Inflation has raced to a height not seen in the UK for 30 years. It’s a similar story across the developed world.
While institutional investors will have hedged against such risk, the severity of the rise in the cost of goods and services – up to 5.4% from 2% in the final five months of 2021 (CPI) – will lead to concerns that further rises could destroy value. Indeed, retirement schemes have already wiped £20bn off corporate balance sheets, according to one analyst.
The February edition of portfolio institutional examines the issue to find out whether the inflationary picture is transitory or not.
We also take a look at what impact, if any, COP26 is having on institutional investment portfolios and strategies, as well as questioning if it is time for de-risking pension schemes to look at UK equities again now that inflation is rising.
China also falls under our microscope where we look at whether reports of a ‘crackdown’ on private enterprises is anything to be concerned about for those exposed to the world’s second largest economy.
Finally, we speak to James Brooke Turner, head of investment at Nuffield Foundation, to discover how he is funding improved social wellbeing in the UK.
We hope you enjoy the issue.