Stranded!

When assets become liabilities

Equities

Health first: Finding resilience in pharmaceuticals

2 Jul 2020

COVID-19 has led to a new appreciation of the importance of healthcare in ensuring all members of society thrive. So where should investors be looking to find resilience in an industry facing enormous change?

Equities

Why COVID-19 is unlikely to trigger a fresh financial crisis

1 Jul 2020

In the latest instalment of our editorial series, Link, Oliver Judd and Jaime Ramos Martin explain why banks are well-placed to withstand the economic fallout from COVID-19.

Real Assets

Tomorrow’s world: COVID-19 and the long-term future of commercial real estate

29 Jun 2020

Chris Urwin and Jonathan Bayfield look beyond the near-term disruption to real estate to assess the longer-term prospects for the retail, office and logistics sectors.

Covid-19

Multi-asset allocation views: How long will the COVID-19 damage last?

26 Jun 2020

Nearly three months after COVID-19 caused markets to crash and sent countries across the globe into lockdown, debates continue over what the post-COVID world will look like and the extent of the long-term damage. Sunil Krishnan remains cautious.

Equities

What do rising US-China tensions mean for global markets?

24 Jun 2020

In the latest instalment of our editorial series, Link, Aviva Investors experts discuss the prospects for financial markets and the world economy in the face of escalating hostilities between the US and China.

Equities

Defined Benefit pensions de-risking: A covenant and investment view

23 Jun 2020

In the midst of the COVID-19 shock, Felix Mantz from Lincoln Pensions and Joachim Sudre from Aviva Investors explore how defined benefit pension schemes should plan their journey towards an end game and adopt a more holistic approach to risk.

Real Assets

Logistics: ‘Last mile’ or further to run?

19 Jun 2020

Following a decade of bumper demand and returns, many experts are questioning whether logistics real estate assets have reached their prime or whether they still have further to run. Vivienne Bolla argues the latter.

Covid-19

COVID-19 and data infrastructure: Will demand translate into profit?

18 Jun 2020

During the initial outbreak of COVID-19, we published a report on the underlying long-term trends supporting data infrastructure. Since then, much about the world as we knew it has changed. Laurence Monnier assesses how many of the trends we identified remain intact and whether the surge in demand for data services and infrastructure will translate into investment opportunities.

Covid-19

COVID-19, comp and doing the right thing: Why corporate values have never been more critical

16 Jun 2020

With annual general meetings now taking place virtually, shareholders, employees and suppliers have had to adjust to lockdowns. While some of the immediate impacts will be phased out with the opening of the economy, stewardship priorities and corporate values may change forever.

Covid-19

Evidence and ambition: The new rules of engagement on climate change

15 Jun 2020

Mirza Baig explains why far-off commitments on climate change by energy companies and their lenders are no longer enough, and why COVID-19 has catalysed rather than derailed investor engagement on the issue.

AIQ Feature

Have traditional safe havens lost their edge?

9 Jun 2020

COVID-19 has reminded investors of the importance of defensive positions within portfolios during times of stress. But are the ‘safe havens’ of the past still up to the task?

AIQ Feature

What makes a company resilient in a crisis?

9 Jun 2020

As the COVID-19 pandemic hits global economies, equity investors are redoubling their focus on corporate resilience. But what does resilience mean in the current context – and which companies have it?

AIQ Feature

Where to go in an income drought?

9 Jun 2020

Income investors face multiple challenges – dividend cuts, historically low yields, rising corporate defaults, and an uncertain property market. Francois de Bruin goes in search of sustainable income sources.

Equities

Cinderella science? Why portfolio construction holds the key to resilient investment outcomes

9 Jun 2020

It is one thing to have a good investment idea, but quite another to extract the maximum potential from that idea and combine it with others to create an optimal portfolio. This is where portfolio construction comes in.

Equities

Global equities Q&A: Will COVID-19 reshape the structure of global business?

2 Jun 2020

Mikhail Zverev explores the impact of the coronavirus pandemic on global industries and the longer-term implications for supply chains.

