Tech, trees and tailwinds

Investors need to look past tick-box credentials to consider the real ESG impact of their infrastructure projects, says Ian Berry, head of infrastructure equity at Aviva Investors.

Today, a handful of urban centres are pulling away from their rivals – creating more innovation, more growth and more jobs. Those changes have deep implications; understanding them and what they mean for local communities takes joined-up thinking.

In our regular update on drivers in real assets, we assess the impacts of a possible downturn in the euro zone. We touch on cash generation, the valuation outlook and the significance of security and ranking in the capital structure.

The rise of the knowledge economy has energised cities which have reinvented themselves as global knowledge capitals, of which London is a prime example.

With society facing many urgent and complex challenges, deciding who is best-placed to deliver solutions has become an emotive and often political subject. We assess whether there is a better way to utilise the skills and resources of the public, private and third sectors for the greater good.

Hardly a day goes by without at least one negative headline bemoaning the impact of disruption in retail markets on high streets and shopping centres. While this is true in the US and the UK, Chris Urwin examines whether European high streets will face a similar threat.

While the shape of the UK’s future relationship with its European neighbours is still unclear, the question of how to finance infrastructure fit for the 21st century is equally pressing, argues Darryl Murphy.

Assessing ESG risks within real asset investments is far from straightforward. Mark Versey and Stanley Kwong use five case studies to illustrate the balance of ESG risk factors that affects investment decision-making, beyond simply trying to be ‘green’.

Jonathan Bayfield and Vivienne Bolla discuss the outlook for UK and European real estate.

The role of a city is vastly different to fifty years ago. We explain why talent, clusters and scale are key factors in determining which cities – and therefore European office markets – will thrive in the years ahead.

Physical assets, particularly infrastructure and real estate, have a critical role to play in facilitating the transition towards a more sustainable economy and a greener world. As ultimate asset owners, investors are deeply engaged in the issues, and incorporating environmental, social and governance (ESG) considerations is a fundamental part of an asset manager’s duty to their clients.

In this piece Jonathan Bayfield outlines why we are positive on the outlook for London retail and how we can identify the London sub-markets with the best medium-term investment prospects.