Sustainable infrastructure is proving an attractive asset class for long-term investors with an eye on the green transition. According to figures from the Bloomberg New Energy Finance Renewable Energy Investment Tracker, in the first six months of 2023, investors channelled USD358 billion of new capital to renewable energy projects.
The short-term interests of asset managers may be trumping the long-term interests of their institutional investor clients when it comes to stewardship, which has lead UK pension funds to call for urgent action.
Bucking the global trend away from impact startups, French business school EDHEC has partnered with private equity firm Ring Capital to drive capital towards entrepreneurial projects that drive social and environmental change.
ETF providers continue to overlook stewardship responsibilities with proxy voting “muddled and concentrated”, new research reveals.
It is tough out there for venture capitalists as persistently high interest rates dog a sector reliant on long-term leverage, and this difficult environment looks set to last.
Climate change could wipe out the value of 50 per cent of the value of some institutional investors’ infrastructure portfolios before 2050, yet these risks are neither fully understood nor properly priced in, according to the EDHEC Infrastructure and Private Assets Institute.
British Airways, BAE Systems, Royal Mail, Centrica, National Grid and Kier are among the big-name UK organisations that have opted for the outsourced CIO model to oversee their multi-billion-pound pension arrangements, and with the market expected to grow to USD3 trillion by end of 2026, we can expect many more asset owners to follow suit.
Alternative assets funds under are predicted to reach as much as USD25.3 trillion worldwide by 2027 representing a compound annual growth rate of 7 per cent since 2018, according to figures from PwC.
Companies and their investors face a new disclosure regime to support global efforts to protect nature and biodiversity.
It has been nearly a year since then Prime Minister Liz Truss’ ‘mini-Budget’ caused a collapse in gilt prices which wiped GBP500 million wiped from the UK’s defined benefit (DB) pension schemes and caused a crisis in confidence in the widespread use of liability-driven investment (LDI) strategies.
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