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Posts From L & G

CIO autumn update : Countdown to COP26

CIO autumn update : Countdown to COP26

🕔10:55, 15.Sep 2021

We now know that the world risks a grim future even if the global economy is decarbonised rapidly, according to a landmark report on climate change. The assessment makes clear: inaction is simply not an option for policymakers, companies and

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Decarbonisation: seeking stratospheric performance 2021

Decarbonisation: seeking stratospheric performance 2021

🕔12:31, 4.Aug 2021

Decarbonisation was one of the biggest themes of 2019 and 2020. Rightly so, we would argue. With the 2021 United Nations Climate Change Conference (COP26) taking place in November, this could be another important year for decarbonisation. Global temperatures are

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AA Q3 outlook: Summertime for investors? 2021

AA Q3 outlook: Summertime for investors? 2021

🕔00:33, 29.Jul 2021

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

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ESG impact report Q1 2021

ESG impact report Q1 2021

🕔10:35, 28.May 2021

To be successful, companies need to have people at the helm who are well-equipped to create resilient long-term growth. By voting and engaging directly with companies, we encourage management to control risks while seeking to benefit from emerging opportunities. We

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Private Credit Outlook 2021

Private Credit Outlook 2021

🕔10:33, 17.May 2021

2020 was a difficult year, for society, businesses and markets alike. The pandemic presented new and unforeseen challenges, creating periods of extreme uncertainty, and correspondingly high volatility in financial markets. As a result, governments and central banks around the world

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Q2 Outlook: Staying the course

Q2 Outlook: Staying the course

🕔15:45, 3.May 2021

With record amounts of stimulus still gushing through global markets, and the economic cycle at a relatively early stage, we remain positive on risk assets. Risk assets have notched up strong and even spectacular returns from their pandemic lows, prompting

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CIO outlook: Time for Healing Q4 2020

CIO outlook: Time for Healing Q4 2020

🕔10:59, 9.Dec 2020

After contending with the terrible human and economic toll of a pandemic, as well as market volatility reminiscent of the financial crisis, investors could well be forgiven for wondering anxiously: what could 2021 possibly have in store for us?

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Fixed Income Outlook – Q4 2020

Fixed Income Outlook – Q4 2020

🕔14:43, 20.Nov 2020

Introduction: Binary outcomes In our recent CIO Autumn Outlook, we highlighted the binary nature of the key event risks heading into the final quarter, all of which still have the scope to move markets significantly. These are the US presidential

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Secure income assets: new opportunities for a new decade

Secure income assets: new opportunities for a new decade

🕔14:36, 23.Oct 2020

DB (defined benefit) pension schemes are progressing along their journey to end-game, with many becoming increasingly cashflow negative and struggling to balance competing requirements for returns and cashflow.  In this environment we believe that the cashflows, diversification and return-generating nature

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Endurance test

Endurance test

🕔09:30, 14.Oct 2020

CIO autumn update The more things stay the same… Change may be the only constant over the coming months. We believe investors will need to be dynamic in striking a balance between managing risks and seizing opportunities. Since we published

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CIO autumn update: Endurance test

CIO autumn update: Endurance test

🕔07:36, 25.Sep 2020

Change may be the only constant over the coming months. We believe investors will need to be dynamic in striking a balance between managing risks and seizing opportunities. Since we published our last outlook, many of the dynamics we observed

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ESG in LGIM’s Active EMD investment process

ESG in LGIM’s Active EMD investment process

🕔15:10, 28.Aug 2020

As fixed income professionals, one question we find ourselves increasingly answering is: How do you make the connection between environmental, social and governance (ESG) considerations and credit? For most people, there is an intuitive connection to be made when it

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Q3 Outlook: Optimism versus reality

Q3 Outlook: Optimism versus reality

🕔09:58, 17.Jul 2020

We believe there is a striking disconnect between market pricing and the real economy, especially with regard to expected company earnings. In the past three months, risk assets have pulled back from the brink of collapse, as policy makers hosed

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Are secure income assets being overlooked?

