Insight Investment

Defined benefit (DB) pension schemes in the UK are better funded than ever before, and the options for trustees and sponsors have widened. The potential benefits are significant, and Insight’s Hannah Ni Riain and Callum Duffy offer a detailed overview of the choices DB schemes face and the potential implications in this video. We provide more detail in a longer form video here: https://bit.ly/4cziv7g Capital at risk. For professional investors only

Global credit or global corporates? Global credit is a larger universe and offers a wider opportunity set. It can also provide a stronger credit profile and so potentially higher risk-adjusted returns. Learn more about the differences between these two markets here: https://bit.ly/3W1tmS2 Capital at risk. For professional investors only.

LGPS funds are in surplus on an aggregate basis. How can individual surpluses be protected? Watch Paul Richmond of Insight outline three cost-effective solutions. For more information on how LGPS funds can protect their surplus, click here: https://bit.ly/3RTZi8m Capital at risk. For professional investors only.

Why invest in US municipal bonds? Jeffrey Burger, CFA, senior portfolio manager at Insight, offers a quick overview of muni bonds issued to finance US infrastructure, utilities, education and healthcare – and compares munis with corporate debt and US Treasuries. Learn more here: https://bit.ly/4cDCtxD Capital at risk. For professional investors only.

Currency hedging protects against adverse currency moves but creates cashflow volatility, as derivatives can generate either cash inflows or outflows. We believe a dynamic approach to hedging can reduce such volatility. Read why in our paper: https://bit.ly/3V7e7EJ Capital at risk. For professional investors only.

The US dollar carry story is allowing the dollar’s stretched valuation to persist, partly because the Fed has delayed policy easing. Read more about this, and the potential impact on currency markets of a second Trump presidency and a new era of trade protectionism, in our latest currency quarterly: https://bit.ly/3VZCjuP Capital at risk. For professional investors only.

Defined benefit (DB) pension schemes in the UK are better funded than ever before, and the endgame options for trustees and sponsors have widened, with significant opportunities now emerging. Watch our video to find out more: https://bit.ly/4cziv7g Capital at risk. For professional investors only.

Christopher Broadley, Portfolio Manager at Insight Investment, said: “This week’s chart looks at the changing correlation between US equity and government bonds. The long period of negative correlation (the ideal relationship for 60/40 investors) that began in the early 2000’s and lasted until the post-covid inflation surge is now firmly in the rearview mirror. On both a one- and three-year view, the equity-bond correlation continues to rise, supported by above target inflation. This reduces the benefit that government bonds offer to multi asset investors in terms of the amount of diversification they offer. This challenge highlights the advantage of portfolios that diversify across a wider spectrum of asset classes.” Click here to view our chart of the week: https://bit.ly/4b9z354 Capital at risk. For professional investors only.

Once again, high yield markets delivered positive returns through the rate-hiking cycle. Interestingly “fallen angels” (companies with former investment grade bond ratings that have since been downgraded to high yield), performed better than the broad high yield market despite higher average interest rate risk. Should investors looking for higher bond yields consider a dedicated fallen angels strategy? Read more here: https://bit.ly/3x7fGv0 Capital at risk. For professional investors only.

UK DB schemes have accrued an aggregate surplus estimated by the government at £225bn, which could support enhanced benefits for millions of people, financial returns for sponsors, and long-term benefits for society. We have drafted a primer to help corporate sponsors understand the potential benefits available for them. Read more here: https://bit.ly/3VrjRdd Capital at risk. For professional investors only.