Capabilities

Climate change and nature degradation are widely recognised as a source of potentially material financial risks, which will increase in the long term. Tackling them requires international cooperation, such as at the Conferences of Parties (COPs) and effective domestic implementation.

France remained the focal point for investors this week, as concerns over the country’s finances reinforced a broader global focus on rising bond yields. However, US equities continued to shrug off the impact of rising yields with the S&P 500 and Nasdaq hitting record highs.

Electric and self-driving cars, batteries and robotics are progressing in leaps and bounds. Our experts discuss the investment implications.

Securitisation offers insurers diversification, varied collateral pools and attractive spreads, yet remains underrepresented as allocations depend on more than returns and capital charges.

With government deficits under the spotlight, fixed income investors need to think globally and take an active approach to allocations.

In the second of four articles, we explain how environmental importance does not automatically translate into investment readiness. Investor confidence in future revenues depends on market evidence, contractual certainty and a track record of delivery.

In our latest case study, we look at Glen Dye Moor, a 6,300-hectare site in Aberdeenshire, Scotland. We intend to rejuvenate the land, simultaneously removing carbon from the atmosphere, and delivering financial outcomes for investors and social benefits for local communities.

Global bond markets remain under pressure due to renewed inflation concerns and a general shift to tighter monetary policy.

Sustainability-related regulation is becoming an increasingly material driver of real estate investment decision-making, rather than just a compliance requirement. Jeremy Ho analyses the implications.

Private credit should no longer be treated as a separate asset class beyond public investors’ field of view – it is part of the same ecosystem, influencing price discovery, transfer of risk and recovery outcomes.

Amid challenging global market conditions, insurers in Asia are also adapting to rapidly changing regulatory standards, but opportunities remain to further optimise their portfolios.    

Investors in passive bond funds are being exposed to more risk than they may appreciate as US technology giants turn to fixed income markets to fund massive spending on AI data centres, argues Aviva Investors chief executive Mark Versey. 

Regulation must recognise that sustainable investing incorporates more than the provision of sustainable funds alone.

Diversification has always been at the heart of asset management, but recent turmoil, from higher inflation to conflict, trade barriers and the AI revolution, is roiling markets. Can investors still reap its benefits?

In the first of four insights, we explain why natural capital is a foundational input into economic activity. Forests, soils, rivers, wetlands, oceans and biodiversity are productive assets that generate products such as timber or food and are natural regulators of water flows. 

In this latest edition of our series on the illiquidity premia, we assess the key themes driving private-debt pricing and market opportunities in Q2.