AIQ

The expected policies of a Republican administration in the US bring added uncertainty to the global growth cycle. Steve Ryder and Daniel Bright examine the probable impacts of a world with more tariffs and political strains.

From navigating market crashes to embracing ESG and technology, Adrian Poole and Gregor Bamert reveal how 40 years of real estate debt investing have moulded Aviva Investors’ strategy – and what it takes to stay ahead in a rapidly changing market.

This month, we explore how US Treasuries are taking a breath, why 2025 could be the year of carry for high yield, what increasing dispersion means for emerging markets, and how surging M&A activity could affect investment-grade bonds.

Our new series shares insights from our sector hub discussions to delve into the trends shaping global equity markets. In the first instalment, Harsharan Mann, consumer sector hub lead, explains what investors should look out for in the sector.

Bond markets are jumpy once again following recent political developments. Rising deficits and renewed inflation risk mean bond market volatility, and with it the search for alternative sources of portfolio diversification, looks to be here to stay.

Creating sustainable transport solutions is vital to meet net-zero pledges, but progress has been patchy. To encourage mobilisation across value chains, we brought together a range of sector experts to identify key blockers and potential solutions.

From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.

Investors should consider EMD hard currency for a long-term strategic allocation within fixed income portfolios to boost portfolio returns, rather than just a short-term tactical play.

Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.

This month, our fixed-income investment teams discuss US elections, IMF meetings, US versus European high yield, managing declining rates for cash, and what the future might hold in store for gilts.

In our latest private markets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.

A growing number of investors are turning to alternatives to boost portfolio diversification, with the events of 2022 still fresh in their mind. In this article we look at why increased uncertainty over the future path of the stock-bond correlation, means this trend may persist.

Hong Kong’s new risk-based capital framework is reshaping the insurance landscape, pushing insurers to rethink their balance sheet strategies and liquidity management. In this article, Alastair Sewell discusses the evolving asset allocation trends and the opportunities insurers face to enhance capital efficiency and long-term growth.

Annual general meetings (AGMs) are an opportunity for responsible investors to share their priorities with companies and express their views on key elements of strategy and governance. Our Stewardship team reviews our 2024 AGM engagement and voting activity.

Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.

In this article, we explore why measuring and continually monitoring geopolitical risks is essential for investors in EM debt.

Our new series shares insights from our sector hub discussions to delve into the trends shaping global equity markets. In the first instalment, Harsharan Mann, consumer sector hub lead, explains what investors should look out for in the sector.

Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.

Volatility returned to markets in the third quarter of the year. While the short-term drivers are not unduly worrying, Sunil Krishnan argues multi-asset investors will need to be watchful over the medium term.

In this article, we look at four megatrends that are likely to transform companies and markets over the coming years, and how they might create opportunities for equity investors.

Large tech firms such as Meta have announced they will pay dividends for the first time in 2024, illustrating the opportunities equity income investors can find beyond “traditional” dividend-paying stocks.

Soaring technology share prices have driven US stock market concentration to unprecedented levels and pushed the US market to a record premium relative to other markets. While both trends could persist, investors need to be aware of the implications, argues Joao Toniato.

Pest control has become a growing priority for city residents and authorities all year round, as rising temperatures and other factors boost the populations of many pest species. But in creating adaptation solutions, the sector could also represent a long-term investment opportunity.

Investors rely on benchmarks for data – but benchmarks can also represent investment opportunities in themselves. So how can we identify companies whose benchmarks are likely to have staying power?

Our investment teams explain why buoyant US consumer spending will have to weaken eventually. That could pose problems for debt-laden consumer-facing companies.

The managers of the AIMS Target Return strategy explain why the prospects for a range of asset classes suddenly look much brighter.

The US and China continue to trade blows as each side looks to limit the other’s access to vital products. With industrial policies also making a comeback, companies are having to navigate a rapidly changing business environment. We look at the key implications for investors.  

