target Return strategy explain why the prospects for a range of asset classes suddenly look much brighter.
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China versus the West:The ongoing rise of economic nationalism
The US and China continue to trade blows as each side looks to limit the other’s access to vital products. With industrial policies also making a comeback, companies are having to navigate a rapidly changing business environment. We look at the key implications for investors.
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Multi-asset allocation views: Cutting through the noise
Issues around US tech, China, US Treasuries and Japanese monetary policy have hit the headlines in recent weeks. Sunil Krishnan explains how taking a long-term view can help multi-asset investors cut through the noise.
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Tipping points and transformation: Getting on the right side of change
Rapid changes in the global economy could tip some sectors into low-carbon phases faster than incumbents expect, with important investment implications.
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Defensive sectors offer value amid AI frenzy: What next for global equity income investors?
Dividends proved resilient in the first half of 2023. Richard Saldanha considers what the rest of the year might have in store for income investors.
Fixed income
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Buy-and-maintain credit: Taking the road to net zero
Long-term trends like climate change are particularly important for buy-and-maintain investors. How can they integrate climate objectives, such as net zero by 2050, into their portfolios?
-
Bond Voyage: A journey into fixed income
This month, we explore how US Treasuries are taking a breath, why 2025 could be the year of carry for high yield, what increasing dispersion means for emerging markets, and how surging M&A activity could affect investment-grade bonds.
-
From tactical to strategic: Investing in emerging-market hard currency debt in your fixed income portfolio
Investors should consider EMD hard currency for a long-term strategic allocation within fixed income portfolios to boost portfolio returns, rather than just a short-term tactical play.
-
Bond Voyage: A journey into fixed income
This month, our fixed-income investment teams discuss US elections, IMF meetings, US versus European high yield, managing declining rates for cash, and what the future might hold in store for gilts.
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Resisting the lure of beta: A differentiated approach to portfolio construction in investment grade
Global head of investment-grade credit James Vokins explains how a differentiated approach to portfolio construction can help credit investors avoid the pitfalls of being reliant on beta.
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Power play: Why political risk matters for emerging-market debt investors
In this article, we explore why measuring and continually monitoring geopolitical risks is essential for investors in EM debt.
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Bond Voyage: A journey into fixed income
In our October edition of Bond Voyage, our fixed-income teams reflect on US elections, US rates, France’s slide towards the periphery of EU issuers, and ESG considerations in Asia.
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Multi-asset allocation views: Where next for markets after the summer storms?
Volatility returned to markets in the third quarter of the year. While the short-term drivers are not unduly worrying, Sunil Krishnan argues multi-asset investors will need to be watchful over the medium term.
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Bond Voyage: A journey into fixed income
This month, we discuss the books that inspired our investment teams over the summer.
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Standing tall: Three factors behind the resilience of emerging-market debt
In this article, we explore what’s behind emerging markets’ impressive performance in the face of global economic volatility, and investigate how EM debt investors can take advantage.
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An ABS renaissance? Why it may be time for insurers to reconsider asset-backed securities
Securitisation performs a vital role in capital markets and asset-backed securities have historically been a core holding for insurance companies. This article revisits the investment thesis for ABS and explores why the stage may be set for something of a renaissance.
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Bond Voyage: A journey into fixed income
In this summer edition of Bond Voyage, we discuss topical themes in liquidity, emerging-market debt, investment-grade credit and global sovereign bonds.
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Time to get active: Finding opportunities in emerging-market debt
Emerging markets have remained robust amid the economic and political uncertainties of 2024, but active management will be important if debt investors are to identify standout performers over the coming months.
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Riding the technical tailwinds: The outlook for investment-grade credit
Credit markets have had a comparatively easy ride so far in 2024, and investment-grade corporate spreads are now at some of their tightest levels for a long time. But investors must guard against complacency.
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Liquidity optimisation for insurers: Building a bespoke portfolio solution
In the third part of our liquidity optimisation series, we look at how bespoke liquidity portfolios that take into account the interplay between different assets can suit the needs of insurers.
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Finding the right blend: Optimising asset allocation in liquidity pools
In the second part of our new article series on liquidity optimisation, Alastair Sewell investigates how investors can find the right mix of assets for their liquidity pools.