Emerging Market Debt

EMD: The art of differentiation

29 May 2020

Liam Spillane and Aaron Grehan explain why there are still opportunities for investors in emerging market debt, despite expectations of higher defaults and lower recovery rates.

Have traditional safe havens lost their edge?

9 Jun 2020

COVID-19 has reminded investors of the importance of defensive positions within portfolios during times of stress. But are the ‘safe havens’ of the past still up to the task?

What makes a company resilient in a crisis?

9 Jun 2020

Where to go in an income drought?

9 Jun 2020

Cinderella science? Why portfolio construction holds the key to resilient investment outcomes

9 Jun 2020

The AIQ Podcast: The psychology of climate change

4 Mar 2020

This latest episode of the AIQ Podcast explores the psychology of climate change and how to engage individuals in the quest for solutions.

Climate change: The journey from denial to crisis

28 Feb 2020

More than 40 years since a senior NASA scientist told US Congress of concerns about human activities disrupting the climate, experts are warning of an impending climate catastrophe and the financial sector is wrestling with the implications.

Why asset managers cannot be passive on climate change

28 Feb 2020

As active investors step up their engagement efforts on the climate crisis, discussions need to be at the CEO rather than board level, argues David Cumming.

Apathy, anger, action: The psychology of climate change

28 Feb 2020

Psychological barriers can prevent people from acting to avert the climate threat, even when they recognise the problem. So how can we best engage individuals, companies and communities in the quest for solutions?

Stranded! When assets become liabilities

28 Feb 2020

Until recently, many investors made light of dire warnings of the risks posed by assets becoming “stranded” by climate change. However, as the threat becomes reality, fears are mounting that whole industries could be wiped out.

‘Sticking’ it to carbon: The pros and cons of taxing emissions

28 Feb 2020

With governments urged to do more to tackle climate change, carbon taxes are being touted as a politically expedient solution.

Slash and burn: The link between land use and climate change

28 Feb 2020

Poor land management contributes to rising global temperatures. But solutions are emerging as new technologies improve farming efficiency and consumers shift towards climate-friendly diets.

Hot water: The threat of warming oceans

28 Feb 2020

As the challenges posed by climate change continue to loom large, due attention should be given to oceans, not just the solid ground under our feet and the air we breathe.

An inconvenient transition

28 Feb 2020

Despite deafening calls for countries and companies to step up to fight the climate crisis, research suggests individuals – especially in the developed world – could also make a massive difference if they committed to getting by with less. But will they?

Climate data: Seeing through the fog

28 Feb 2020

Big data is heralded as the answer to almost every problem, so why not the climate crisis?

Nuclear: From pariah to saviour?

28 Feb 2020

As the old saying goes, desperate times call for desperate measures. Despite lingering public anxiety around safety, there are growing calls for the world to look again at nuclear power as part of the solution to the climate crisis.

Biological annihilation: The facts behind the threats to biodiversity and ecosystems

28 Feb 2020

Over 100 billion people have walked the planet, making a gigantic stamp on the Earth. Around three quarters of the land and around two-thirds of the marine environment have been significantly altered by humans, impacting the carbon cycle and changing the prospects for many species.

View all AIQ features

Equities

Health first: Finding resilience in pharmaceuticals

2 Jul 2020

Why COVID-19 is unlikely to trigger a fresh financial crisis

1 Jul 2020

In the latest instalment of our editorial series, Link, Oliver Judd and Jaime Ramos Martin explain why banks are well-placed to withstand the economic fallout from COVID-19.

What do rising US-China tensions mean for global markets?

24 Jun 2020

Defined Benefit pensions de-risking: A covenant and investment view

23 Jun 2020

What makes a company resilient in a crisis?

9 Jun 2020

Cinderella science? Why portfolio construction holds the key to resilient investment outcomes

9 Jun 2020

Equities and COVID-19: Now is not the time to double-down on uncertainty

21 May 2020

As the effects of COVID-19 continue to rip through societies and economies, Trevor Green explains why adding uncertainty on top of uncertainty is never a good investment strategy. He outlines three critical, but simple, rules for navigating the current equity market.