Are secure income assets being overlooked?

🕔11:23, 9.Jun 2020

As activity in public credit markets has oscillated across our screens, private credit markets have been largely overlooked. In our view, this is an oversight for investors. We believe the attributes associated with private debt become more valuable during periods

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Finding the greenest generation

Finding the greenest generation

🕔13:45, 26.May 2020

Our research into the ESG views of Boomer, Gen X and Millennial savers f someone had told me, late in 2018, that over the next two years we would see forest fires devastate Australian wildlife; witness sightings in the US

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Safety first

Safety first

🕔14:46, 15.May 2020

Q2 Outlook In our last quarterly outlook, we flagged our cautious posture on risk assets, taken due to a number of smouldering risks on the horizon. One risk we did not highlight, however, was that a pandemic would break out,

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The Consolidator Conundrum

The Consolidator Conundrum

🕔09:57, 14.Apr 2020

As defined benefit (DB) pension schemes mature and become better funded, they are increasingly considering various different end-game approaches.  In previous papers, we have explored new developments in ways of thinking about pension scheme risk in end-game and on the

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Actively diversified: harnessing multiple return sources

Actively diversified: harnessing multiple return sources

🕔13:28, 18.Feb 2020

The long bull market in equities might seem to some like evidence against the benefits of diversification, but we believe now is the time for schemes to consider how diversification, and particularly the inclusion of alternative strategies, could help the

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Mind the traps

Mind the traps

🕔16:56, 27.Jan 2020

Q1 Outlook Since our last quarterly note, where we focused on the threats to the world economy, political and international events have meant that the global economic backdrop has become somewhat more positive and market positioning is less stretched than

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CIO 2020 Outlook: Year of Change

CIO 2020 Outlook: Year of Change

🕔08:20, 19.Dec 2019

In this outlook, teams from across LGIM examine the opportunities and risks with which investors are presented in this context. Here are some of our conclusions: Global growth may ultimately disappoint investors even as recession fears abate The many ways

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Market Insights Q4 2019 Outlook – Gathering clouds

Market Insights Q4 2019 Outlook – Gathering clouds

🕔12:10, 5.Nov 2019

We turn cautious on global equities on a tactical and medium-term view, as US stocks flirt with record highs even though risks to the world economy are mounting. In our last quarterly note, we pointed out that investors faced a

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The Power of Data Science

The Power of Data Science

🕔10:03, 14.Oct 2019

Ros Altmann, former UK pensions minister, has spoken of the need to “make pensions digital”. The Department of Work and Pensions’ Pensions Dashboard aims to do just that, by collecting and curating information about members’ multiple defined benefit (DB) and

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CIO outlook: Opportunities in adversity

CIO outlook: Opportunities in adversity

🕔11:50, 4.Oct 2019

When contemplating what the final months of 2019 might have in store, we are probably similar to many other investors in feeling somewhat apprehensive, given the challenges we face: trade tensions, slowing growth, policy uncertainty and, of course, Brexit. 

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Modern Monetary Theory: are defcit hawks an endangered species?

Modern Monetary Theory: are defcit hawks an endangered species?

🕔15:32, 25.Sep 2019

A once-fringe economic theory has been embraced by liberal politicians at the same time as traditional budget hawks have been in retreat. Its rise has potentially radical implications for infation and investors Decades into an era of declining infation and

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Opportunities in adversity

Opportunities in adversity

🕔12:48, 20.Sep 2019

When contemplating what the final months of 2019 might have in store, we are probably similar to many other investors in feeling somewhat apprehensive, given the challenges we face: trade tensions, slowing growth, policy uncertainty and, of course, Brexit. Looking

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Responsible investing: factor friend or foe?

Responsible investing: factor friend or foe?

