Multi-asset investing at Aviva Investors

As part of our engagement efforts, every January we send a letter to the chairs of companies we invest in (and some we don’t, but still want to use our influence with) to set out our stewardship priorities for the year. Here, in full, is our 2021 letter.

Sunil Krishnan highlights some of the themes that will shape multi-asset investing in 2021.

Liam Spillane, head of emerging market debt at Aviva Investors, picks three themes that could have a big say in how the asset class performs in 2021.

We select some of our key pieces of content in a year of unending drama.

The Goldilocks environment is back, but bears are lurking in the shadows. Francois de Bruin explores the risks and opportunities that need to be managed to get outcomes that are “just right”.

After a strong summer, conditions are changing in asset markets. Sunil Krishnan assesses the risks and opportunities for investors.

With US real interest rates sinking ever more deeply into negative territory as the Fed signals it is on hold for a prolonged period, the outlook for the dollar is bearish for the first time in a decade, argues Mark Robertson.

Much like a gem is forged under pressure, the ESG movement is powerful because it results from tension at multiple levels: between art and science, absolute and relative, exclusion and engagement. Francois de Bruin explores the lines of tension underpinning the investment approach to sustainability.

Bottom-up thinking is not a typical hallmark of multi-asset investing. However, Francois de Bruin believes the granularity that comes from this approach offers useful diversification and risk benefits.

With the notable exception of China, countries around the world have struggled to get their economies firing on all cylinders without COVID-19 infections flaring up again. Until a way to contain the virus is found, recoveries are likely to remain stop-start and fragile, argue Ian Pizer, Mark Robertson and Sunil Krishnan.

As the world grapples with COVID-19, antibiotics used to treat serious secondary bacterial infections associated with the coronavirus are making their way into wastewater with potentially dire consequences. Abigail Herron questions whether investors appreciate the seriousness of what antimicrobial resistance could lead to.

Investors have faced several surprises during Q2 earnings season. Sunil Krishnan discusses what the current results round means for multi-asset investors over the coming months.

In part two of our interview with Professor Andrew Scott from London Business School, we look at how policy will shift to take account of people living for longer and how service providers will respond.

Living longer brings enormous opportunities to reshape how we spend our time. But in the first of a two-part interview, Andrew Scott from London Business School explains how advances in longevity and technology have not been matched by innovation in social structures or our approach to financial planning.

The COVID-19 pandemic has brought many things into focus, reminding investors of the shock of a market crash. With bond and equity prices already back at levels that seem to belie the harsh economic reality, Peter Fitzgerald and Mark Robertson believe it could be time to reconsider absolute return multi-strategy investing once more.

COVID-19 has caused significant volatility in financial markets, creating headaches for defined contribution pension schemes seeking to deliver robust outcomes. Overcoming this requires a full map of risks along the savings and retirement journey, argues Francois de Bruin.