Global Intelligence
Our 2H | 2021 outlook
Sustainability scenarios
While the history of the global pandemic is still being written, one enduring outcome of the past year will certainly be its effect on the imperative of sustainability. This shared trauma served to remind us just how fragile we are as a community, as a global economy, and as stewards of the earth’s climate. The difficult work of improving environmental, social, and governance norms is taking place at all levels of society, and the resulting changes will have profound implications for investors.
We devote much of this issue of Global Intelligence to examining those sustainability scenarios. Global Chief Economist Frances Donald explores what it means to incorporate ESG factors into macroeconomic forecasts. Our Global Head of Private Equity and Credit Vipon Ghai and our Director of ESG in Private Markets Maria Clara Rendon Echeverri look at the ways that sustainability is being embraced by private companies seeking capital around the world. Senior Portfolio Managers Kathryn Langridge and Philip Ehrmann partner with our Head of ESG in Asia Eric Nietsch to describe how emerging markets represent a concentration of ESG risks and opportunities. Our Global Head of ESG Integration and Research Peter Mennie and our Head of Sustainability in Private Markets Brian Kernohan explore the issue of biodiversity and how investors can better understand the relationship between their portfolios and the natural world.
Another significant issue highlighted by investors over the past year is the deepening search for yield and income security in retirement. Senior Portfolio Manager of Asian Fixed Income Paula Chan and Client Portfolio Manager Dylan Ngai review the merits of a relatively high-yielding asset that until recently was beyond the reach of most investors: onshore Chinese bonds. Serge Lapierre and Frédéric Kibrité from our liability-driven investing team partner with Professor Andrew Clare of the University of London to demonstrate how various approaches to liability-driven portfolios can improve retirement outcomes.
We’re pleased to provide our latest thinking on issues that we believe will affect investors in the months and years to come. At Manulife Investment Management, our global footprint and diverse capabilities enable us to offer both the insight of our experts around the world and the product solutions to help investors realize the possibilities.
We hope you enjoy this edition of Global Intelligence, and we welcome your feedback.
Paul R. Lorentz
President and CEO, Manulife Investment Management
Asset allocator's view
Applying an ESG lens to macroeconomic analysis—a starting place
Environmental, social, and governance factors play an increasingly important role in macroeconomic analysis and the formulation of investment outlooks. Find out why.
Valuing biodiversity: the tools at our disposal
We discuss an investor's perspective of the current tools, incentives, and initiatives available to value biodiversity.
Emerging markets and the case for sustainable investing
Sustainability-focused capital is much needed in the emerging markets. Using three case studies, we outline opportunities focused on environmental, social, and governance risk mitigation and adaptation.
Sustainable private equity and the new drivers of value creation
Private equity investors still seek what they've always required—returns, service, and transparency. We explore why sustainability is becoming just as important a factor.
A closer look at the growing appeal of China bonds for global investors
Easier access, low historical volatility, and high relative yields give China bonds a unique appeal in today’s fixed-income environment. We take a closer look at how—and why—investors might implement an allocation.
Building better retirement plans with liability-driven investing
Partnering with the Bayes Business School at the University of London, we demonstrate the benefits of adopting an LDI approach—in particular, one that includes alternative and real assets—as a way of improving retirement outcomes.
Important disclosures
A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange-trading suspensions and closures, and affect portfolio performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social and economic risks. Any such impact could adversely affect the portfolio’s performance, resulting in losses to your investment.
Investing involves risks, including the potential loss of principal. Financial markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. These risks are magnified for investments made in emerging markets. Currency risk is the risk that fluctuations in exchange rates may adversely affect the value of a portfolio’s investments.
The information provided does not take into account the suitability, investment objectives, financial situation, or particular needs of any specific person. You should consider the suitability of any type of investment for your circumstances and, if necessary, seek professional advice.
This material is intended for the exclusive use of recipients in jurisdictions who are allowed to receive the material under their applicable law. The opinions expressed are those of the author(s) and are subject to change without notice. Our investment teams may hold different views and make different investment decisions. These opinions may not necessarily reflect the views of Manulife Investment Management or its affiliates. The information and/or analysis contained in this material has been compiled or arrived at from sources believed to be reliable, but Manulife Investment Management does not make any representation as to their accuracy, correctness, usefulness, or completeness and does not accept liability for any loss arising from the use of the information and/or analysis contained. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline, or other expectations, and is only current as of the date indicated. The information in this document, including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Manulife Investment Management disclaims any responsibility to update such information.
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