M&G Investments
The latest research and outlooks in the ProAllocate library
- Private Markets
Private credit's overlooked opportunity: the case for non-sponsored direct lending
Non-sponsored direct lending to family and entrepreneur-owned businesses offers lower leverage, stronger covenants and better pricing than the more crowded sponsored European private credit market. The article argues this segment, exemplified by specialist lender P Capital Partners, complements rather than competes with traditional sponsor-backed direct lending.
- Portfolio Construction
Quarterly Equities and Multi Asset Outlook – Q3 2026
M&G argues that historic equity-market concentration and AI-driven price extremes are eroding traditional bond-equity diversification, prompting active managers to favour underappreciated stocks and long-dated government bonds over credit. CIO Fabiana Fedeli and colleagues detail regional views, favouring UK, Japan, EM and non-AI beneficiaries while overweighting duration.
- Fixed Income
Fallen angels are outpacing rising stars – Should investors worry?
Fallen angels have outpaced rising stars for the first time since 2021, yet defaults remain low and rating migration broadly positive, indicating no systemic stress. Forced selling at downgrade creates temporary price dislocations that active high yield investors can exploit for alpha.
- Portfolio Construction
Reimagining the opportunity: How Total Portfolio Approach could reshape multi asset investing
Large asset owners like GIC, Future Fund and CPPIB are shifting from Strategic Asset Allocation towards a Total Portfolio Approach, allocating dynamically across assets on a unified risk-return basis rather than fixed benchmarks. The author argues broken correlations and eroded safe-haven status justify applying TPA principles more broadly.
- Equities
Celebrating Independence Day: from the American Revolution to the stockmarket revolution
Marking 250 years since US independence, the piece argues America's deep-rooted equity and dividend culture has driven long-term compounding returns, with market dislocations historically offering attractive entry points into quality companies.
- Macro
Investment Perspectives Mid-Year Outlook 2026: Rally vs reality
Asset managers highlight a growing divergence between bond markets pricing inflation and fiscal risk from the Iran conflict and rising energy prices, and equity markets driven by AI enthusiasm. They question whether AI-fuelled equity gains can persist and stress selectivity across asset classes for 2026.
- Sustainability
Meeting climate targets: A more complex journey
As 2030 climate targets near, institutional investors face a fragmented transition and must move from broad ambition to practical implementation using broader toolkits, engagement and governance rather than binary decarbonisation choices.
- Private Markets
Old Money: How demographic change will reshape real estate
Demographic ageing is reshaping real estate demand as spending power shifts toward older, healthier cohorts, altering housing, healthcare, retail and leisure needs. Investors should selectively tilt portfolios toward ageing-driven sectors rather than pursue wholesale rotation.
- Emerging Markets
Stability and credibility: The evolution of emerging market debt
Emerging market debt has outperformed developed market rates, US high yield and equities during recent volatility, reflecting stronger EM fundamentals such as positive real rates, lower debt-to-GDP and rating upgrades. The authors argue this structural resilience, contrasted with deteriorating DM fiscal and policy credibility, supports EMD as a strategic allocation.