Climate action is high on everyone’s agenda, and as such, there is a lot of focus on green bonds. The Covid-19 pandemic has also shone a light on social bonds – securities designed to fund measures aimed at addressing social
As recovery from the Covid-19 recession appears to be gaining traction, prospects for rebounding economic growth and employment across UK regions and cities is now worth contemplating. Initially, the recovery should revive activity and jobs in the sectors that were
Emerging Asia’s stocks and bonds have experienced a lost decade. In the past 10 years, their returns, in US dollar terms, have lagged those of global indices by a considerable margin. And that is despite the fact that these economies
We continue to favour staying long equities, and are prepared to increase our exposure in a dip, as investors bask in the sunshine of a global economy in mid-cycle. From a strategic perspective, the current market environment is increasingly challenging
U.S. Treasury yields declined last week despite stronger-than-expected inflation data, as the market moves to price in higher odds of earlier Federal Reserve tightening and somewhat lower longer-term growth and inflation. HIGHLIGHTS Most fixed income sectors performed well, with taxable
IN BRIEF Traditional investment approaches are unlikely to meet investors’ long-term goals in the coming years. Simply taking on more market risk will not suffice. There’s no single silver bullet here. Yet investors can reach a 7% return target by
What kind of an asset is it? Its origins: how did decentralised finance give birth to blockchain database? How a number of ESG concerns are related to the way different cryptocurrencies have been structured and programmed to function? What's next
Waarde weer op waarde geschat De door grote Amerikaanse technologie gerelateerde bedrijven veroorzaakte bubbel heeft voor langdurige problemen gezorgd voor de value factor. Sinds de aankondiging van de succesvolle ontwikkeling van coronavaccins, begin november 2020, is die trend doorbroken. De
Is pent-up consumer demand the key to unlocking value in Europe? In this article, John Bennett, Director of European Equities, considers some of the meaningful trends he believes could drive positive momentum in the region. Key takeaways As we progress
Mid-Year Outlook 2021 The view of investors on the outlook for US growth and inflation has varied significantly over the course of the year. Following the positive vaccine trial results last November, and particularly with the Democratic Senate victories in
The serenity of equity markets is deceptive. Another month, another rise in major equity indices. Indeed, it has been very smooth sailing for stock markets for six months or so now—or at least that’s how it has appeared on the surface.
The European Commission has unveiled its Fit for 55 roadmap1 setting out the transformation to deliver the European Union’s 2030 target of reducing net greenhouse gas emissions by at least 55% by 2030. This is a vital step to ensure
These past few weeks have seen an interesting shift in investor fears, from inflation to growth, and back again – with a dose of Delta variant fear added to the mix. Indeed, growth is likely to have already peaked in
De klimaatmaatregelen waar beleidsmakers voor staan zijn misschien wel de belangrijkste keuzes in de geschiedenis van de mensheid. De omslag van fossiele brandstoffen naar duurzame energie, vormt slechts een deel van de oplossing. In Nederland is er dit jaar weinig
As responsible investors, Candriam engages along the full food value chain, especially food retailers. We support better product safety practices for food. If a pesticide is banned in one country but permitted in another, that chemical can still enter the
Can there be such a thing as too much money? There is certainly a huge amount of money sloshing through the US financial system, which is straining the shortterm funding market and threatening to push short-dated Treasury yields below zero.
Flash update: The investment universe of Emerging Market (EM) green, social and sustainability bonds has grown rapidly, and annual issuance has nearly tripled since 2016 (Chart 1). Due to the Covid-19 pandemic, we saw a significant rise in … For
Weekly investment update: Beginning last year, many companies stopped providing forward guidance, that is, their view on whether sales and profits would be higher or lower than the last time they had spoken with analysts and investors. At the time,
Global Asset Allocation: The View From Europe Following a shaky start to its vaccine rollout, Europe appears to be recovering as businesses are reopening and lockdowns continue to ease in some areas. As the European Central Bank debates the extension
Weekly investment update: Another month, another US inflation report beating market expectations. Headline year-on-year consumer price index (CPI) inflation has gone from 1.1% last November to 4.9% in May. Even though economists knew that base effects meant the rate of
As an active shareholder, we opposed 34% of resolutions, a rate that has been rising for several years and is up from 32% in 2020. That percentage was already 10 points above the rate in 2018. We opposed 911 resolutions
Weekly investment update: New cases have continued to climb around the world and are now at 440 000 per day, up from 390 000 last week. A rise in cases in Asia, Europe, and North America has offset a decline
Despite investor worries about the impact of semiconductor shortages to automotive production and input cost inflation, the automotive industry remains healthy and the evolution of the industry towards electric vehicles remains strong.