COVID-19: The impact on global equities

28 Apr 2020

As the coronavirus pandemic wreaks havoc on global economies, Giles Parkinson assesses the impact across equity markets and the longer-term implications for investors.

Size matters: Will COVID-19 lead to a concentration of corporate power?

22 Apr 2020

The fallout from the coronavirus pandemic could see large firms cement their dominance over weaker rivals. We examine the implications for investors.

Are investors too complacent about the coronavirus?

21 Feb 2020

In the latest of our editorial series, Link, AIQ brings members of Aviva Investors’ investment strategy, equity and debt teams together to discuss the prospects for financial markets and the world economy in the face of the coronavirus epidemic.

Cwtch: Has capitalism gone cuddly?

18 Feb 2020

In the first of a new editorial series, Link, AIQ brings together people from across Aviva Investors to debate topical themes. Mirza Baig and Stephanie Niven consider whether CEO claims about running businesses for multiple stakeholders rather than shareholders alone is a grand idea or just plain grandstanding.

Dealing with climate change: A mixture of mitigation and adaptation

4 Dec 2019

The asset management industry has a key role to play in the face of the climate emergency facing humanity. We spoke to Emma Haziza, hydrologist, PhD Mines ParisTech, Founder and President of Mayane, and Rick Stathers, Climate Specialist at Aviva Investors to find out how asset managers can support companies in their climate transition efforts.

In a complex market, investors need to connect information signals more effectively

19 Nov 2019

A growing body of research suggests equity investors are poor at recognising the connections and interrelationships between companies. A fresh approach is needed, argues Mikhail Zverev, head of global equities at Aviva Investors.

5G: Anatomy of an equity investment idea

11 Nov 2019

The evolution of wireless technology has fuelled a host of new mobile applications and helped propel companies such as Netflix. 5G, its next iteration, promises speeds up to 20 times faster than the current 4G. But to think only in terms of speed severely underestimates 5G’s potential to fundamentally transform the business landscape – though not without tremendous risk.

Back to the future: Dr Eric Topol on AI in healthcare

3 Oct 2019

In the final article in our series on healthcare, we speak to the renowned cardiologist and author Eric Topol about his new book, Deep Medicine.

Substance over style?

30 Sep 2019

Why an agnostic approach beats equity style biases.

View all equities

Fixed income

Health first: Finding resilience in pharmaceuticals

2 Jul 2020

What do rising US-China tensions mean for global markets?

24 Jun 2020

Defined Benefit pensions de-risking: A covenant and investment view

23 Jun 2020

COVID-19: Will credit markets remain open for business?

1 May 2020

While concerns around credit market liquidity have been rising since the global financial crisis, the COVID-19 sell-off has highlighted how fragile liquidity can be during periods of real stress. Colin Purdie discusses the short- and long-term implications for investment grade and high yield credit globally.

The impact of COVID-19 on global high yield

20 Apr 2020

As an increasing number of companies battle the economic consequences of COVID-19, their ability to service bond payments is coming under intense scrutiny. In this Q&A, Sunita Kara considers whether current high-yield valuations adequately compensate investors for default risk and looks at the broader implications of the pandemic.

Re-enter the dragon: What China’s recovery from COVID-19 means for emerging markets

7 Apr 2020

As China gradually emerges from lockdown, emerging market debt and equity investors are trying to gauge the impact of the coronavirus pandemic on its economy – and the knock-on effects for other emerging markets.

COVID-19 and a brief history of emerging market debt drawdowns

2 Apr 2020

The scale and speed of COVID-19’s impact on global financial markets has caused emerging market debt returns to decline at a pace not seen since the global financial crisis. However, history suggests the recovery of the asset class may also turn out to be quick.

The impact of COVID-19 on private debt

30 Mar 2020

As COVID-19 sweeps across the world, a contraction in global growth is causing an adverse short-term reaction to the economy and financial markets. While the extent of contagion from public markets to private debt remains unclear, transactions with strong downside protection should remain more resilient through the crisis, explains Nikhil Chandra.

Are investors too complacent about the coronavirus?

