XxX | Feature Contents Editorial


RECESSION: ENTER THE HAWKS


We are living in interesting times. Inflation has jumped to a 40-year high fuelling warnings of “apocalyptic” rises in food prices, crypto-currencies have gone into melt down, there is war in Ukraine and the hawks are arriving at central banks as surveys point to growing pessimism among investors.


Where to hunt for risk-adjusted value during a downturn, which could stretch across the globe, is the focus of this month’s cover story, which starts on page 16. This edition also looks at new thinking that can be found in investor circles, one that could see many facets of globalisation being reversed. Has the pandemic and war in Ukraine moved us into a period of de-globalisation? We find out what it could mean for investors from page 22. Elsewhere, this month’s ESG coverage centres on emerging markets. The carbon foot- print in these markets is huge and reducing it could cause more harm than good if peo- ple fall back into poverty if whole industries are closed. How investors could approach a just transition for the emerging world can be read from page 34. Pension schemes typically have long-term horizons, so gaining exposure to megatrends is ideal. Technology, automation and aging populations are just some of the themes that will shape our world in the years to come. Find out how institutional investors are placing themselves at the heart of these investment trends from page 42. Private equity is becoming increasingly popular as fewer companies are trading on public markets, where valuations are considered a little hot. Yet with so much inter- est, dry power has reached record levels, so where should pension schemes search for value? Finally, we talk to Mikkel Svenstrup, chief investment officer of the £109bn Danish public pension fund ATP about factor investing, bonds and his fund performing at 35%. We hope you enjoy the issue.


Mark Dunne Editor


m.dunne@portfolio-institutional.co.uk


Issue 114 | June 2022 | portfolio institutional | 3


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