20 Mar 2023
15 minutes
The physical impact of climate change already affects the productivity of corporates on a global scale and across sectors – but financial markets do not currently price in the full range or magnitude of these risks. The pace at which corporates embrace and implement transition strategies will determine how fast and prevalent physical risks will rise.
The study by experts from Imperial and Reading, led by Dr Ajay Gambhir, brings to life the extent of physical risk to corporates and the potential scenarios that might follow. This research integrates financial markets with the science of climate change.
Imperial College London are at the forefront of climate finance and the study of natural sciences. Ninety One and Imperial College London have previously partnered a bespoke Climate Risk Education Programme to help our clients meet the challenges presented by climate change.
By focusing allocations on financing real-world emissions reduction and using engagement to encourage net-zero alignment, investors can help to shift the economy toward a credible decarbonisation pathway, while optimising returns for clients and beneficiaries.
Asset owners weigh risks and opportunities of investing for an inclusive energy transition.
Many allocators we speak to understand the 'why' but ask 'how' assets can be mobilised to support the energy transition in emerging markets, while also contributing to return targets.
The world needs $4 trillion a year to reach net zero by 2050, with 25 % of this needed by emerging markets. Nazmeera Moola, Chief Sustainability Officer and Daisy Streatfield, Sustainability Director, discuss how if we are to achieve a real-world transition, investors must finance new infrastructure and industries in emerging markets that will help the transition and provide capital for credible transition paths of today’s high emitters.
How do professional investors and asset management firms use emissions data? And how does sustainability reporting need to evolve to meet the needs of today’s investors? Members of the Ninety One team shared their insights and experiences at a ‘CDP Signatory Day’ in May.
To get to net-zero we have to finance the high emitting sectors and regions from a state of high carbon to a state of low carbon. The path to getting there is not simple or clear. Head of Thematic Equity Tom Nelson and Sustainability Specialist Annika Brouwer discuss the disorderly transition that is underway.
Evidence suggests the transition to a low-carbon economy will be disorderly. By allocating to ‘transition assets’, investors can mitigate some of the disorder, while potentially generating positive outcomes for their portfolios. This paper makes the case for transition investing, and explains how to identify a true ‘transition asset’.
A year on from the launch of our Net Zero Sovereign Index, our EM Debt team explains how it now measures alignment with Paris climate goals and what that means for investors.
The oddly named Inflation Reduction Act introduces a raft of far-reaching measures that will support the energy industry in the US for at least a decade to come. This has positive implications for investors.
Efforts to tackle climate change are driving powerful trends in markets for many natural resources, from metals to fossil fuels – and in the equities of companies that produce them. That’s creating new opportunities for investors.
As the basis of the world’s energy supply shifts from fossil fuels to mainly metal-based technologies, we face upheaval in many commodity markets. There are opportunities for investors, but also potential pitfalls.
The net-zero transition imposes several challenges on asset allocators – not least dealing with inconsistent carbon reporting by asset managers, as well as the difficulty of communicating decarbonisation progress (or otherwise) in a way that is useful for end-investors.
The SpaceX IPO is just the opening act. With Anthropic and OpenAI now both filing confidentially for their own listings, Ninety One analyst Anton du Plooy considers what a wave of trillion-dollar AI debuts means for markets, and for the investors who have to decide what to do about them.
Financial markets were broadly positive in May. Global equities advanced, led by technology stocks as AI enthusiasm remained a key driver of performance. Bond markets were more volatile, with a sharp mid-month sell-off driven by inflation concerns and uncertainty surrounding the US-Iran conflict. However, sentiment improved later in the month as hopes of a US-Iran deal increased, helping oil prices to fall sharply and supporting both sovereign bonds and credit markets. Commodities were mixed overall, with industrial metals advancing while Brent crude recorded its largest monthly decline since the pandemic.
As war in the Middle East adds to a series of global supply shocks, emerging markets are showing growing resilience in an increasingly multipolar world.
Natural resources equities can mitigate vulnerability to equity market-regime shifts. The asset class has distinct performance drivers that may complement existing equity allocations.
Amid a volatile geopolitical backdrop, risks relating to the US private market and AI disruption have driven big moves in credit markets this year. Co-head of Developed Market Credit, Justin Jewell, and Investment Director, Jared Cook, discuss these themes and consider how credit investors can navigate them.
Frontier markets are increasingly relevant for today’s portfolios, but expertise and conviction are vital for successful investment outcomes.
A research trip to China has reinforced that the energy transition and intelligent economy are accelerating – and investable
Our EM Debt team shares its latest outlook and positioning across the investment universe.
The decarbonisation investment universe is well-stocked with ‘heavy-asset, low-obsolescence’ companies that are well-placed to benefit from an investment supercycle.
Investors typically access natural resources through either commodities or equities, but the outcomes can look very different over time. This paper explores why natural resources equities have historically provided a broader and more resilient source of returns.
Financial markets surged in April, defying geopolitical tensions. Global equities delivered their strongest gain since late 2020, led by technology and AI-linked stocks, even as the US-Iran conflict kept oil prices elevated and complicated the inflation outlook. Government bonds weakened as higher energy prices pushed out rate cut expectations, while credit markets performed well in the risk-on environment. Commodities were mixed: industrial metals advanced, oil was volatile, and gold was flat. Investor sentiment improved as markets looked past near-term risks and focused on resilient earnings and structural growth themes.
Ninety One’s Capital Market Assumptions framework focuses on the key drivers of long-term performance. We do this to better understand possible future returns, enriching discussions with our clients.
Our credit experts review how credit markets fared in the first quarter of the year and share the latest scorecards for the global credit universe.
Following recent research trips, the Ninety One Global Environment team report back from the world’s first ‘electro-state’.
Ninety One's multi-asset growth team provides insights into the macroeconomic environment that informs our investment outlook for the coming quarter. This includes concise summaries of our asset class views.
Three members of our EM Debt team went to Washington, DC – we asked them to share their highlights and pointers for investors, including a behind-the-scenes perspective on this important annual event.
Recent news headlines have driven up scrutiny of private credit market risks and sparked a sell-off in mainstream public credit markets. But market moves mask a divergent picture of risk exposure. Our Multi Asset Credit team explains how credit investors can navigate the risks and take advantage of attractive valuations.
Pressure is building in US private debt as weaker underwriting standards, rising defaults and AI-disruption risks combine to create a perfect storm. In contrast, investors in emerging markets can access asset-heavy borrowers, in deal structures that offer higher senior-secured yields and stronger protections.
Oil shocks don’t just disrupt, they accelerate change. Higher prices and energy insecurity are fast-tracking the shift to electrification and clean technology, led by emerging markets.
Concerns around risk in private markets have prompted a reassessment of the asset class and driven a sell-off across developed credit markets. Yet significant differences in underlying risk mean active investors can find shelter, quality and value in the broader public credit market.
Market and portfolio insights, webinars & events curated from across our investment teams to help you steer through changing investment landscapes.
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