Liquidity
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US election 2024: Some initial thoughts from our fund managers
Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.
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Bond Voyage: A journey into fixed income
This month, our fixed-income investment teams discuss US elections, IMF meetings, US versus European high yield, managing declining rates for cash, and what the future might hold in store for gilts.
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An ABS renaissance? Why it may be time for insurers to reconsider asset-backed securities
Securitisation performs a vital role in capital markets and asset-backed securities have historically been a core holding for insurance companies. This article revisits the investment thesis for ABS and explores why the stage may be set for something of a renaissance.
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Liquidity optimisation for insurers: Building a bespoke portfolio solution
In the third part of our liquidity optimisation series, we look at how bespoke liquidity portfolios that take into account the interplay between different assets can suit the needs of insurers.
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Finding the right blend: Optimising asset allocation in liquidity pools
In the second part of our new article series on liquidity optimisation, Alastair Sewell investigates how investors can find the right mix of assets for their liquidity pools.
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A bigger splash: How much liquidity do I need?
The importance of holding liquidity is well understood by large institutions. But how much is enough? In the first part of our new article series on liquidity optimisation, Alastair Sewell investigates the key considerations for different investor types.
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Testing the water: The regulatory outlook for liquidity funds
The Financial Conduct Authority has proposed material changes to money market funds. We look into the implications for investors.
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Rates, regulation and the dash for cash: The outlook for liquidity investors in 2024
Alastair Sewell answers the seven key questions on the minds of liquidity investors heading into 2024.
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Three, two, one…Cash returns set for lift-off
With interest rates set to remain higher for longer and inflation gradually falling, money market funds can offer investors a way to access positive real yields on cash, says Alastair Sewell.
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Better late than never: European Commission constructive on money market funds
After the European Commission released its long-awaited assessment report on European money market fund regulation, Alastair Sewell discusses the main implications for investors.
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Cash is king (again): Higher rates spurring interest in money market funds
Members of Aviva Investors’ liquidity team explain why rising global interest rates and problems in the US banking sector are fuelling demand for money market funds.
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Opportunities in cash: Our 2023 liquidity outlook
Our liquidity team give their take on what the challenging market environment means for positioning in 2023.
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Time to rethink collateral cash
In this Q&A, Alastair Sewell explains why investors need to urgently rethink their approaches to collateral cash management.
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Nothing happened, twice: Addressing the key questions on recent volatility for sterling money market fund investors
After the volatility that rocked UK markets in recent weeks, Alastair Sewell reflects on how this impacted money market funds and what’s next.
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European money market fund reform: Preparing for change
European regulators are set to introduce significant reforms to money market funds. Investors need to be ready, says Alastair Sewell.
Private markets
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What’s next for nature? Key takeaways from Biodiversity COP16
Following our participation at COP16, the 16th meeting of the Conference of the Parties to the UN Convention on Biological Diversity, we reflect on the key themes that emerged, outstanding challenges, and what this all means for investors.
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Illiquidity premia in private debt: Q3 2024
In our latest private markets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.
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Seizing the moment: The outlook for real estate debt
Gregor Bamert, Sima Kotecha and Nick Solomon discuss the recovery in real estate debt markets in 2024 and the opportunities emerging.
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Get networking: Will the next decade be a golden age for UK infrastructure?
While there are obstacles to overcome, the coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, says Darryl Murphy.
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Real asset stories: Curtain House
In the first instalment of a new series of case studies on our real asset investments, we look at Curtain House, a Victorian warehouse Aviva Investors is converting into a modern, environmentally friendly office building.
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Illiquidity premia in private debt: Q2 2024
In our latest real assets deep dive, our research team explains how our data on illiquidity premia indicates the benefits of a multi-asset approach to private debt investing.
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Relative value in real assets: A spectrum of opportunities
Our real assets research team drills into proprietary data to compare risk and return across sectors.
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A new chapter: Time to prepare for the next phase of the real estate cycle
David Hedalen and Jonathan Bayfield from our real assets research team highlight data that shows real estate markets in the UK and Europe may be on the brink of an important shift.
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The future of green premia in real estate, part two: Searching for value and resilience
Do energy-efficient buildings have more pricing power, and what could that mean for those investing in the built environment? We bring together the views of leading capital markets researchers, a valuer and an asset manager for the second part of our deep dive into green premia, analysing the investment implications.
