Investment Horizons: Issue 4

22 December 2015

Retirement planning: an income strategy for old age

There is no single answer to the problem of how to make increasingly inadequate pension savings cover ever-lengthening lives at a time of low investment returns. Having looked at the way a number of countries tackle the issue, we think any solution needs to combine investment income with longevity insurance.

Exploiting economic conditions to pursue growth with less risk

The ideal for most investors is a portfolio that generates growth without exposing them to the threat of painful losses. A good way of reducing risk is being able to deploy assets in a way that best addresses the prevailing economic environment. But investors first need to identify the environment and then be able to adapt to it.

Interest rates: are investors in for a nasty shock?

Inflation is dead, it seems. The consensus view is that interest rates will only rise slowly from here and peak at a much lower level than in past economic cycles. In truth, however, forecasts are often wrong and the underlying drivers of much more rapid inflation are there, even if they are currently quiescent.

Putting a price on climate change

There is a growing acceptance that climate change is inevitable.Less clear are the economic consequences of a warmer world.Our economics team has used the increasing body of academic research to try to quantify the financial effects, identify the main losers and highlight any winners, if there are any.

Is the spectre of illiquidity again stalking global bond markets?

There has been much debate recently about the state of liquidity, or lack of it, in global bond markets. There have clearly been big changes in who is providing liquidity since the crash of 2008–09. While some markets seem unaffected, we highlight others where alarm bells are starting to sound.

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Investment Horizons: Issue 4 28 pages | 4,303 kb

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