What key trends do infrastructure investors face in 2019? For one, nationalist and populist movements are on the rise – creating an environment of heightened political risk, which investors may find hard to navigate. The result could weigh heavily on regulatory stability, as well as country risk or sovereign credit quality.
In tandem, environmental, social, and governance (ESG) matters are beginning to rise in prominence. Increasingly, investors are stepping up their focus in their investment mandates on companies that are seen as acting more sustainably.
Against this backdrop, the latest edition of Outlook keeps investors abreast of the most-read research from the past quarter – offering insights into how the Infrastructure segment is changing and, importantly, how it may yet evolve.
Outlook is available in PDF here
Moorgate compiles, edits and designs Infrastructure Finance Outlook.
The latest NACUBO-Commonfund’s annual study on endowment returns shows that college and university endowments’ net returns declined for the second straight year in 2016, dropping into negative territory and posting their worst results since the depths of the financial crisis.
Following the release of the figures, Darius Grant, Head of Endowments and Foundations at RiskFirst, spoke to Global Investor magazine about how enhancements to the way that endowments define, measure and manage risk could play a significant role in increasing the probability of maintaining the real value of the endowment spend across generations.
Read the full article here.
As the world looks to the UN Climate Change Conference in Paris – COP21 – the future of a low-carbon global economy is high on the agenda. Governments will seek strategies to limit the rise of global temperatures – with a maximum of 2 degrees Celsius being the target. But making the jump to a greener, more resilient world economy will have considerable repercussions on the energy industry and power generation market. As such, Standard & Poor’s has released a report detailing the financial implications of such a transition.
The report, Climate Change: Building A Framework For The Future, stresses that private capital and financing will be a key component to an agreement in Paris. According to the report’s primary analyst, Michael Wilkins, financing the transition to a decarbonised economy will rely on private investment aimed at low-carbon technologies that promote renewable power and energy efficiency. Meanwhile, strong incentives such as carbon-pricing will be necessary for the transition.
Thanks to targeted media coverage from Moorgate, the report was highlighted by a range of specialist energy and environmental press, including Low Carbon Energy Investor (here and here – behind paywalls), WaterGas, Business Green, and FTSE Global Markets.
Infrastructure development is essential for Italy’s post-crisis recovery. In fact, Standard & Poor’s has shown that infrastructure spending creates a ‘multiplier effect’, driving short-term employment and productivity, and promoting long-term economic growth. But if Italy is to grasp the multiplier effect’s benefits, it must secure more investment.
Writing for the Financial Times Adviser, S&P’s Stefania Belisario stresses that public spending alone is not enough – which means the Italian private sector must also play its part to help bridge the financing gap. Addressing public planning problems and improving Italy’s Public-Private Partnership (PPP) environment is necessary, while greater transparency will encourage investors to engage in infrastructure projects.
Please click here to read the article.
In a recent article for AFP Global Treasury & Finance Insights, Standard & Poor’s Claire Mauduit-Le Clercq explains that EMEA’s midsized companies must improve their credit risk transparency if they are to capitalise on Europe’s growing alternative lending markets. As such, S&P analysed 547 mid-market companies in EMEA. The results show that many midsize companies compensate for their relatively weak business positions with less aggressive financial policies, with a proportion able to reach investment grade level due to their niche market positioning, like high-tech companies.
Of course, this kind of information is invaluable for investors, and as studies of this kind increase in frequency and depth, the mid-market’s upward trajectory can only accelerate.
Please click here to read the full article.