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Avoid, reduce, remove, align: Finding climate transition investment opportunities in real assets
In this article, Luke Layfield and Zoe Austin explain four key pillars that can help real asset investors align their strategies with the climate transition and uncover opportunities to deliver attractive returns.
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The future of green premia in real estate, part one: The view from the ground
Do greener buildings have more pricing power, and if so, how much? We bring together the views of leading capital markets researchers, a valuer and an asset manager for a two-part deep dive on the latest market dynamics.
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Cyclical, structural, vintage: The outlook for real estate equity
High inflation and rising rates hit activity in real estate markets over the past year. But cautious optimism is now returning to the investment landscape in the UK and Europe, say Imogen Ebbs and George Fraser-Harding.
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Building better: Opportunities for DC schemes to invest in the climate transition through real assets
By investing in climate-aligned real assets, defined-contribution pension schemes can help propel the transition while also benefiting from portfolio diversification and attractive risk-adjusted returns, says Mark Meiklejon.
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Resilience and recovery: The outlook for real estate long income
Renos Booth, Isabel Gossling and Kris McPhail from our real estate long income team consider the outlook for long-lease assets after a challenging period for investors.
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Rents, rates and the refinancing gap: The outlook for real estate debt
After a challenging 12 months for real estate debt investors, Gregor Bamert discusses what lies ahead for the market in 2024.
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Illiquidity premia in private debt: Q4 2023
In our latest real assets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.
Economic research
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Decarbonising transport: Five key challenges and how to overcome them
Creating sustainable transport solutions is vital to meet net-zero pledges, but progress has been patchy. To encourage mobilisation across value chains, we brought together a range of sector experts to identify key blockers and potential solutions.
-
Building bridges to net zero: Mobilising value chains for decarbonisation
From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.
-
US election 2024: Some initial thoughts from our fund managers
Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.
-
Striking a balance: Key themes from the first eight months of 2024 AGMs
Annual general meetings (AGMs) are an opportunity for responsible investors to share their priorities with companies and express their views on key elements of strategy and governance. Our Stewardship team reviews our 2024 AGM engagement and voting activity.
-
Navigating nature: Opportunities for the investor of tomorrow
Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.
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Only connect: How a holistic approach to investment stewardship can enhance client outcomes
From direct investments and engagement with companies to dialogue with governments and regulators, we believe stewardship efforts can deliver better outcomes for clients.
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Survival of the fittest: Resilience, persistence and AIMS Target Return
Aviva Investors’ Multi-Strategy Target Return managers talk about why their strategy has survived where others have failed, the lessons they have learned and why enhancements to their investment process in 2018 have been paying dividends.
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Boosting low-carbon investment in the UK: A Policy Roadmap
Our in-depth Roadmap for the UK’s journey towards a low-carbon economy contains policy recommendations to unlock private investment in the transition.
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Blueprints for a greener economy: Creating a transition planning ecosystem
National transition plans can give investors support, confidence and direction to accelerate the flow of finance to bring about a low-carbon economy. As such, they should be seen as a strategic opportunity.
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Nothing to fear: Sustainable investing trade-offs
Sustainable investing, and the supposed trade-offs involved, have been a topic of heated debate. But trade-offs are a fundamental part of all types of investment; the key is to be clear about your objectives, as Mirza Baig explains.
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The tipping point for climate finance: Making financial flows consistent with the Paris Agreement
Transition plans, including from governments in response to the Global Stocktake, will be crucial to bring about the shift to a low-emissions, climate-resilient world. Markets need clear implementation signals to align capital with the goals of the Paris Agreement. Our in-depth report calls for the creation of a transition-plan ecosystem connecting all levels of the global economy.
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China versus the West:The ongoing rise of economic nationalism
The US and China continue to trade blows as each side looks to limit the other’s access to vital products. With industrial policies also making a comeback, companies are having to navigate a rapidly changing business environment. We look at the key implications for investors.
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Disability inclusion in the workplace: Taking down the barriers
Disabled employees continue to face a variety of hurdles to cope with in addition to their day job. We look at how employers can help remove those barriers to allow everyone to thrive.