Strategic Sector Selector The resilience of the rally in global equities was tested in the second quarter of 2021 by a resurgence of COVID-19 cases and more hawkish messages by the US Federal Reserve. However, markets continued to grind higher
Every two years, we take a close look at the performance of the private equity industry given its rising share of institutional and individual portfolios. Our findings this year: the private equity industry is still outperforming public equity, but this
27th Reserve Management Seminar UBS RMS Survey is among the most authoritative depictions of official reserve management activities available. This survey was conducted during April – June 2021 and collected responses from close to 30 central banks from all regions
KEY POINTS Our climate research shows that certain asset classes and regions face material and growing climate risks in the next 10 to 30 years. Allocators should anticipate a wider range of outcomes in climate-sensitive asset classes and, potentially, plan-level
Bond defaults have been rising since the start of the deleveraging process in 2017. This has pushed up corporate bond spreads, kept them high and made them volatile. Defaults used to affect mostly private companies: They accounted for more than
KEY INSIGHTS The value style of investing “caught a bid” after encouraging vaccine news from Pfizer last November. Since then, the value style dramatically outperformed the growth style. This came after a decade of underperformance. The extreme divergence in performance between
House View Restrictions are being lifted in the developed world releasing pent-up demand. Fiscal and monetary policy remains hugely accommodative. This will result in high growth figures in the coming quarters. The pandemic is however far from over as variants
On 7 June 2021, the G7 agreed to make climate reporting mandatory, in line with the recommendations of the global Taskforce on Climate-related Financial Disclosures (TCFD). Climate risk looks at the risks related to the transition to a lowercarbon economy,
Multi Asset Credit (MAC) en Absolute Return Fixed Income-strategieën concurreren al lang om de aandacht van beleggers. Maar is het zinvol de ene optie te kiezen boven de andere? Wanneer de rentevoeten zeer laag of zelfs negatief zijn, zijn positieve
Market weekly: We recently saw the consensus view held by the market on US interest rates bowled over by the Federal Reserve. Whereas the market expected no or at the most one interest rate rise over the next two years,
Digital drive will boost productivity growth Why China’s vaccine surge is good news for the world How will age-related spending change in the next decade
SUMMARY The global economy is in a mid-cycle expansion, following peaks in policy support and growth, and what is likely a transitory spike in inflation. We expect global growth to moderate to a still abovetrend pace in 2022. Growth-oriented assets, such as equities
Over the last few years, the private equity industry has radically reassessed the importance and value of ESG to their businesses. ESG has shifted from being considered an area of just compliance, to an overarching framework that informs the strategic
Despite investor worries about the impact of semiconductor shortages to automotive production and input cost inflation, the automotive industry remains healthy and the evolution of the industry towards electric vehicles remains strong. After finishing 2019 at roughly 89 million units,
The year 2021 constitutes a key phase in the fight against climate change and in the global efforts to meet emissions targets in the 2015 Paris Agreement. The agreement aims to limit global warming “ideally” to 1.5 degrees Celsius (°C),
Alex Bernhardt, het nieuwe Global Head of Sustainability Research van BNP Paribas Asset Management, onderzoekt de door klimaatverandering veroorzaakte redenen van luchtverontreiniging en hoe we het probleem kunnen aanpakken. De kwaliteit van de lucht die we inademen kan een aanzienlijke
This July, we find ourselves looking back on a half a year of upside surprises. As the year started, we expected an better run than we had in 2020, which was a low standard to surpass. Rapid progress distributing vaccines
President Joe Biden’s first months in the White House fully reflect his administration’s commitment to pursuing a transition to a low carbon economy. Biden has rejoined the Paris Agreement and recently announced a highly ambitious target to reduce emissions by
The race to decarbonise the global economy has the potential to turn the commodities market upside down. And this will have wide-ranging implications for emerging markets (EM). Most of the world’s largest economies are targeting “net zero” emissions of carbon
A shift from ‘lowflation’ to a moderately rising inflation regime could bring with it greater dispersion in asset returns. While ultimately positive for investors, the transition may …
We see equities in developed markets (DMs) outside the U.S. as better positioned to capture the …
The EBA has received several mandates to assess how to include Environmental, Social and Governance (ESG) risks into the three pillars of the banking prudential framework. This report assesses their potential inclusion in Pillar 2 by providing common definitions of
It is becoming clear that the post-Covid recovery will resynchronise in the second half of the year as economies reopen while vaccinations campaigns pick up speed, especially in continental Europe. Global trade is bouncing back at a faster-than-expected pace, resulting
Thematic investing is no longer niche. Assets in these funds have grown at an annual rate of 37% since 2018, but the unprecedented events of 2020 in the wake of the COVID-19 pandemic significantly boosted this growth to
In our recent paper, “Weathering the Storm: Exploring Climate Strategies”, we explored the main approaches to integrating climate considerations in investment portfolios. In this article, we dive deeper and look at some nuances in climate data that need to be
The latest ‘dot plot’ published after the June meeting of the US Federal Open Market Committee (FOMC), showing the participants’ assessment of the appropriate future level for the federal funds rate, had 13 out of 18 FOMC members foreseeing a
June showed similar trend characteristics to earlier in the year, with value and cyclical exposures rising again — but with a hint of caution caused by the emergence of new COVID variants and concerns over Fed tapering. Europe and the
