Approfondimenti

The plates under the global economy are shifting. Advances in technology, population change, decarbonisation and geopolitical pressures are both catalysing new industries and rendering some assets obsolete.

In his annual outlook, Global Head of Investment Strategy & Research Rob Martin considers long-term performance as the combination of structural tailwinds and cyclical opportunities.

As inflation and growth dynamics vie with political risk for investor attention next year, we anticipate fresh volatility – and opportunity – in this higher-rate environment.

All defined benefit (DB) schemes still need to pay pensions as they fall due. What’s the right balance between cashflow-driven and ‘barbell’ investment approaches? And how should schemes’ strategies differ given low-dependency or buyout objectives?

How cuts to bank lending could grow the asset class

For how long can the developed economy withstand the pain of higher interest rates? And how will that impact the fixed income arena?

We remain cautious on near-term performance at the all-property level, given persistent upward pressure on yields, but some of this pressure has reduced as inflation has decelerated. UK real estate appears closer to the end of its re-pricing journey than in other geographies

In their latest investment outlook, our Asset Allocation team discuss the ‘unstable table’ on which US equity market gains have been built in the year to date – and how it’s affecting their positioning.

As the dust begins to settle following a turbulent 2022 and the recent banking crisis, we reflect on the varying dynamics of private credit markets, their differentiation and their role in investor portfolios

As the dust begins to settle following a turbulent 2022 and the recent banking crisis, we reflect on the varying dynamics of private credit markets, their differentiation and their role in investor portfolios

In their latest investment outlook, our Asset Allocation team weigh up the macro and market impact of stress in the banking sector – and how it’s affecting their positioning.

Net Zero 2050: More affordable than ever, if we act now

LGIM is committed to creating a better future through responsible investing.

After a challenging year, is it all doom and gloom? The end of 2022 presents a forbidding picture to investors and policymakers alike. How much of what we are seeing is new, and what continuities are there that could create opportunities?

How will government intervention to cap the profits of renewable energy companies affect the dynamics of investing? And will rising capex costs add additional pressure?

The needs-based occupier demand for housing, particularly in the UK, with its fundamental imbalance of demand and supply, allows for resilient and potentially growing occupier demand despite slowing UK growth.

The more policymakers worry about inflation, the less investors need to. We’re willing to buy into further market weakness – and have done so in the past weeks. But we’re also likely to dial down our stance should the prospects of a recession grow.

In our market outlook at the start of the year, we noted that investors should prepare for the unexpected, since we believed the road ahead was unlikely to be smooth. We were correct in our thinking, but not in the way we envisaged.

In our 2022 Solutions Outlook, members of the team share their insights on what we believe to be some of the key themes for the year ahead. From CDI and credit markets to inflation, green gilts and equity protection strategies, we discuss some of the most important topics for DB pension schemes this year.

We’ve put together a four-step checklist with useful tips and guidelines around the new reporting requirements and obligations around pension consolidation.

Expect profound changes in 2022 and beyond that will create both risks and opportunities for investors.

In fixed income markets, it’s usually when things begin to ‘feel’ better that you run into maximum optimism. But wouldn’t it be ironic if the long-awaited reopening of economies and societies turned out to be a difficult period for markets?

Find out more about our on-going trustee knowledge programme and educational videos.

As demand for investments in the private market continues to grow, there is an ever-increasing interest in considering environmental, social and governance (ESG) factors to promote greater transparency, for better risk management and to aim to deliver long-term value.

Five years on from Freedom and Choice, the New Romantic generation is dancing towards a decidedly unromantic retirement.

Despite the ongoing challenges, we see next year as a time for healing – for the economy, environment and society.

Are savers taking their pension’s pulse regularly enough? We examine a health check that we believe can help investors spend sustainably.

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?

Q3 Outlook: Taking stock

Since the Freedom and Choice pension reforms, we’ve moved from a world where most UK retirees bought an annuity, to one where many individuals choose income drawdown. In doing so, they not only bear the risk of changes in the value of their pension but also the uncertainty around how long they will live. This uncertainty over future lifespans is known as ‘longevity risk’.

Harnessing multiple return sources

In this outlook, teams from across LGIM examine the opportunities and risks with which investors are presented in this context.

Nervy investors are eyeing top-heavy market-cap indices with suspicion. But how can they use factors to navigate the trade-off between diversification and concentration risk?

Five pointers to help you understand what we at LGIM are doing to support your pension governance strategy

We look at whether TIPS (Treasury Inflation Protected Securities) deserve a greater role within UK defined benefit (DB) schemes’ portfolios.

Running RPI-linked assets versus CPI-linked liabilities can pose material risks. But as pension schemes become better hedged – and market pricing becomes more appealing – they may seek to explore CPI-linked assets in greater detail.

Managing transfers out of DB pension schemes.

Cashflow matching strategies are customised investment solutions, designed to enable clients such as pension schemes or insurance companies to meet their liabilities. We believe that emerging market fixed income has an important role to play in designing cashflow matching strategies.

The global risk asset rally continued in early 2017, with emerging market investments the star performers.

There are so many elements to consider when building factor-based solutions it can be overwhelming. We’ve highlighted two case studies of investors tackling these challenges.

The falls over the past two years in high yield and emerging market debt (‘alternative credit’) credit spreads,1 along with indications of late-cycle behaviour in the US, has led some investors to be nervous about allocating to these areas. But should pension schemes reconsider?

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, causing untold human suffering and economic damage.

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.

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.

Can cyclical tailwinds paper over the structural cracks? And what’s the outlook for global trade, China and equity investors?

While trade tensions have escalated in recent months, we believe the case for emerging markets remains compelling - if investors know where to look.

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.

Looking into 2018, US policies will remain one of the biggest focal points for EM assets, even if it has felt like ‘waiting for Godot’.

Companies that have seen their share price depreciate sharply in the face of self-inflicted wounds, structural challenges, or cyclical headwinds, represent potential ‘turnaround stories’. In this article we look at the attraction of investing in these businesses, and evaluate the risks or opportunities they present.

We expect another strong year for growth with the global economy firing on almost all cylinders. But the market has priced in this optimism, implying greater vulnerability for disappointment. We expect the low interest rate environment to continue into 2018. While interest rates can drift up, we do not think this is the beginning of the end for the bond markets.

The diverse sovereign and corporate debt spectrum of such a wide group of emerging market countries highlights the need for investors to scrutinise their individual debt profiles more closely

A weak pound and rising inflation, set against a tight labour market and loose credit conditions, should keep the UK out of recession.

After more than a century of incremental change, technological trends and consumer demands around road vehicles are converging.

Pay-as-you-go pension and healthcare schemes are under increasing pressure from ageing populations.

Effective cashflow management for DB pension schemes.

What is a fallen angel? In theological terms, a fallen angel is one who has rebelled and been exiled from heaven.

Investors currently buying UK government bonds are doing so in the knowledge that they are accepting a yield which is lower than the rate of inflation, i.e. the real yield.

In a surprising result, the general election has ended in a hung parliament. At the time of writing, the Conservative party has won approximately 318 seats.

Our forecast of a long-term structural shift away from coal could have dramatic implications for investors.

The logistics industry is seeing increased investment, driven by technology trends including automation and smart manufacturing.

The DC pensions industry has moved forward since auto-enrolment was introduced, with many more saving into a pension. This is great news, but challenges remain. How do we help individuals see the value in saving more for a future that seems a long way off?