Our Active Ownership report details how our Investment Stewardship and Investment teams exercised voting rights across our entire book and engaged with companies, policymakers and other stakeholders
The plates under the global economy are shifting. Advances in technology, population change, decarbonisation and geopolitical pressures are both catalysing new industries and rendering some assets obsolete.
Private credit performed well in 2023, with low default rates and plenty of market activity. Will this continue into 2024?
In his annual outlook, Global Head of Investment Strategy & Research Rob Martin considers long-term performance as the combination of structural tailwinds and cyclical opportunities.
We’ve now put together a summary of the progress since our roadmap was published covering the work done up until the end of 2022.
How cuts to bank lending could grow the asset class
We remain cautious on near-term performance at the all-property level, given persistent upward pressure on yields, but some of this pressure has reduced as inflation has decelerated. UK real estate appears closer to the end of its re-pricing journey than in other geographies
In our CIO autumn update, teams from across LGIM assess the key implications of AI for our clients.
A year on from the inflation genie being released from the bottle, inflation is still nowhere near its long-term target level. Against this background, we examine the impact of a ‘higher-for-longer’ environment on private credit.
In this outlook, we assess why private credit has generally been resilient for the first half of 2023. But as we head into the second half of the year what’s behind the growing divergence between defensive and cyclical issuers?
Raising our expectations – climate lobbying, biodiversity and energy security for a net-zero world
During the passage from winter to spring, markets have continued to be swayed by the same drama that dominated investor attention in 2022: central bankers’ high-stakes efforts to rein in inflation, without sabotaging financial stability.
As the macroeconomic environment shifts from one of low to higher interest rates, Marija Simpraga assesses how this may affect returns for investors in renewable energy projects.
As 2023 unfolds there remain several plausible outcomes for the performance of UK real estate. In our view, the repricing seen over 2022 positions the sector relatively favourably.
With the UK government committed to net-zero carbon emissions by 2050, there’s a growing focus on the transition readiness of UK real estate sectors, and the implications for portfolios.
While a recessionary backdrop may mean private credit investors stay cautious in the short term, we believe there are grounds for optimism in 2023, not least higher starting yields.
This past year has been one of the worst periods on record for investors. We assess what could signal a turnaround in 2023.
As delegates gather at COP27, they confront the same long-term challenge posed by climate change as they did last year. But the context has changed dramatically: in light of the war in Ukraine, governments need to balance net-zero goals with a new imperative for energy security.
While investors have typically looked to commodities as an inflation hedge, a lack of income, coupled with volatile prices, has resulted in low risk-adjusted returns. Can direct energy investments help investors guard against rising prices?
In this episode, hear what attracted Bill to the world of property in the first place, as well as his views on the role of big cities, urban regeneration and the need for sustainable buildings.
In this latest episode of LGIM Talks, Bill Hughes, Head of Real Assets, talks candidly about the extension of the landlord moratorium.
What makes a ‘modern’ office space that genuinely suits occupiers’ needs?
E-commerce has changed the way we shop in a rapid space of time, growing at an annual average of 17% according to ONS calculations. But our demand for quick, reliable delivery has driven up the demand for logistics-capable properties closer to urban centres
This week we’ve returned to that famous British obsession: housing. Now that 20% of the UK population are choosing to rent their home, the expectations of lifestyle renters for their home developments have risen accordingly – such as allowing pets or permanent decoration.
We’ve all been in meeting rooms where the air has become so stuffy that there’s very little chance of good ideas emerging. Similarly, sitting nearer to a window has been shown to improve employees’ health, energy and performance.
Looking back, private markets have experienced robust returns, with 2021 making a high point. Fast forward to this year and the six months to June 2022, and the wider economic and markets environment is barely recognisable.
In our market outlook at the start of the year, we noted that investors should prepare for the unexpected, since we believed the road ahead was unlikely to be smooth. We were correct in our thinking, but not in the way we envisaged.
What might happen in the second half of 2022 in European private credit markets?
In addition to precipitating a devastating humanitarian crisis, Russia's invasion of Ukraine has sent ripples across markets and raised significant questions for investors over the long term.
Last year was challenging for the UK hotel sector, albeit with some encouraging green shoots of recovery over the latter part of the year.
COMMENT “How?” is the most important question when it comes to prioritising ESG. The ESG narrative has been bubbling away across both the financial sectors and society for some time.
While consensus forecasts suggest further economic recovery in 2022, we remain prepared for bumps in the road.
Denz Ibrahim, Head of Retail and Futuring for Legal & General Investment Management, explains how it is reimagining shopping centres as places for people to gather for experiences.
The growth in private markets, helped by institutional participation, has been one of the most prominent investment themes of the past decade.
While buildings have a major part to play in supporting the transition to a low-carbon economy and society, many continue to operate at standards that are not consistent with meeting the objectives of the Paris Agreement on climate change.
In this report we focus on consumer-facing sectors as the economy recovers. Understanding trends in consumer behaviour and how they interact with different elements of the real estate universe remains key to positioning investments and favours selected parts of leisure and retail warehousing.
2020 was a difficult year, for society, businesses and markets alike. The pandemic presented new and unforeseen challenges, creating periods of extreme uncertainty, and correspondingly high volatility in financial markets.
Read our Active Ownership report to see how we use our scale and influence to bring about real change in the companies and markets we invest in.
Has a combination of Brexit and COVID-19 strengthened the case for ‘onshoring’, and, if so, what are the implications for real estate?
Based on our current expectations for the progression of the pandemic and the associated economic and financial impacts, our central case for all property returns is 5.2% p.a. over the 2021-2025 horizon.
Forecasting the economy and property markets remains very challenging, but since our last update we know more about the economic damage caused by the first wave of the Covid-19 virus
Unprecedented circumstances mean high uncertainty
Drawing on the data from the Legal & General portfolio over the last six months, Dan Batterton and Mike Adefuye talk about the resilience of the sector.
The Centre for Cities report, commissioned by LGIM Real Assets and Legal & General Capital, found that lack of government strategy, not lack of official public spending, was a barrier to meeting a national agenda for ‘levelling-up’.
Those who choose not to embrace this shift could be left behind. Those who challenge convention, embrace technology and change their mindsets to a service oriented model will likely deliver better outcomes for owners and occupiers alike.