21 Feb 2020

Broadening global investment-grade horizons

20 Feb 2020

UK investors considering whether to allocate to global investment-grade credit may discover the broader diversification benefits can significantly improve a portfolio’s overall risk dynamics.

Multi-asset allocation views: The pros and cons of higher-yielding fixed income

16 Jan 2020

Sunil Krishnan asks whether higher-yielding fixed income assets remain good diversifiers for multi-asset portfolios in the current environment.

Reform: A route to resilience in emerging markets?

13 Jan 2020

Following a series of IMF meetings in Washington, D.C., Carmen Altenkirch and Dariusz Kedziora discuss their views on how reform prospects may shape emerging market debt.

Climate risk for insurers

12 Dec 2019

Climate risk has become a critical business issue, but a recent consultation by the European Insurance and Occupational Pensions Authority highlights confusion on how to assess it.

Global high yield in a sub-zero world

24 Sep 2019

In the strongest signal yet that central bank policies are upending the investment playbook, sub-zero conditions are extending to the high yield market for the first time. Sunita Kara, looks at the implications for investors.

Three steps to improve the green bond market

11 Sep 2019

Green bonds can be a powerful tool for attracting investment in environmental projects, but reforms are needed to promote further growth of the market, argues Colin Purdie.

Lagarde as ECB chief – independent but integrated?

22 Aug 2019

Christine Lagarde has been nominated to head the European Central Bank at a difficult time for monetary policy given growing fears of a recession in the euro zone. Despite much debate on her credentials, Stewart Robertson argues she is the right candidate for the job.

View all fixed income

Multi-asset & multi-strategy

Multi-asset allocation views: How long will the COVID-19 damage last?

26 Jun 2020

What do rising US-China tensions mean for global markets?

24 Jun 2020

Defined Benefit pensions de-risking: A covenant and investment view

23 Jun 2020

Where to go in an income drought?

9 Jun 2020

Cinderella science? Why portfolio construction holds the key to resilient investment outcomes

9 Jun 2020

COVID-19: This time is different?

3 Apr 2020

While the COVID-19 pandemic may be unlike anything financial markets have experienced before, the past still offers valuable lessons for investors trying to make sense of the crisis, explains Euan Munro.

COVID-19 and a brief history of emerging market debt drawdowns

2 Apr 2020

COVID-19: When it comes to pandemics, investors should listen to the real experts

1 Apr 2020

In early February, with financial markets oblivious to medical experts’ warnings about the dangers posed by the coronavirus, Ian Pizer of Aviva Investors’ investment strategy team began to look into the medical research to learn more about the potential outcomes and the implications for the global economy and markets. What he discovered raises questions about financial market participants’ ability to react to issues they don’t fully understand.

Multi-asset allocation views: Embedding diversification in portfolios

31 Mar 2020

The impact of COVID-19 and policy measures taken by global authorities to contain it have erased the tentative signs of economic strength seen at the start of 2020. As the epidemic has advanced, the market response has been brutal. Sunil Krishnan reflects on how portfolio managers diversify multi-asset portfolios, and the extent to which these measures have been effective in the current round of volatility.

Treasuries: Defence in troubled times

26 Mar 2020

Correlation patterns between assets have not been behaving conventionally over the last month. Most notably, there have been periods when US Treasury yields have been rising (and their value falling) at the same time as equities have been selling off. Why have investors been abandoning safe-haven assets in the midst of the steepest market falls we have seen for 40 years?

RPI may be flawed, but changes shouldn’t cost pensioners and investors

16 Mar 2020

With the start of the consultation for proposed changes to the measurement of inflation in the UK, we look at the likely impact to asset classes, the assets most affected, and the key issues investors should be aware of.

Are investors too complacent about the coronavirus?

21 Feb 2020

Multi-asset allocation views: Uncertainty clouds the outlook for European assets

23 Jan 2020

Sunil Krishnan considers whether Europe can break out of its economic malaise and the factors investors should watch out for in 2020.

Multi-asset allocation views: The pros and cons of higher-yielding fixed income

16 Jan 2020

Sunil Krishnan asks whether higher-yielding fixed income assets remain good diversifiers for multi-asset portfolios in the current environment.

