Asset Allocation

Asset owners representing 3.7 trillion dollars in capital sent a clear message to their asset managers at the end of January: stay committed to net zero. Demand for climate strategies among institutional investors in Europe remains firmly intact.

An Irish long-term investment fund has suspended redemptions after investor withdrawals exceeded its limits, marking the first gating event in the European market and exposing the structural tension at the heart of the product.

For decades, investors have been told to balance risk with a simple formula: the 60/40 split between stocks and bonds. New research from Yale argues that approach is fundamentally flawed, leaving many savers too conservatively positioned to maximise long-term wealth.

RMB bonds may offer an unexpected shelter in a prolonged oil shock, as global fixed income markets struggle to absorb a renewed inflation impulse, according to Allianz Global Investors’ Jenny Zeng.

Global shipping is slowing as surging fuel costs and mounting risks in the Persian Gulf begin to strain the industry’s finances, forcing companies to cut speeds, seek emergency credit and rethink whether voyages are still viable.

European banks have little direct exposure to the Middle East, says European credit rating agency Scope. However, as tensions in the region threaten to push up energy prices and slow economic growth, the risks for lenders may emerge elsewhere: in the balance sheets of the companies they finance.

Machine learning is increasingly used to identify inefficiencies in small- and midcap markets. But as more investors adopt the same technology, it could make generating alpha more difficult.

The war between the United States, Israel and Iran is casting a shadow over a crucial week for central banks. The US Federal Reserve meets on Wednesday, followed a day later by the European Central Bank.

Listed private markets managers are under pressure in recent weeks as investors question the resilience of evergreen funds and worry about technology exposure in private credit portfolios. Shares across the sector have slid after several retail-focused vehicles limited withdrawals, raising fresh doubts about whether funds that promise periodic liquidity can withstand market stress. Partners Group says those fears are misplaced.

Investors are increasingly focused on what the war with Iran could mean for the global economy. The surge in oil prices is reviving fears of stagflation, as higher energy costs threaten to push inflation higher while economic growth comes under pressure.