Strategic asset allocation decisions will need to consider how the transition will impact economic and financial variables and thereby, the returns investors can expect in the future across asset classes . Our findings suggest that the transition will lower the expected returns of risky asset classes (e.g., equity, high yield credit). Corporate cost structures will be negatively impacted, leading to lower earnings growth. Yet, we also recognise that responsible investors will favour sectors and companies which lead the innovation required to make the transition happen.
Continue reading this article?
Register for free and get access to Investment Officer International:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
Register for free and get access to Investment Officer Luxembourg:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
