UBS quarterly report shows private markets had lower volatility in returns, encouraging increased allocations to alternatives, and a preference for sustainable investments is likely to continue with new regulatory requirements, pointing to tailwinds for sustainability themes in private market investments.
The alternative fixed income asset class offers investors a diverse range of investment options, including private debt, consumer loans, mortgage investments, insured loans, SME loans, infrastructure debt, and asset-backed securities (ABS). These assets have the potential to provide higher yields
Paving the way for 2023 (and beyond): The infrastructure sector remains resilient despite the market turmoil in 2022. Secular trends such as digitalization and decarbonization will continue to drive the need for new investments. However, macro conditions have worsened significantly.
Sustainable infrastructure Infrastructure is at an inflection point. In response to the rising urgency of climate action, demographic shifts and pandemic-induced fiscal boosts, we are witnessing a momentous shift in the nature of infrastructure investment. Gone is the historical focus
Driving energy transition A global pandemic, multi-billion-dollar infrastructure investment plans, rising inflation, green stimulus, and a focus on decarbonisation have seen the demand for infrastructure investments rise exponentially. While most investors immediately look to unlisted offerings, we believe they should
Brazil has the world’s sixth largest population, and its gross domestic product (GDP) places it among the 15 largest economies. Brazil benefits from an abundance of natural resources, and this abundance positions the country as a global leader in the
Investing in infrastructure has become popular among institutional and private investors in recent years. Investors could be attracted to the potentially long-term, low-risk and inflation-linked profile that can come with infrastructure assets, and they may find that it is an
Private markets rebounded in 2021, after a year of pandemic-driven turbulence that suppressed fundraising and deal making. Fundraising climbed to a record of almost $1.2 trillion, up by almost 20 percent over 2020. Growth was widespread across asset classes and
Inflationary pressures will likely peak but not disappear Inflation, once thought transitory, now appears more durable. Supply-demand imbalances, while an expected aspect of the economic cycle, have been exacerbated by the unprecedented nature of pandemic shutdowns. The workforce remains constrained
Alts in aggregate Real estate Infrastructure Private Markets Hedge funds
The Infrastructure Investment and Jobs Act is one of several positive drivers for municipal bonds in the new year. After months of debate, Congress passed the $1.2 trillion Infrastructure Investment and Jobs Act (“IIJA”), which was signed by President Biden
INTRODUCTION In the year that followed the onset of the global COVID-19 pandemic, there was an unprecedented surge in construction costs. Nationwide, building materials rose at the fastest pace in a decade from March 2020 to September 2021 (Figure 1).
The options for institutional investors to gain exposure to ESG have never been greater. The public markets, for example, have seen net new money into sustainable investment funds increase from USD 17.5 billion in the first …
This November sees the UK play host to COP26 – the 26th Conference of Parties – where global leaders from almost 200 nations will come together and discuss climate objectives and, more importantly, revisit the commitments made as part of
Responsible Investment has witnessed strong growth over the past five years. However, the past six months have seen it embark on a much steeper trajectory. If we take a Google Analytics view on worldwide searches for “ESG” (environmental, social and
A range of emission and temperature change scenarios are examined. It is clear that technology will be key in mitigating change. However, we think large-scale adaptation could benefit infrastructure, engineering, housing and …
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,
Let’s make an (infrastructure) deal. On June 24th, the bipartisan Senate coalition reached a compromise on a US$1.2 trillion infrastructure package over the next eight years, which includes
Resilient and essential in the Post-Covid environment As an asset class, infrastructure debt possesses key characteristics that contribute to resilient performance. These include the large physical nature of the underlying asset, high barriers to entry and stable revenues linked to
What to do in a negative-yield world? Declan O’Brien, Head of Infrastructure Research and Strategy and Perry Offutt, Head of Infrastructure Americas, give a deep-dive into the evolving and emerging infrastructure sector and the role it can play in investors’
For the first time since the advent of the internal combustion engine, a complete transformation in car transport is underway. Instead of personally-owned, gasoline-powered, humandriven vehicles, the advanced economies are transitioning to electric-powered and driverless vehicles, paid for by the
Getting the balance correct between short-term relief checks and long-term infrastructure spending is critical Last summer, at the height of the Covid-19 crisis, I bought and built a swing set for my grandchildren. Construction was reasonably straightforward and – remarkably
Expect tax hikes to fund infrastructure upgrades and innovation. President Joe Biden’s first address to Congress conveyed, in no uncertain terms, that his first 100 days are a precursor for what’s next on his agenda: a significant, paradigm-shifting investment in America’s
Waarom schone energie-aandelen moeten worden overwogen als onderdeel van een allocatie aan infrastructuur. Het upgraden van de infrastructuur kan de productiviteit van een economie een boost geven. Erin beleggen is net zo waardevol. Als belegging leveren reële activa zoals elektriciteitsnetten
Valuations of clean energy stocks, as represented by the iShares Clean Energy index, (an exchange-traded fund (ETF) that we view as a proxy for the clean energy equity sector), are now up by around 16% from the lows in early March.