Multi-asset allocation views: Could Japan outperform other equity markets?

14 Jan 2020

Sunil Krishnan argues that low expectations among domestic and global investors are reflected in Japanese equity valuations, creating an opportunity for the asset class to play catch-up with the rest of the world.

Supply chain wars

14 Nov 2019

With the US and China locking horns, we take a deeper look at the tangled and complex web of multinational relationships in the global economic ecosystem.

View all multi-asset & multi-strategy

Real assets

Tomorrow’s world: COVID-19 and the long-term future of commercial real estate

29 Jun 2020

Chris Urwin and Jonathan Bayfield look beyond the near-term disruption to real estate to assess the longer-term prospects for the retail, office and logistics sectors.

What do rising US-China tensions mean for global markets?

24 Jun 2020

Defined Benefit pensions de-risking: A covenant and investment view

23 Jun 2020

Logistics: ‘Last mile’ or further to run?

19 Jun 2020

COVID-19 and data infrastructure: Will demand translate into profit?

18 Jun 2020

Cinderella science? Why portfolio construction holds the key to resilient investment outcomes

9 Jun 2020

COVID 19: The trade-off between staying safe and getting back to work

15 May 2020

An economy in lockdown has significant effects for investors in real assets. In this data illustration, our real assets research team consider the benefit of businesses returning to their usual locations against the risks of doing so.

COVID-19: Do past recessions offer lessons for real estate investors?

7 May 2020

Although history offers no magical answers, it can serve as a useful guide in times of extreme uncertainty. Vivienne Bolla and Souad Cherfouh dig into the archives to better understand the effects of recessions on real estate.

COVID-19 and beyond: Three predictions for transport infrastructure

30 Apr 2020

Constant reminders that COVID-19 ‘does not discriminate’ seem in stark contrast to the social and economic consequences playing out in front of us. Some sectors are clearly being hit harder than others – perhaps none more so than transport. Laurence Monnier looks at the long-term implications for the industry and its supporting infrastructure.

'Mastering the real estate cycle'

17 Apr 2020

The cyclicality of real estate creates opportunities for well-informed investors. However, determining where a market is in the cycle can be difficult, so we have developed a tool that can help investors overcome this challenge.

'Mastering the real estate cycle'

17 Apr 2020

COVID-19 to test the resilience of long income

16 Apr 2020

Real estate long income strategies are known for their defensive qualities. Tim Perry explores how the impact of COVID-19 on the asset class will vary across businesses and sectors.

The impact of COVID-19 on private debt

30 Mar 2020

COVID-19: The impact on European real estate

30 Mar 2020

As the spread of COVID-19 and government response continue to evolve, we analyse recent developments and how they could affect European real estate.

The impact of COVID-19 on UK infrastructure

26 Mar 2020

As well as its profound human impact, COVID-19 is having a marked effect on asset prices and transaction activity in all areas of financial markets. But beyond the short-term uncertainty, UK infrastructure stakeholders are looking for clues as to how the crisis could influence the market’s longer-term prospects.

The implications of COVID-19 for real assets

19 Mar 2020

The human cost of COVID-19 is likely to rise significantly, along with its impact on economies and financial markets as nations enact measures to contain its spread. We summarise recent developments and what they might mean for European real assets markets.

View all real assets

Responsible investment

Health first: Finding resilience in pharmaceuticals

2 Jul 2020

COVID-19, comp and doing the right thing: Why corporate values have never been more critical

16 Jun 2020

Evidence and ambition: The new rules of engagement on climate change

15 Jun 2020

Will COVID-19 prove a watershed for ESG?

14 May 2020

COVID-19 has thrown new light on the interdependencies in human and natural ecosystems, and the vulnerabilities of a closely networked world. Aviva Investors’ responsible investment specialists ask whether this will prove a turning point for environmental, social and governance issues.

The AIQ Podcast: Climate emergency

6 May 2020

This latest episode of the AIQ Podcast goes back to basics on climate: we explore leading scientists’ understanding of how the world is changing, as well as the investment community’s response.