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Accelerating climate solutions: The Edinburgh Earth Initiative in profile
In the 17th and 18th centuries, academics at the University of Edinburgh helped drive the Industrial Revolution. Today, they are connecting with businesses to tackle the climate emergency. Words by Miles Costello.
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Buy it or build it: Why innovation is key in healthcare
Healthcare is a dynamic industry, but patent expiries from 2025 and drug-price reform in the US pose challenges. Innovation will be key for continued success, as experts from our credit, equity and ESG teams explain.
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Getting a taste for fiscal intervention, but at what cost?
Fiscal intervention is, again, a vital part of the government policy toolkit, supporting plans to boost domestic industries and fight climate change. But while well-intended, such measures will add to already elevated debt levels, with significant implications for investors, as Michael Grady explains.
Responsible investment
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What’s next for nature? Key takeaways from Biodiversity COP16
Following our participation at COP16, the 16th meeting of the Conference of the Parties to the UN Convention on Biological Diversity, we reflect on the key themes that emerged, outstanding challenges, and what this all means for investors.
-
Buy-and-maintain credit: Taking the road to net zero
Long-term trends like climate change are particularly important for buy-and-maintain investors. How can they integrate climate objectives, such as net zero by 2050, into their portfolios?
-
Decarbonising transport: Five key challenges and how to overcome them
Creating sustainable transport solutions is vital to meet net-zero pledges, but progress has been patchy. To encourage mobilisation across value chains, we brought together a range of sector experts to identify key blockers and potential solutions.
-
Building bridges to net zero: Mobilising value chains for decarbonisation
From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.
-
Striking a balance: Key themes from the first eight months of 2024 AGMs
Annual general meetings (AGMs) are an opportunity for responsible investors to share their priorities with companies and express their views on key elements of strategy and governance. Our Stewardship team reviews our 2024 AGM engagement and voting activity.
-
Navigating nature: Opportunities for the investor of tomorrow
Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.
-
Only connect: How a holistic approach to investment stewardship can enhance client outcomes
From direct investments and engagement with companies to dialogue with governments and regulators, we believe stewardship efforts can deliver better outcomes for clients.
-
Get networking: Will the next decade be a golden age for UK infrastructure?
While there are obstacles to overcome, the coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, says Darryl Murphy.
-
Real asset stories: Curtain House
In the first instalment of a new series of case studies on our real asset investments, we look at Curtain House, a Victorian warehouse Aviva Investors is converting into a modern, environmentally friendly office building.
-
Boosting low-carbon investment in the UK: A Policy Roadmap
Our in-depth Roadmap for the UK’s journey towards a low-carbon economy contains policy recommendations to unlock private investment in the transition.
-
The future of green premia in real estate, part two: Searching for value and resilience
Do energy-efficient buildings have more pricing power, and what could that mean for those investing in the built environment? We bring together the views of leading capital markets researchers, a valuer and an asset manager for the second part of our deep dive into green premia, analysing the investment implications.
-
Avoid, reduce, remove, align: Finding climate transition investment opportunities in real assets
In this article, Luke Layfield and Zoe Austin explain four key pillars that can help real asset investors align their strategies with the climate transition and uncover opportunities to deliver attractive returns.
-
The future of green premia in real estate, part one: The view from the ground
Do greener buildings have more pricing power, and if so, how much? We bring together the views of leading capital markets researchers, a valuer and an asset manager for a two-part deep dive on the latest market dynamics.
-
Blueprints for a greener economy: Creating a transition planning ecosystem
National transition plans can give investors support, confidence and direction to accelerate the flow of finance to bring about a low-carbon economy. As such, they should be seen as a strategic opportunity.
-
Nothing to fear: Sustainable investing trade-offs
Sustainable investing, and the supposed trade-offs involved, have been a topic of heated debate. But trade-offs are a fundamental part of all types of investment; the key is to be clear about your objectives, as Mirza Baig explains.
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See the wood, not just the trees: How climate-focused credit investors can help drive real-world change
Green bond funds and Paris-aligned benchmarks are aimed at climate-focused credit investors who also want the simplicity of passive investing. But while they decarbonise portfolios, they exclude the companies in the real economy that need to transition if the world is to meet the Paris Agreement goals. This is why an active approach can be beneficial.
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