Issues around US tech, China, US Treasuries and Japanese monetary policy have hit the headlines in recent weeks. Sunil Krishnan explains how taking a long-term view can help multi-asset investors cut through the noise.

Rapid changes in the global economy could tip some sectors into low-carbon phases faster than incumbents expect, with important investment implications.

Dividends proved resilient in the first half of 2023. Richard Saldanha considers what the rest of the year might have in store for income investors.

Network effects can boost a company’s growth and build durability – when combined with other strengths, argues Francois de Bruin.

We take a visual approach to explain what’s happening with the US debt ceiling, LVMH and gold.

The expected policies of a Republican administration in the US bring added uncertainty to the global growth cycle. Steve Ryder and Daniel Bright examine the probable impacts of a world with more tariffs and political strains.

From navigating market crashes to embracing ESG and technology, Adrian Poole and Gregor Bamert reveal how 40 years of real estate debt investing have moulded Aviva Investors’ strategy – and what it takes to stay ahead in a rapidly changing market.

This month, we explore how US Treasuries are taking a breath, why 2025 could be the year of carry for high yield, what increasing dispersion means for emerging markets, and how surging M&A activity could affect investment-grade bonds.

Investors should consider EMD hard currency for a long-term strategic allocation within fixed income portfolios to boost portfolio returns, rather than just a short-term tactical play.

This month, our fixed-income investment teams discuss US elections, IMF meetings, US versus European high yield, managing declining rates for cash, and what the future might hold in store for gilts.

In this article, we explore why measuring and continually monitoring geopolitical risks is essential for investors in EM debt.

In our October edition of Bond Voyage, our fixed-income teams reflect on US elections, US rates, France’s slide towards the periphery of EU issuers, and ESG considerations in Asia.

Volatility returned to markets in the third quarter of the year. While the short-term drivers are not unduly worrying, Sunil Krishnan argues multi-asset investors will need to be watchful over the medium term.

This month, we discuss the books that inspired our investment teams over the summer.

In this article, we explore what’s behind emerging markets’ impressive performance in the face of global economic volatility, and investigate how EM debt investors can take advantage.

Securitisation performs a vital role in capital markets and asset-backed securities have historically been a core holding for insurance companies. This article revisits the investment thesis for ABS and explores why the stage may be set for something of a renaissance. 

In this summer edition of Bond Voyage, we discuss topical themes in liquidity, emerging-market debt, investment-grade credit and global sovereign bonds.

Emerging markets have remained robust amid the economic and political uncertainties of 2024, but active management will be important if debt investors are to identify standout performers over the coming months.

Credit markets have had a comparatively easy ride so far in 2024, and investment-grade corporate spreads are now at some of their tightest levels for a long time. But investors must guard against complacency.

In the third part of our liquidity optimisation series, we look at how bespoke liquidity portfolios that take into account the interplay between different assets can suit the needs of insurers.

With the focus shifting from interest rate cuts to the likelihood of rates staying higher for longer, Steve Ryder and Daniel Bright assess the possible outcomes and implications of higher rates and monetary policy divergence in debt markets.

Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.

This month, our fixed-income investment teams discuss US elections, IMF meetings, US versus European high yield, managing declining rates for cash, and what the future might hold in store for gilts.

Securitisation performs a vital role in capital markets and asset-backed securities have historically been a core holding for insurance companies. This article revisits the investment thesis for ABS and explores why the stage may be set for something of a renaissance. 

In the third part of our liquidity optimisation series, we look at how bespoke liquidity portfolios that take into account the interplay between different assets can suit the needs of insurers.

The importance of holding liquidity is well understood by large institutions. But how much is enough? In the first part of our new article series on liquidity optimisation, Alastair Sewell investigates the key considerations for different investor types.

The Financial Conduct Authority has proposed material changes to money market funds. We look into the implications for investors.

Alastair Sewell answers the seven key questions on the minds of liquidity investors heading into 2024.

