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We are focusing this autumn update on what the climate crisis means for our clients.

Global temperatures are currently on a trajectory to increase by nearly 4°C above pre-industrial levels, which would be truly catastrophic, unless action is taken.

Why we believe buy and maintain investors may wish to consider allocating to emerging market debt.

As the French philosopher Voltaire said, “Uncertainty is an uncomfortable position. But certainty is an absurd one.”

An update on our recent engagement activities and some key considerations for our clients.

Five years on from Freedom and Choice, the New Romantic generation is dancing towards a decidedly unromantic retirement.

Despite the ongoing challenges, we see next year as a time for healing – for the economy, environment and society.

With over £100bn of defined contribution (DC) assets under management, Legal & General’ is the largest DC pension provider in the UK.

As fixed income professionals, one question we find ourselves increasingly answering is: How do you make the connection between environmental, social and governance (ESG) considerations and credit?

Q3 Outlook: Taking stock

We believe there is a striking disconnect between market pricing and the real economy, especially with regard to expected company earnings.

Harnessing multiple return sources

In this outlook, teams from across LGIM examine the opportunities and risks with which investors are presented in this context.

The second annual results of our Climate Impact Pledge showcase the corporate leaders and laggards on climate action; we are encouraged by improvements across sectors but will continue to press companies to meet this era-defining challenge.

Five pointers to help you understand what we at LGIM are doing to support your pension governance strategy

We look at whether TIPS (Treasury Inflation Protected Securities) deserve a greater role within UK defined benefit (DB) schemes’ portfolios.

Good governance is crucial to all boards, whether they oversee a FTSE 100 multinational, a multi-billion pound pension scheme or a national charity. There is no one-size-fits-all approach to how boards should be run but we have learned that there are plenty of ways to evolve and enhance effectiveness.

Managing transfers out of DB pension schemes.

Cashflow matching strategies are customised investment solutions, designed to enable clients such as pension schemes or insurance companies to meet their liabilities. We believe that emerging market fixed income has an important role to play in designing cashflow matching strategies.

Unfortunately for markets, our bearish outlook for 2018 came to pass. For 2019, the key question is how tightening fnancial conditions will impact heavily indebted borrowers – and whether this raises the risk of recession.

There are so many elements to consider when building factor-based solutions it can be overwhelming. We’ve highlighted two case studies of investors tackling these challenges.

The falls over the past two years in high yield and emerging market debt (‘alternative credit’) credit spreads,1 along with indications of late-cycle behaviour in the US, has led some investors to be nervous about allocating to these areas. But should pension schemes reconsider?

In our last quarterly outlook, we flagged our cautious posture on risk assets, taken due to a number of smouldering risks on the horizon. One risk we did not highlight, however, was that a pandemic would break out, causing untold human suffering and economic damage.

Cleaning up the world’s plastic waste will be a monumental effort – one which will have major implications for petrochemical companies and the long-term demand for oil.

Investors have been buffeted by a large number of negative headlines in 2018. We remain of the view that tightening global liquidity conditions are likely to exacerbate market volatility.

Investors need to factor in how immigration concerns in the European Union could fuel the rise of populist parties, potentially increasing the political risk premium.

While trade tensions have escalated in recent months, we believe the case for emerging markets remains compelling - if investors know where to look.

Many investors combine concerns over overcrowding in factors with capacity fears. We want to help separate these terms and provide some clarity over the current state of factors.

Is artificial intelligence overhyped, or are we at the vanguard of a new wave of corporate productivity improvements ushered in by next-generation technology?

Companies that have seen their share price depreciate sharply in the face of self-inflicted wounds, structural challenges, or cyclical headwinds, represent potential ‘turnaround stories’. In this article we look at the attraction of investing in these businesses, and evaluate the risks or opportunities they present.

We expect another strong year for growth with the global economy firing on almost all cylinders. But the market has priced in this optimism, implying greater vulnerability for disappointment. We expect the low interest rate environment to continue into 2018. While interest rates can drift up, we do not think this is the beginning of the end for the bond markets.

The consequences of monetary tightening will define the 2018 investment landscape.

Slower population growth has probably depressed OECD inflation by around ½% over the past decade. Going forward, the outlook could change.

A weak pound and rising inflation, set against a tight labour market and loose credit conditions, should keep the UK out of recession.

The retirement of baby boomers is having a negative impact on economic growth. This is bad news for the return on risky assets and applies downward pressure on interest rates.

Pay-as-you-go pension and healthcare schemes are under increasing pressure from ageing populations.

Effective cashflow management for DB pension schemes.

This paper examines how uncertainty regarding future mortality rates and life expectancy, i.e. longevity risk, affects defined benefit pension schemes.

Investors currently buying UK government bonds are doing so in the knowledge that they are accepting a yield which is lower than the rate of inflation, i.e. the real yield.

In a surprising result, the general election has ended in a hung parliament. At the time of writing, the Conservative party has won approximately 318 seats.

Global credit markets have shown remarkable resilience over the past year.

The logistics industry is seeing increased investment, driven by technology trends including automation and smart manufacturing.

The DC pensions industry has moved forward since auto-enrolment was introduced, with many more saving into a pension. This is great news, but challenges remain. How do we help individuals see the value in saving more for a future that seems a long way off?