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NEWSLETTER | 5 Mar 2021

Budget tests UK’s commitment to fighting climate change

The UK finds itself in a precarious situation on a number of counts. The country’s ailing economy has shrunk by 10 per cent since the onset of the coronavirus pandemic last year, leading this week’s government Budget to focus on jump-starting output again. Extensions were announced for government coronavirus relief measures including the furlough scheme, VAT cuts, and the stamp duty holiday.

At the same time, Brussels is quibbling over granting UK-based financial services firms access to European markets. Tensions are reportedly spilling over into imminent legal action by the bloc against the UK for delaying implementation of the post-Brexit arrangement in Northern Ireland. Amid the uncertainty, latest figures suggest that financial services firms are moving GBP1.3 trillion in assets from the UK into the EU, along with thousands of jobs.

Meanwhile, investors have accused the UK of taking its eye off the biggest global challenge – the environment crisis. The raft of green initiatives announced this week includes funding for net zero innovations, the issuance of sovereign green gilts and green savings bonds, and an updated climate mandate for The Bank of England.

But these initiatives are being criticised for lacking teeth when it comes to biodiversity, carbon taxes, and ‘building back better’. With the International Energy Agency confirming that global energy-related carbon emissions have risen above pre-pandemic levels, it is no time for the UK to rest on its laurels.

In the US, previously laggard institutional investors are preparing to adopt ESG across their portfolios as they recognise the growing evidence that it can provide superior returns.

President Biden’s administration is also set to review a controversial ruling by the Department of Labor last year that banned pension funds from basing investment decisions on any "non-financial" factors, which has made it harder for them to invest in ESG funds.

Madeleine Taylor
Editor, Institutional Asset Manager
maddy.taylor@globalfundmedia.com

Fri | 5 Mar 2021, 13:07

By Shuen Chan, head of ESG at Legal & General Investment Management Real Assets.

Fri | 5 Mar 2021, 13:07

A new global research programme conducted by The Economist Intelligence Unit (EIU) and supported by Adams Street Partners (Adams Street) finds that 85 per cent of global institutional investors expect private markets to outperform public markets in the long term, with 80 per cent of respondents agreeing that these markets are less susceptible to volatility.

Fri | 5 Mar 2021, 13:07

UK savers put almost GBP1 billion a month on average into responsible investment funds in 2020, new statistics published today by the Investment Association (IA) reveal, while net retail sales into responsible investment funds in January 2021 reached GBP1.2 billion.

Fri | 5 Mar 2021, 13:07

Torstone Technology, a SaaS platform for post-trade securities and derivatives processing, and Firebrand Research, a provider of research and advisory services, has published a white paper highlighting the need for sell-side firms to re-evaluate their current processes and invest in the middle office in order to improve operational controls, reduce risk and support regulatory compliance.

Fri | 5 Mar 2021, 13:07

Foxberry, a provider of financial indices and front oﬀice technology for the financial sector, has launched a new indexing and analytics platform foxf9, aimed at helping financial institutions respond to an era of sustainability driven investing, hyper customisation and an increased focus on value-added content differentiation.

Wipro to acquire Capco

Fri | 5 Mar 2021, 13:07

Wipro Limited, a global information technology, consulting and business process services company, is to acquire Capco, a global management and technology consultancy providing digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific.

Fri | 5 Mar 2021, 13:07

Talos, an end-to-end technology infrastructure provider that supports the institutional trading of digital assets, has hired Alfonse Mandese as Head of Sales and Business Development.

Ropes & Gray adds to London funds team

Fri | 5 Mar 2021, 13:07

Global law firm Ropes & Gray has bolstered its international funds offering with the appointment of Emily Brown as a partner in its Asset Management Group, based in London.