The Forces at the Top of the Institutional Investor Agenda

Three Key Dynamics Investors Are Concerned About

This year has been one of the worst for financial markets in decades. Some of the economic headwinds may have a limited time span. Other considerations – such as sustainability and capital allocation methods – are likely to persist. Below is a selection of insights into these three dynamics: economic headwinds, sustainability and capital allocation.

Economic Headwinds

Fishtailing into the Next Recession (MetLife IM)

Each recession is different. Investors can learn from how financial markets behaved during past recessionary periods to inform their allocations today.

Inflation Fears Ease, But Recession Concerns Intensify (RBC GAM)

For compliance reasons, this paper is only accessible in the United States and Canada

Inflation has been one of the key reasons for market volatility this year. However, there are signs that inflationary forces may be peaking.

High Inflation and Rising Rates? Think Smaller Companies (T. Rowe Price)

For compliance reasons, this paper is only accessible in certain geographies

Smaller companies seem more able to fight off inflationary forces than larger ventures. Investors should not ignore this part of the equity market.

Inflation, Recession and Stock Market Reflections (BlackRock)

For compliance reasons, this paper is only accessible in the United States

Investors continue with their efforts to price in the risks of higher inflation or deep recession as a result of monetary policy tightening.

Credit Insights: Navigating Recession Risks (Insight Investment)

For compliance reasons, this paper is only accessible in the United States and Canada

Considering the growing list of economic headwinds, the risk of recession cannot be ruled out – even in the U.S. which has been doing better than other economies.

Sustainability

Will the Stars Align for a More Orderly Transition? (MacKay Shields)

The IRA legislation has put the U.S. back on a credible footing in the fight against climate change. How should investors see the impact of the IRA?

Energy Transition Factbook 2022 (BloombergNEF)

Energy Transition Factbook presents the slow but steady pace of change in the mix of energy production and consumption that powers the global economy.

Investing In the Circular Economy: We Are All Plastic Now (Candriam)

For compliance reasons, this paper is only accessible in certain geographies

The circular economy is no longer a theoretical concept. It is becoming the new practical model for economic operations across the world.

Climate vs. Investment Objectives for Value Strategies (Research Affiliates)

Fighting climate change and delivering on investment goals should not be two different aims of the asset management industry – but one and the same target.

Capital Allocation

Wanted: A Better Definition of Thematic Investing (Wellington Management)

Thematic investing needs a rethink: what is the most efficient way for investors to think about thematic investing in today's fast changing world?

Portfolio Construction: Principles Inform Possibilities (Vanguard)

For compliance reasons, this paper is only accessible in the United States

Constructing portfolios to meet the diverse investor needs requires strong principles that can evolve as times change.

UCITS Thematic ETF Report: August 2022 (Global X ETFs)

For compliance reasons, this paper is only accessible in the UK & Europe

At the end of August 2022, UCITS thematic ETFs represented 2.5% of the UCITS ETF industry’s $1.4 trillion total AUM. This report looks at the underlying trends behind this sector.

Podcast: Inside hedge fund allocation (Capital Allocators)

Hedge funds can seem secretive – so getting an insight into how hedge fund managers make allocation decisions can be invaluable.

Thematic Investing in Mutual Funds (2022)

Understanding the investment skills of professional money managers is an enduring topic in financial economics. Do mutual fund managers gain an edge through thematic investment?