Geopolitics and Asset Allocation

The Challenges Continue to Pile Up

Many commentators are now expecting the war in Ukraine to become a protracted affair. MetLife Investment Management and Columbia Threadneedle share their views on the possible impacts of the conflict, on a global scale and on the energy market respectively. On top of these considerations asset allocators are having to factor in a new monetary policy, ongoing inflation, and climate change into their decisions. How best to protect and enhance your portfolio in these times? Read on for our selection of papers…

Russia-Ukraine War's Global Impact (MetLife Investment Management, 2022)

Emerging markets remain behind developed ones in their economic recovery. The ongoing conflict between Russia and Ukraine might have worsened the situation further. MetLife Investment Management offers their take on this complex situation.

Ukraine Invasion Drives Energy Prices Higher (Columbia Threadneedle, Apr 2022)

Russia is a major exporter of oil and natural gas. The war in Ukraine has thus introduced volatility in the global energy markets. Given that the options for supply of cheap fuel are limited, energy prices are expected to continue rising.

2022 Capital Market Assumptions: Q1 update (Invesco)

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

The difference between investing and trading often rests in the outlook of the capital allocator. Investors must think long-term, while traders can focus more on the short run. Here are Invesco's long-term capital allocation assumptions for investors.

Climate Change and Capital Market Assumptions (Wellington Management, 2022)

Climate change represents a risk which should be factored in by investors. Done well, this risk could be turned into opportunities. Wellington Management details how it integrates climate change into its capital allocation assumptions.

Q2 2022 Global Outlook: Navigating the new market regime (BlackRock)

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

So far, 2022 has proved to be an unsettled year for investors. The new market regime, according to BlackRock, is defined by three themes: inflation, central bank policies, and net zero. These topics should inform investors' capital allocation decisions.

Inflation Could Change Everything for Asset Allocations (Lord Abbett, Apr 2022)

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

Lord Abbett reviews the recent interest rate increases and the effects on the U.S. yield curve, suggesting that there could be changes to the long-held correlation between stock and bond returns. For this reason investors may need to rethink their allocation strategy.

A Bright Outlook for U.S. Farmland Returns (Manulife IM, 2022)

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

Farmland can offer investors a method to diversify their portfolios, an income stream, and a potential for capital appreciation. U.S. farmland could offer investors these benefits.

Introducing Illiquid Assets into a Global Multi-Asset Portfolio (Candriam, 2022)

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

Despite the popular belief that illiquidity equals risk, there are also benefits that illiquidity can provide to investors' portfolios, such as to dampen volatility. Candriam highlights how to introduce illiquid assets into a well-constructed portfolio.

New Frontiers: Finding the untapped opportunities in alts (PGIM, 2022)

Alternative investments offer a range of opportunities for investors who have to navigate an increasingly complex market environment. From private debt to real estate, PGIM shows why alternatives should be on institutional investors' radar.

UPCOMING WEBINAR

Webinar 10 May: Energy Independence and Europe’s Energy Transition (LGIM, 2022)

For compliance reasons, this paper is NOT accessible in the United States and Canada

Join LGIM experts as they discuss the risks and opportunities of energy independence for investors looking to gain access to Europe's energy transition. A wide-ranging discussion which will give particular attention to wind, solar, battery storage and hydrogen infrastructure.