Insights

Seek to provide long-term returns above a cash rate, while reducing volatility and downside risk, even in times of credit market stress. Focus is usually on the attraction of benefitting from taking credit risk while minimising unwanted interest rate and currency risk. Richard Ryan explains why adopting a multi-asset credit approach offers attractions to long-term investors.

Economic growth in the Eurozone softened in 2018, but macro tailwinds remain strong, such as Japan and the European Union agreeing to remove tariffs on goods and services. This European real estate market outlook looks at the opportunities emerging across the continent and what we believe will be important to drive returns going forward.

Our multi-asset team focuses on delivering sustainable investment outcomes to help pension schemes meet their varying needs for diversified growth, volatility management and income generation.

Asset-backed securities (ABS) remain attractive to investors and it is not only because yield spreads have increased. UK consumer risk offers value as Brexit downsides appear to be overpriced. Resilience of deals appears strong, with robust documentation helping to reduce impairment risks, while underlying collateral defaults remain low.

European private debt continued to attract significant investor interest in 2018, while fundraising was more muted, partly due to high levels of dry powder. Looking in less competed and emerging areas of private debt is more likely to enable sourcing value opportunities.