🕔17:46, 30.Aug 2019

Can environmental, social and governance concerns (ESG) ft within a factor-based portfolio? In this article, we tackle two issues: the inconsistency in methodologies for ESG scoring, and ways to integrate ESG considerations into factor portfolios.  As growing numbers of investors

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Long-term Thinking – Demographics For Investment Professionals

Long-term Thinking – Demographics For Investment Professionals

🕔12:07, 19.Aug 2019

Retirement anxiety, rate depression, populism… and what to do about it With global interest rates remaining near all-time lows, and $15 trillion of debt providing investors a negative yield, bond-market bears are in danger of becoming extinct. But could today’s

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The signals and the noise

The signals and the noise

🕔10:41, 31.Jul 2019

Following the recent rally, we have dialled down our tactical equity exposure to neutral from positive, in light of market expectations for central bank action and the still-simmering trade war 

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Material change: a fve-step ESG checklist for trustees

Material change: a fve-step ESG checklist for trustees

🕔17:52, 19.Jul 2019

How can pension trustees prepare for new requirements on the fnancial materiality of environmental, social and governance (ESG) factors? ‘ESG considerations’ mean many things to many people – not least regulators, who are now viewing them as core to the

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Market Insights Q2 2019 – Outlook Remaining Bullish as the cycle goes on

Market Insights Q2 2019 – Outlook Remaining Bullish as the cycle goes on

🕔17:02, 30.Jun 2019

Three months ago, following a brutal period for equities, we noted that investors were likely to be rewarded by “being fearful when others are greedy – and greedy when others are fearful”. Spectacular returns over the first quarter demonstrated the

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Climate Impact Pledge: Tackling the climate emergency

Climate Impact Pledge: Tackling the climate emergency

🕔15:00, 24.Jun 2019

The second annual results of our Climate Impact Pledge showcase the corporate leaders and laggards on climate action; we are encouraged by improvements across sectors but will continue to press companies to meet this era-defining challenge.

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Going Dutch: the prospects for and implications of a four-day working week

Going Dutch: the prospects for and implications of a four-day working week

🕔14:04, 11.Jun 2019

Fundamentals A future in which there is less work to be done will radically reshape the economy, with important consequences for investors – including some contrarian implications for the consumer and real-estate sectors.

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How to optimise diversification to improve risk-adjusted returns

How to optimise diversification to improve risk-adjusted returns

🕔17:02, 11.May 2019

How can expected returns be enhanced without increasing risks? We discuss cutting-edge visualisation tools and a first-principles approach to secure the predictable benefits of a diversified portfolio.

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Managing risk in turbulent times

Managing risk in turbulent times

🕔17:02, 2.May 2019

Four practical steps DB pension schemes can take to help them navigate volatile markets. 2018 will probably be remembered as the year volatility returned to the market. As highlighted in our CIO’s investment outlook, (Brace for a credit squeeze) there

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Material change: a fve-step ESG checklist for trustees

Material change: a fve-step ESG checklist for trustees

🕔13:03, 3.Apr 2019

How can pension trustees prepare for new requirements on the fnancial materiality of environmental, social and governance (ESG) factors? ‘ESG considerations’ mean many things to many people – not least regulators, who are now viewing them as core to the

Read Full Article
Material change: a fve-step ESG checklist for trustees

Material change: a fve-step ESG checklist for trustees

🕔13:03, 3.Apr 2019

How can pension trustees prepare for new requirements on the fnancial materiality of environmental, social and governance (ESG) factors? ‘ESG considerations’ mean many things to many people – not least regulators, who are now viewing them as core to the

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ESG: Separating truth from fiction in the hunt for sustainable dividends

ESG: Separating truth from fiction in the hunt for sustainable dividends

🕔14:00, 15.Mar 2019

ESG For the Kempen Dividend team, Environmental, Social and Governance (ESG) criteria are an integral part of the investment process. Their unique methodology makes sure that they take all aspects of a company’s ESG risks and opportunities into account when

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Responsible investing: factor friend or foe?