The AIQ Podcast: The psychology of climate change

4 Mar 2020

This latest episode of the AIQ Podcast explores the psychology of climate change and how to engage individuals in the quest for solutions.

Climate change: The journey from denial to crisis

28 Feb 2020

Why asset managers cannot be passive on climate change

28 Feb 2020

As active investors step up their engagement efforts on the climate crisis, discussions need to be at the CEO rather than board level, argues David Cumming.

Apathy, anger, action: The psychology of climate change

28 Feb 2020

Stranded! When assets become liabilities

28 Feb 2020

‘Sticking’ it to carbon: The pros and cons of taxing emissions

28 Feb 2020

With governments urged to do more to tackle climate change, carbon taxes are being touted as a politically expedient solution.

Slash and burn: The link between land use and climate change

28 Feb 2020

Poor land management contributes to rising global temperatures. But solutions are emerging as new technologies improve farming efficiency and consumers shift towards climate-friendly diets.

Hot water: The threat of warming oceans

28 Feb 2020

As the challenges posed by climate change continue to loom large, due attention should be given to oceans, not just the solid ground under our feet and the air we breathe.

An inconvenient transition

28 Feb 2020

Climate data: Seeing through the fog

28 Feb 2020

Big data is heralded as the answer to almost every problem, so why not the climate crisis?

Nuclear: From pariah to saviour?

28 Feb 2020

View all responsible investment thinking

Economic research

What do rising US-China tensions mean for global markets?

24 Jun 2020

Defined Benefit pensions de-risking: A covenant and investment view

23 Jun 2020

Have traditional safe havens lost their edge?

9 Jun 2020

COVID-19 has reminded investors of the importance of defensive positions within portfolios during times of stress. But are the ‘safe havens’ of the past still up to the task?

Will COVID-19 prove a watershed for ESG?

14 May 2020

The AIQ Podcast: Climate emergency

6 May 2020

This latest episode of the AIQ Podcast goes back to basics on climate: we explore leading scientists’ understanding of how the world is changing, as well as the investment community’s response.

COVID-19: What will unprecedented policy response mean for economies and markets?

27 Apr 2020

While global policymakers around the world have acted with unprecedented speed and force to the COVID-19 pandemic, their actions are unlikely to prevent the world falling into the deepest recession since World War II.

COVID-19: This time is different?

3 Apr 2020

Black swan or grey rhino: Should investors have seen COVID-19 coming?

27 Mar 2020

The devastating coronavirus outbreak has prompted renewed discussion of “black swans”: rare, unexpected events that wreak havoc on markets and economies. But is COVID-19 really a black swan? And to what extent can investors ensure their portfolios are resilient to sudden shocks of this kind?

The implications of COVID-19 for real assets

19 Mar 2020

RPI may be flawed, but changes shouldn’t cost pensioners and investors

16 Mar 2020

The AIQ Podcast: The psychology of climate change

4 Mar 2020

This latest episode of the AIQ Podcast explores the psychology of climate change and how to engage individuals in the quest for solutions.

Climate change: The journey from denial to crisis

28 Feb 2020

Why asset managers cannot be passive on climate change

28 Feb 2020

As active investors step up their engagement efforts on the climate crisis, discussions need to be at the CEO rather than board level, argues David Cumming.

Apathy, anger, action: The psychology of climate change

28 Feb 2020

Stranded! When assets become liabilities

28 Feb 2020

‘Sticking’ it to carbon: The pros and cons of taxing emissions

28 Feb 2020

With governments urged to do more to tackle climate change, carbon taxes are being touted as a politically expedient solution.

View all economic research

AIQ Client Matters

Analysis and commentary specific to you and your industry.

House View

A quarterly publication which encapsulates the thinking of our investment team.

Stranded!

Recent thinking

AIQ Features

Equities

Fixed income

Multi-asset & multi-strategy

Real assets

Responsible investment

Economic research

AIQ Client Matters

House View

Stranded!

Recent thinking

AIQ Features

Equities

Fixed income

Multi-asset & multi-strategy

Real assets

Responsible investment

Economic research

AIQ Client Matters

House View

Institutional investor