Royal London Asset Management
The latest research and outlooks in the ProAllocate library
- Fixed Income
Bank of England rate decisions: Hawkish hike, but energy price trajectory key for the outlook
The Bank of England raised rates 25bp to 4.0% on an 8-1 vote as inflation forecasts rose toward 5%, with economists split on further hikes depending on energy prices. Fund managers argue gilt yields remain attractive despite near-term tightening risk.
- Equities
The Viewpoint: What’s the point of stock markets?
The article argues UK equity markets are fulfilling their core purpose—pricing cost of capital—unevenly, citing depressed valuations driving buybacks and takeovers, while comparing the AI investment boom to the 1999-2000 tech bubble.
- Private Markets
The Investable Transition: why the energy transition will happen at the speed of economics, not ambition
Dalmore Capital's Alistair Ray argues the $2.3 trillion global energy transition will proceed at the pace of economics rather than policy ambition, which he says favours infrastructure investors positioned in Core and Core+ assets.
- Macro
ECB on hold - hike on track for December
The ECB held its deposit rate at 2.50% but signalled a likely December hike unless conditions change materially, even as fiscal concerns in France pushed sovereign yields higher. The asset manager report remains constructive on European sovereign bonds despite expected intra-region volatility.
- Macro
US Fed stands still as focus turns to future rate path
The Fed held rates steady but Fed Chair Kevin Warsh's hawkish rhetoric and two dissenting votes keep a December hike as the base case. Markets still price further tightening, though slightly less than before the meeting, amid elevated bond market volatility.
- Macro
UK Budget: Near-term giveaways, medium-term takeaways; still difficult decisions ahead
The UK Budget preserved fiscal rules with £15bn of headroom but raised borrowing, downgraded growth forecasts and pushed inflation higher, while deferring tough spending and defence-funding decisions to next year's Spending Review. Bond investors noted slightly higher-than-expected gilt issuance and a flatter curve, prompting a reduced preference for long-dated gilts in favour of five-to-seven-year maturities.
- Macro
Q3 Economic review: oil, chips and hikes
The asset manager argues global growth remains resilient despite volatile energy prices, aided by AI-driven investment and muted rate hikes, but expects slower H2 growth as inflation erodes real incomes. It foresees additional, though limited, central bank rate hikes amid two-sided risks to the inflation outlook.
- Sustainability
Nature data: from chaos to clarity
Royal London Asset Management's Carlota Garcia-Manas and Mathilde Rouhi introduce the firm's Nature Tool, which compares portfolio and benchmark exposure to water use, land-use change and pollution to target research and engagement. The tool does not predict financial loss but helps identify holdings and locations warranting closer stewardship scrutiny.
- Sustainability
Climate commitments are easy. Delivery is harder
Royal London Asset Management reports its H1 2026 Net Zero Stewardship Programme findings, showing incremental but uneven corporate climate progress and detailing voting escalations against boards at HSBC, BP and Glencore. The firm enhanced its Climate Transition Assessment methodology to better distinguish stated ambition from evidenced delivery.