Institutional Asset Manager Newsletter 25.10.24

UK set to become a leading hub for transition finance market

Following the UK’s International Investment Summit which the government says secured at least GBP63 billion in funding for critical technology, infrastructure and green transition projects, the Transition Finance Market Review (TFMR) gives indications on how to put that some of that money to work.
This week we bring you the recommendations from the TFMR, a UK government commissioned independent review into how to scale a high-integrity transition finance market, which notes that the nation is "uniquely positioned to become a leading hub for the transition finance market and use its leadership position for financial and professional services to accelerate the global transition… But the opportunity is timebound and the government, companies and market must act together now to establish a coherent strategy".
Vanessa Havard-Williams, Chair of the Transition Finance Market Review, is clear in her view that the government must reform regulation and policy - and do so quickly - if it is to beat global competitors in leading the way on transition finance.
"The UK has the infrastructure, market and ambition to succeed, leveraging its capability as a commercial, financial and civil society leader. It must act now to seize these opportunities and to unlock change not just for the UK, but also other nations working to meet the goals of the Paris Agreement," Havard-Willliams says.
Havard-Williams sees the UK as playing "a leading role in financing the global transition while supporting its own", urging government to ensure the county does not end up being dragged on the shirttails of other more nimble regions, that have got their transition finance act together.
For investors with an eye on infrastructure investment outside of the UK, we bring you an article from Michel Lowy, Co-founder and CEO at SC Lowy, who writes that private credit in the Asia-Pacific (APAC) region is emerging as a "compelling investment opportunity, driven by a combination of structural inefficiencies in traditional banking and the region’s robust economic growth".
A combination of fragmented banking markets unable to support the demand for capital which is essential in financing APAC’s infrastructure projects and promoting sustainable development.
Lowy argues that APAC countries face limited access to capital which makes the region attractive to investors seeking diversification benefits across developed and emerging markets.
He says: "Sectors like real estate, industrials, healthcare and infrastructure are ripe for investment, providing opportunities to diversify beyond the traditional focus areas of public market portfolios".
Keep voting in the Institutional Asset Manager service provider awards for 2024.
We have extended the deadline by a week. Voting will now close on Friday, 31st October, 2024. Follow this link to place your votes for your favourite firms.
The awards event will be held on 4th December in central London.

Gill Wadsworth, Editor, Institutional Asset Manager
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