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From Policy to Implementation: A Net Zero Playbook for Investors

The scientific community tells us that “climate change is a threat to human well-being” and that the window of opportunity to “secure a livable and sustainable future for all” is rapidly closing. If we fail to act, there will be catastrophic impact on the global economy, asset values, and portfolio returns. This urgency is stimulating […]

February 2023

2023 Outlook: Portfolio Wide

We expect most investors should maintain equity allocations in line with policy targets. Consistent with this idea, we believe investors with portfolios that are more diversified across risk exposures will tend to fare better than investors holding more correlated investments. Investors Following Rebalancing Plans Will Be Rewarded in 2023 Kevin Rosenbaum, Global Head of Capital […]

December 2022

2023 Outlook: Sustainability & Impact

We expect meaningful shifts in net zero and other sustainable and impact strategies toward more impactful implementation approaches. In line with this, we expect allocations to diverse managers to rise, as greater numbers of investors embrace stated investment policy objectives. Approaches to Climate & Net Zero Shift from Window Dressing to Real Change in 2023 […]

December 2022

Should Credit Investors Expect More Negative Headlines in the Months Ahead?

Yes. The combination of rising interest rates and a deteriorating earnings outlook is likely to generate ample negative headlines about credit in the months ahead. Rating agency downgrades will accelerate and defaults will rise. The flipside is that some of this is already in the price and many borrowers are prepared for these headwinds. Investors […]

November 2022

Quantitative Tightening Raises the Risks for Markets

With inflation running at multi-decade highs, monetary policymakers are united in one of the most aggressive tightening campaigns in decades. Most central banks have already significantly increased policy rates this year, and some are unwinding their massive balance sheets, also known as quantitative tightening (QT). From what we know about QT, we expect it to […]

November 2022

Asia Insights: Playing Defense

Introduction Aaron Costello, Regional Head for Asia, and Vivian Gan, Senior Investment Associate, Capital Markets Research Asian markets have had a difficult year so far due to headwinds from slowing global growth and higher inflation. Asian equities and yield-sensitive assets have sold off alongside their global counterparts amid heightened volatility and rising interest rates. Ongoing […]

September 2022

Fed Hikes Another 0.75% and Signals More Tightening to Come

The Federal Reserve announced its third consecutive interest rate increase of 75 basis points (bps) on September 22, bringing the Fed funds target range to 3.00%–3.25%. Policymakers’ median estimate of the terminal Fed funds rate also increased sharply from 3.8% to 4.6%. Taken together, these two changes highlight the Fed’s concerns about inflation and their […]

September 2022