| Regulatory bonfire to encourage investors The government secured GBP60 billion in pledges at the International Investment Summit this week, of which more than half a billion pounds is earmarked for impact funds.
Schroders, Man Group and Resonance are named as the asset managers behind GBP550 million that will support UK housing and which forms part of a GBP1.2 billion target to be raised "in coming years".
Claiming the investment as a major success, Culture Secretary Lisa Nandy said she wants to make the UK "a world leading centre of excellence on the impact economy" and will work with the sector "to unleash its full potential for our country".
But given the Local Government Association (LGA) has warned that councils in England face a funding gap of GBP2.3 billion in 2025-26 alone, the GBP550 million looks to be relatively small change.
The government was also keen to highlight the GBP63 billion it secured in financing to support renewable energy, infrastructure and technology projects.
But again, given the UK needs an estimated GBP50 billion per year by 2030 to achieve its net zero ambitions alone, GBP63 billion to cover everything from solar power to data centres and overhauling housing stock looks a little light.
Perhaps the government could focus on tapping up global insurers which, for the third year running, are planning to increase investment in private markets.
According to BlackRock’s annual survey of insurers representing nearly USD27 trillion in assets under management, 91 per cent of all respondents say they will boost allocations to private markets within the next two years.
While insurers were far from absent from the Summit, they featured less prominently than might have been expected.
However, the government’s bonfire of regulations could prove the incentive insurers need, with Amanda Blanc, CEO of Aviva, telling CNBC that she welcomes the government’s efforts to reassure businesses, adding that she expects to see further loosening of regulatory requirements.
Turning to the US, where the election race is tightening, and we bring you views from Arun Sai, Senior Multi Asset Strategist, Pictet Asset Management, who says the impact on markets – so far – have been minimal.
However, he warns that as polling day draws near, investors should begin to assess the potential impacts on specific assets.
For example, a Trump presidency could benefit US equities but hurt government bonds, while a Harris victory might favour emerging market assets and affect the US dollar negatively.
Yet it would take a brave investor to attempt to structure their portfolio based on the outcome of an election that so few are willing to call.
Ultimately this is not an electoral battle fought on economics, and sweeping policy changes seem unlikely, no matter who wins.
If your service provider stands out from the crowd, why not nominate them for the Institutional Asset Manager Service Provider Awards 2024.
You can register your vote here.
We are also pleased to bring you a discount for a London-based responsible investment conference. This code, ETF20, will gain you a 20 per cent discount on tickets to attend RAO Global’s symposium on 21st November in London.
Gill Wadsworth, Editor, Institutional Asset Manager
For live updates please follow us on Twitter and LinkedIn.
|