With interest rates set to remain higher for longer and inflation gradually falling, money market funds can offer investors a way to access positive real yields on cash, says Alastair Sewell.

After the European Commission released its long-awaited assessment report on European money market fund regulation, Alastair Sewell discusses the main implications for investors.

Members of Aviva Investors’ liquidity team explain why rising global interest rates and problems in the US banking sector are fuelling demand for money market funds.

Our liquidity team give their take on what the challenging market environment means for positioning in 2023.

In this Q&A, Alastair Sewell explains why investors need to urgently rethink their approaches to collateral cash management.

After the volatility that rocked UK markets in recent weeks, Alastair Sewell reflects on how this impacted money market funds and what’s next.

European regulators are set to introduce significant reforms to money market funds. Investors need to be ready, says Alastair Sewell.

From navigating market crashes to embracing ESG and technology, Adrian Poole and Gregor Bamert reveal how 40 years of real estate debt investing have moulded Aviva Investors’ strategy – and what it takes to stay ahead in a rapidly changing market.

In our latest private markets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.

Gregor Bamert, Sima Kotecha and Nick Solomon discuss the recovery in real estate debt markets in 2024 and the opportunities emerging.

While there are obstacles to overcome, the coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, says Darryl Murphy.

In our latest real assets deep dive, our research team explains how our data on illiquidity premia indicates the benefits of a multi-asset approach to private debt investing. 

Our real assets research team drills into proprietary data to compare risk and return across sectors.

David Hedalen and Jonathan Bayfield from our real assets research team highlight data that shows real estate markets in the UK and Europe may be on the brink of an important shift.

Do energy-efficient buildings have more pricing power, and what could that mean for those investing in the built environment? We bring together the views of leading capital markets researchers, a valuer and an asset manager for the second part of our deep dive into green premia, analysing the investment implications.

Do greener buildings have more pricing power, and if so, how much? We bring together the views of leading capital markets researchers, a valuer and an asset manager for a two-part deep dive on the latest market dynamics.

High inflation and rising rates hit activity in real estate markets over the past year. But cautious optimism is now returning to the investment landscape in the UK and Europe, say Imogen Ebbs and George Fraser-Harding.

Renos Booth, Isabel Gossling and Kris McPhail from our real estate long income team consider the outlook for long-lease assets after a challenging period for investors.

After a challenging 12 months for real estate debt investors, Gregor Bamert discusses what lies ahead for the market in 2024.

In our latest real assets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.

Jonathan Bayfield examines the fundamentals of this asset class, as well as the opportunities and risks for real-estate investors.

Successful real asset investing requires acceptance of asset managers’ practices and procedures from a variety of stakeholders. We explore what this means for managers, their clients and investment outcomes.

Infrastructure demonstrated characteristic resilience in 2023 in the face of significant macroeconomic headwinds. Darryl Murphy from our infrastructure team explains why he expects current themes to persist in 2024.

Creating sustainable transport solutions is vital to meet net-zero pledges, but progress has been patchy. To encourage mobilisation across value chains, we brought together a range of sector experts to identify key blockers and potential solutions.

From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.

Aviva Investors fund managers Edward Hutchings, Liam Spillane and Max Burns offer their initial thoughts on what the US election means for financial markets.

Annual general meetings (AGMs) are an opportunity for responsible investors to share their priorities with companies and express their views on key elements of strategy and governance. Our Stewardship team reviews our 2024 AGM engagement and voting activity.

Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.

From direct investments and engagement with companies to dialogue with governments and regulators, we believe stewardship efforts can deliver better outcomes for clients.

Aviva Investors’ Multi-Strategy Target Return managers talk about why their strategy has survived where others have failed, the lessons they have learned and why enhancements to their investment process in 2018 have been paying dividends.

Our in-depth Roadmap for the UK’s journey towards a low-carbon economy contains policy recommendations to unlock private investment in the transition.

National transition plans can give investors support, confidence and direction to accelerate the flow of finance to bring about a low-carbon economy. As such, they should be seen as a strategic opportunity.

