Climate scenario analysis – a unique investment framework

Climate change is one of the defining issues of our age. Its physical manifestations are negatively affecting ecosystems, human health and economic infrastructure. The transition to a zero-carbon economy presents significant challenges, but also opportunities for investors.

To properly account for these risks and opportunities we have developed a unique approach to climate-scenario analysis. Through this, we integrate the macro and micro drivers of climate impacts on asset prices within a probabilistic framework. Our insights are then embedded in our business strategy, investment processes and the development of climate-driven solutions for our clients. In doing so, we believe we can build more resilient portfolios and generate better long-term returns for clients.

Click here to read the full report. 

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A post-COVID economy

A post-COVID economy

The big difference between the vaccine rollouts and the scale of the stimulus measures across the world could result in a K-shaped global economic recovery, with much of the developed world booming but poorer countries continuing to struggle. However the

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Changing priorities for infrastructure investors

Investors discuss how technological change and the new green economy is re-pricing assets in infrastructure, as well as the trend to substitute fixed income with infrastructure debt. But investors should not to lose sight of traditional infrastructure characteristics in their quest to tap new trends. Predictable cashflows and downside protection remain central. 

Transparency’s many investor benefits

Research that looks at the relationship between economic transparency and defining investment qualities such as yield spreads, credit ratings and stock price volatility shows sovereign transparency helps improve the value of assets, enables countries to lower their borrowing costs and achieve a better credit rating.

Inflation is coming. Time to act

Inflation holds investor opportunities as well as perils. Emerging markets, commodities and linkers do well in a climate of rising prices while central banks are likely to act quickly and aggressively in response rather than early or gradually.

Debt levels point to subpar growth in years ahead

The unprecedented level of government debt signals sub-par economic growth ahead, warned Farouki Majeed, chief investment officer, Ohio School Employees Retirement System speaking at FIS Digital alongside Rich Randall, head of global debt at IFM Investors.

Navigating inflation: The challenge and opportunity

Inflation is the number one investor concern and whether it is here to stay was the subject of much debate at the Fiduciary Investors Symposium. While its longevity is contested it was agreed that its presence has important implications for the correlation between bonds and equities which creates problems for portfolio design. Investors at PGIM, QMAW, CPP Investments and NEST discuss.

Fiduciary Investors Symposium 2021: Day 1

Watch day one of the Fiduciary Investors Digital event like it’s a live stream. All the action and all the speakers can be viewed here.

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