Institutional Asset Manager Newsletter

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NEWSLETTER | 30 Oct 2020

Social and financial welfare in focus as paradigm shift takes place in finance industry

Governments across Europe are hand-wringing over whether to impose further national lockdowns, as France and Germany both opt for tighter restrictions to curb a second wave of coronavirus cases.

Pressure is now mounting on the UK, which has suffered the highest number of coronavirus deaths in Europe, to follow suit. Prime Minister Boris Johnson has so far resisted a second national lockdown over concerns about the financial strain that would be caused by shuttering the economy for a second time in six months, with Housing Minister Robert Jenrick saying it would do “more harm than good”.

Aligning social and financial welfare is at the heart of Big Society Capital’s purpose, a firm that has helped the UK’s social impact investing market grow six-fold in the eight years since it was founded.

This is evidence of a structural change taking place in finance, says its chairman Sir Harvey McGrath, who believes that it is crucial to unlock private capital to tackle big issues such as homelessness, climate change, and worldwide pandemics.

Scientists have also discovered that taking steps to protect the environment could help prevent future pandemics, with habitat destruction identified by The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services as a key factor in helping viruses spread from wildlife to humans.

So far, almost all of the largest hubs for green finance have been concentrated within Western Europe, as a biannual index showed that Amsterdam, Zurich, and London are leading the way towards financing a sustainable future.

In the US, candidates Donald Trump and Democratic rival Joe Biden are busy rallying their supporters in the battleground state of Florida ahead of next Tuesday’s US Presidential election. FiveThirtyEight polls put Biden ahead with an 88 per cent chance of victory over Donald Trump.

Fixed income managers say that a Biden victory may help soften the blow to US municipal bond issuers, whose credit ratings are on course for a series of downgrades over the next couple of years.

Biden’s talk of federal aid, higher taxes, and a USD2 trillion plan to green the economy, could all help local governments to reduce their budget deficits, which are expected to hit USD445 billion next year.

maddy taylor signature.png

Madeleine Taylor
Editor, Institutional Asset Manager

maddy.taylor@globalfundmedia.com

“A better way to invest”: Big Society Capital’s Sir Harvey McGrath says structural change is coming to the asset management industry

Fri | 30 Oct 2020, 11:00

At a time when governments around the world are burning through billions attempting to rescue citizens from the financial pain of coronavirus, which has created severe crises in healthcare and employment, Big Society Capital says there is a crucial opportunity to use private money to fund social causes.

Fri | 30 Oct 2020, 11:00

Municipal bond issuers in the US are likely to face credit rating downgrades over the next several quarters, according to fixed income manager Breckinridge Capital Advisors, who says their severity may depend on the outcome of the US election.

Fri | 30 Oct 2020, 11:00

Increased automation of the middle-office, and the use of secure cloud-based platforms should be key priorities for firms amid an increasingly challenging post-trade operations environment exacerbated by this year’s unprecedented market volatility, according to a new report.

Fri | 30 Oct 2020, 11:00

The Principles for Responsible Investment (PRI) has launched three new guides for asset owners, outlining how they can ensure environmental, social and governance (ESG) considerations remain at the heart of their relationships with investment managers.

Fri | 30 Oct 2020, 11:00

State Street Corporation (NYSE:STT) is celebrating the 20th anniversary of its Fund Connect platform – a global trading, analytics and cash management tool with access to more than 400 money market funds from leading providers.

Clarity AI raises USD15m for societal impact portfolio management platform

Fri | 30 Oct 2020, 11:00

Clarity AI announced today that it has closed a USD15 million funding round led by Deutsche Börse AG and co-investor Mundi Ventures.

Fri | 30 Oct 2020, 11:00

Market Alpha Advisors, a financial markets advisory firm that specialises in market structure and financial technology, has partnered with RSM US (RSM), a provider of audit, tax and consulting services focused on the middle market, to provide subject matter expertise and technical services related to the cessation of LIBOR to RSM clients.

Fri | 30 Oct 2020, 11:00

A team of experienced consultants in the financial services space that began working together in 2009 has expanded and relaunched as Endurance Advisory Partners.

Fri | 30 Oct 2020, 11:00

As economies reopened, Canadian DB pensions in the RBC Investor & Treasury Services All Plan Universe weathered the pandemic-induced slowdown and continued the forward momentum from Q2, gaining a median 3.0 per cent in Q3.

Fri | 30 Oct 2020, 11:00

The Association for Digital Asset Markets (ADAM) has appointed Michelle Bond as its new Chief Executive Officer.

Swiss Life Asset Managers appoints Head of International Sales

Fri | 30 Oct 2020, 11:00

Eduardo Illitsch has been appointed as head of international sales at Swiss Life Asset Managers, with responsibility for the international sales teams in London and Frankfurt covering Europe ex-DACH and France, the Middle East and Asia.