Sustainable investing, and the supposed trade-offs involved, have been a topic of heated debate. But trade-offs are a fundamental part of all types of investment; the key is to be clear about your objectives, as Mirza Baig explains.

Transition plans, including from governments in response to the Global Stocktake, will be crucial to bring about the shift to a low-emissions, climate-resilient world. Markets need clear implementation signals to align capital with the goals of the Paris Agreement. Our in-depth report calls for the creation of a transition-plan ecosystem connecting all levels of the global economy.

Investing to create a more sustainable, stable and prosperous world should be a core part of the purpose of any responsible asset manager. Louise Piffaut reviews our recent engagement activity designed to hold investee companies to account.

The US and China continue to trade blows as each side looks to limit the other’s access to vital products. With industrial policies also making a comeback, companies are having to navigate a rapidly changing business environment. We look at the key implications for investors.  

Disabled employees continue to face a variety of hurdles to cope with in addition to their day job. We look at how employers can help remove those barriers to allow everyone to thrive.

In the 17th and 18th centuries, academics at the University of Edinburgh helped drive the Industrial Revolution. Today, they are connecting with businesses to tackle the climate emergency. Words by Miles Costello.

Healthcare is a dynamic industry, but patent expiries from 2025 and drug-price reform in the US pose challenges. Innovation will be key for continued success, as experts from our credit, equity and ESG teams explain.

From navigating market crashes to embracing ESG and technology, Adrian Poole and Gregor Bamert reveal how 40 years of real estate debt investing have moulded Aviva Investors’ strategy – and what it takes to stay ahead in a rapidly changing market.

Creating sustainable transport solutions is vital to meet net-zero pledges, but progress has been patchy. To encourage mobilisation across value chains, we brought together a range of sector experts to identify key blockers and potential solutions.

From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.

Annual general meetings (AGMs) are an opportunity for responsible investors to share their priorities with companies and express their views on key elements of strategy and governance. Our Stewardship team reviews our 2024 AGM engagement and voting activity.

Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.

From direct investments and engagement with companies to dialogue with governments and regulators, we believe stewardship efforts can deliver better outcomes for clients.

While there are obstacles to overcome, the coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, says Darryl Murphy.

Our in-depth Roadmap for the UK’s journey towards a low-carbon economy contains policy recommendations to unlock private investment in the transition.

Do energy-efficient buildings have more pricing power, and what could that mean for those investing in the built environment? We bring together the views of leading capital markets researchers, a valuer and an asset manager for the second part of our deep dive into green premia, analysing the investment implications.

Do greener buildings have more pricing power, and if so, how much? We bring together the views of leading capital markets researchers, a valuer and an asset manager for a two-part deep dive on the latest market dynamics.

National transition plans can give investors support, confidence and direction to accelerate the flow of finance to bring about a low-carbon economy. As such, they should be seen as a strategic opportunity.

Sustainable investing, and the supposed trade-offs involved, have been a topic of heated debate. But trade-offs are a fundamental part of all types of investment; the key is to be clear about your objectives, as Mirza Baig explains.

Green bond funds and Paris-aligned benchmarks are aimed at climate-focused credit investors who also want the simplicity of passive investing. But while they decarbonise portfolios, they exclude the companies in the real economy that need to transition if the world is to meet the Paris Agreement goals. This is why an active approach can be beneficial.

Pest control has become a growing priority for city residents and authorities all year round, as rising temperatures and other factors boost the populations of many pest species. But in creating adaptation solutions, the sector could also represent a long-term investment opportunity.

For the first time in three years, interest rates should no longer be a headwind for credit markets in 2024, but other forms of uncertainty may affect climate-aware bond investors. Our credit experts discuss the key themes they expect to play out over the coming months.

Successful real asset investing requires acceptance of asset managers’ practices and procedures from a variety of stakeholders. We explore what this means for managers, their clients and investment outcomes.