Markets recovered from the ‘Brexit’ shock relatively quickly to deliver a solid set of returns over the third quarter, especially from those hard hit by the uncertainty. But political risks remain in the form of further referenda in Europe and the US presidential, congressional and regional elections. Likewise, the ongoing developments concerning negotiations between the UK and the EU and the triggering of Article 50 also have the potential to rile markets intermittently for years to come. We look at some of these key themes in further detail and consider a broader outlook on the markets.
In this issue we look across a variety of asset classes and topics to explore the key themes of relevance to institutional investors.
We profile the Investec Emerging Market Corporate Debt Strategy, covering our research on the asset class. This includes why we think investors have overestimated and mispriced the risk in emerging market corporate bonds.
We reflect on, and celebrate our 25th year in operation. Over the past 25 years we have seen revolutionary change that has transformed how we, and our clients, do business. We also look forward to the key challenges facing investors over the next 25 years, including environmental, social and governance (ESG) issues, the role of active ownership, dealing with low rates and disinflation, and adapting to changes in emerging markets. All of these strategic themes will affect how investment managers will seek to preserve and grow wealth for future generations.
The latest chapter of our Investment Institute Journal seeks to address some of these challenges. Chapter 2, of Journal 4 continues to explore the theme, “building resilience in the face of a low-growth, low-return world. Our contributors weigh in on changing economic, regional and industry trends, as well as the increasing focus on incorporating long-termism and sustainability into mainstream investment practices.
I hope you find the rest of this issue both interesting and useful and please do not hesitate to contact us if you would like more information on our strategies.