Responsible investing: factor friend or foe?

🕔11:03, 7.Mar 2019

Can environmental, social and governance concerns (ESG) ft within a factor-based portfolio? In this article, we tackle two issues: the inconsistency in methodologies for ESG scoring, and ways to integrate ESG considerations into factor portfolios.

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Brace for a credit squeeze

Brace for a credit squeeze

🕔19:02, 11.Feb 2019

CIO Investment Outlook  Unfortunately for markets, our bearish outlook for 2018 came to pass. For 2019, the key question is how tightening fnancial conditions will impact heavily indebted borrowers – and whether this raises the risk of recession. 

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investing in the twilight zone

investing in the twilight zone

🕔14:04, 3.Jan 2019

The economic expansion of the last decade has been a consistent tailwind for financial assets. We see next year as the start of the twilight zone between expansion and an eventual downturn that will likely mark the end of the

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Zombie pension schemes: a viable alternative?

Zombie pension schemes: a viable alternative?

🕔13:03, 14.Nov 2018

DB Solutions Will it become more common for DB schemes to run off without sponsor support? We look at how to assess the viability and trade-offs of operating under such arrangements and how investment strategy could be set.

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Good growth, poor politics

Good growth, poor politics

🕔14:04, 7.Aug 2018

Q3 market outlook Developments in trade tensions, emerging markets and European politics may determine the trajectory of markets over the coming months. Two countervailing forces have kept markets in something of a holding pattern since March: growth in the global

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What the battle against plastic means for oil demand

What the battle against plastic means for oil demand

🕔14:04, 7.Aug 2018

Fundamentals Cleaning up the world’s plastic waste will be a monumental effort – one which will have major implications for petrochemical companies and the long-term demand for oil

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Expect the bumpy journey to continue

Expect the bumpy journey to continue

🕔15:04, 12.Jul 2018

CIO Investment Outlook Investors have been buffeted by a large number of negative headlines in 2018. We remain of the view that tightening global liquidity conditions are likely to exacerbate market volatility.  As we highlighted in our year ahead outlook,

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Equities for the long run?

Equities for the long run?

🕔15:04, 14.Jun 2018

The impact of uncertain assumptions on strategic asset allocation. Traditional models suggest there is a very high chance equities outperform over the long term. But are they overconfdent, and should long-term investors adjust their asset allocation accordingly? 

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MiFID II: key impacts for the retail market

MiFID II: key impacts for the retail market

🕔07:13, 6.Jun 2018

On 3 January 2018, the existing European legal framework governing financial markets in the EU was replaced with a revised directive and new regulation (together, 'MiFID II'). 

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Overcrowding and capacity in factor-based investing: Should we be worried?

Overcrowding and capacity in factor-based investing: Should we be worried?

🕔15:04, 2.May 2018

Many investors combine concerns over overcrowding in factors with capacity fears. We want to help separate these terms and provide some clarity over the current state of factors.

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Boom then bust?

Boom then bust?

🕔14:04, 30.Apr 2018

Can cyclical tailwinds paper over the structural cracks? And what’s the outlook for global trade, China and equity investors?  The ‘goldilocks’ environment of steady global growth and low inflation has started to give way to stronger growth and rising inflation

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Five reasons to invest in global infrastructure

Five reasons to invest in global infrastructure

🕔06:07, 26.Apr 2018

Infrastructure is all around us; roads, railways, pipelines and pylons. These are the physical assets that allow an economy to function effectively. They allow people to move domestically and internationally and allow services such as water, electricity, gas and telecoms

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LGIM leads peers in demanding climate action

LGIM leads peers in demanding climate action

🕔05:08, 19.Apr 2018

LGIM supported the vast majority of shareholder votes on climate change in the US in 2017 – more than the six largest asset managers in the world combined – as part of our efforts to press companies to address long-term

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