L&G Asset Management
The latest research and outlooks in the ProAllocate library
- Emerging Markets
Navigating El Niño: the implications for EMD
El Niño's impact on emerging markets will be highly country-specific, depending on existing fiscal, food-inflation and hydropower vulnerabilities rather than the storm's overall meteorological strength. The piece argues investors should treat it as a dispersion trade across EM debt rather than a directional asset-class call.
- Macro
Bank of England joins the hiking party
The Bank of England raised rates 25bp to 4%, its first hike in three years, as Middle East-driven energy inflation prompted a hawkish shift despite weak UK growth and labour markets. Markets had priced the move, so attention focused on hawkish MPC commentary, sterling strength, and mixed implications for gilts and UK equities.
- Private Markets
Potential opportunities in gateway markets
L&G Asset Management argues US multifamily real estate performance has diverged by metro, favouring gateway markets like San Francisco's AI-driven demand revival and Chicago's constrained construction pipeline over oversupplied Sun Belt cities.
- Macro
US midterms: a political shift, not a market reset
L&G analysts argue the Democrats' stronger-than-expected midterm gains entrench Washington gridlock, limiting fiscal stimulus and Fed-independence risks, but say macro fundamentals and earnings will matter more for markets than election results.
- Fixed Income
Are cashflows the new growth in global high yield? Why HALO assets matter again
As high yield spreads tighten and dispersion rises, investors are rewarding certainty over growth potential. The piece argues that hard-asset, low-obsolescence (HALO) businesses with scarce physical assets and resilient cashflows offer superior risk-adjusted returns.
- Sustainability
Why compliance carbon markets matter: Engaging through the EU ETS review
56 investors managing €13.6tn urge EU leaders to keep the Emissions Trading System robust and predictable, arguing it underpins Europe's competitiveness, energy security and clean industrial transition ahead of July's ETS review.
- Equities
CAPE fear?
The article argues that the elevated US CAPE ratio overstates bubble risk because the valuation-return relationship rests on weak statistics, rapid earnings growth will quickly lower the multiple, and non-US equities remain inexpensive by comparison.
- Portfolio Construction
Systematic active investing – combining active insights with systematic discipline
The article argues that systematic active strategies combine active insight with rules-based implementation, offering benchmark-like diversification and cost while aiming for modest, consistent outperformance. It contends this approach also mitigates behavioural biases inherent in discretionary decision-making.
- Sustainability
Quarterly engagement report: Q3 2026
L&G's Q3 2026 stewardship report details engagement on climate, nature, social resilience and governance, including Tesco low-carbon farm visits, COP17 nature-policy talks, Korean governance reform and equal-voting-rights advocacy, alongside global voting statistics.