COVID-19 will leave an indelible scar on people and businesses which will take time to heal. While optimism mounts as global vaccination gets underway and spring shoots of recovery break through, the ever-present challenges that loom large on the …
Ushered into existence by government subsidies and guarantees, the renewable energy infrastructure sector has grown into a diverse, global and highly competitive asset class. Appetite for renewable energy infrastructure among asset owners has been extremely …
Rising global temperatures are causing permafrost— ground that remains frozen at 0 degrees or colder for at least two years consecutively—to thaw. For Russian mining and energy companies that have operations in permafrost areas, this climate change effect presents a material risk as it can weaken foundations and even …
In a turbulent 2020 infrastructure was an apparent safe haven, proving relatively resilient. However, the unprecedented shock to the asset class across all industry sectors and geographies at the same time, in a short period of time, has provided food for thought on several issues.
We expect Chinese economic recovery to remain on track with strengthening endogenous momentum. China continued its economic recovery in 3Q but the drivers were different from those in 2Q: infrastructure investment growth slowed on the margin, while manufacturing investment growth
When you think of infrastructure you might immediately picture transport networks, buildings or sewage, water and electrical systems: physical things, or hard landscape elements. But as with most things in a world in which the Covid-19 outbreak has shaken up
Alternatives AUM exceeds $10tn milestone amid challenging market conditions The alternatives industry has just set a new record: global assets under management (AUM) have surged to $10.31tn. We’re now well on our way to meeting Preqin’s 2018 forecast of $14tn
2020 Real Assets Outlook Coronavirus… The ongoing impact of Covid-19 on the global economy has dramatically altered our outlook on inflation, risk and asset class returns. Going into 2020, valuations for many risk assets were rich and expected returns were
Interview with Jeremy Anagnos, CFA Last Wednesday, 15 July 2020, Nordea AM hosted their weekly Morning Espresso session. The session starts with Sébastien Galy, Senior Macro Strategist, who gives a macro
Market commentary As the year began, so it ended, with yet another strong month for risk assets in December, capping one of the best years for markets since the financial crisis. Equities again led the charge, but leadership for once
Private markets 2020 With private investments playing an increasingly important role in most institutional portfolios, the private markets have continued to evolve. They have grown deeper and more dynamic in terms of new strategies, new fund managers and geographies. They have also become
Key takeaways: While China and the US were keen to sign a ceasefire agreement (‘phase one’) to the trade war, substantive issues have been deferred until after the US election in November 2020. We should not expect significant stimulus from
ONE-DIMENSIONAL. FLAT. SILOED. GENERIC A common criticism of alternatives investment guidance is that it lacks the depth, breadth and context to have a meaningful impact on broader portfolio design and implementation. In this, our second annual Alternatives Outlook, with an
Why middle-market infrastructure has a place in every investor’s portfolio Can you define what middle market means within private infrastructure? First of all, the phrase “middle market” is a bit opaque in our industry. In my mind, it involves equity
A new generation is flocking to cities, driving major economic and social shifts Bright city lights are shining on alternative investment opportunities as urbanization trends impact everything from agriculture to real estate to infrastructure The story of the past century
Strategy Espresso Over the last decade, demand for infrastructure investments has increased dramatically. Following the Global Financial Crisis, investors have looked to better diversify their portfolios by increasing exposure to assets with low or negative correlation to broader equity markets. An allocation
An opinion about change | Technology As the lines between infrastructure and private equity become increasingly blurred, the question of categorization – while topical – becomes more trivial. A more relevant consideration is to understand the risks around the cashflows
Infrastructuuraandelen zijn ongekend populair onder beleggers. In 2018 gaan ze waarschijnlijk een record vestigen als het gaat om investeringen in niet-beursgenoteerde infrastructuurprojecten.1 Waarom? Infrastructuurinvesteringen bieden een vrij hoog rendement dat beleggers die behoefte hebben aan regelmatige inkomsten, zoals verzekeringsmaatschappijen en
Investors are embracing infrastructure assets like never before. In 2018, they look likely to set a record for unlisted infrastructure fundraising at the time of writing.1 Why? Infrastructure assets can offer relatively high yields that investors with regular income needs,
In this article we explore the added value of infrastructure debt in a portfolio context. We show results for pension funds and insurance companies. Infrastructure debt appears to have an attractive risk-return tradeoff in combination with diversification potential in a
Pensioenfondsen en verzekeraars streven ernaar om het rendementspotentieel van hun beleggingen zoveel mogelijk te vergroten binnen de gestelde risicokaders. Infrastructuurbeleggingen kunnen een uitkomst bieden, omdat deze een interessant overrendement bieden ten opzichte van vergelijkbare staats- en bedrijfsobligaties. Over de laatste
Infrastructure white paper series | Part 3 This is the final installment of our infrastructure white paper series. Our first paper, The case for infrastructure debt (click here ), provided a closer look at the growing area of infrastructure debt.
Infrastructure
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
Social infrastructure has a positive impact on communities. It helps develop a more inclusive and sustainable society. We define social infrastructure as the physical assets that facilitate social services, helping build strong communities. Assets include healthcare and education facilities, social
