Research Roundup: 14 April 2020
Welcome to AIST’s quarterly snapshot of recent research pieces and other good reads from Australia and around the globe that we trust you find of interest.
While much of what was forecasted at the start of 2020 has been made redundant by the rapidly developing coronavirus crisis, there are plenty of think pieces, ebooks and podcasts offering insight into how markets and economies are responding to the financial impact of the virus.
Mitigating the COVID Economic Crisis: Act Fast and Do Whatever It Takes
This e-book from London’s Centre for Economic Policy Research takes a comprehensive look at how the health and economic crisis has unfolded.
It includes international policy case studies, social policy implications, impacts to workforces, global stock market assessments, and economic lessons from inside China, Singapore and Europe.
Geopolitical risks get a COVID-19 makeover
The Eurasia Group has updated its Top Risks for 2020 article to reflect the impact of COVID-19 on key global challenges.
From Trump and the US elections to China trade, climate change and supply chains, the current pandemic has completely rewritten the script on some of the biggest global issues.
Super Liquidity: Not so simple
In this reply to a recent op-ed by Liberal Senator Andrew Bragg, Melbourne academic and former panel member of the Financial Systems Inquiry, Kevin Davis tackles some of the fallacies about the role of unlisted investments, such as infrastructure, in a superannuation portfolio.
COVID-19 scenarios and impacts
This business briefing from McKinsey & Co explores best and worst case health scenarios and corresponding economic outcomes.
The briefing also looks at what the ‘next normal’ will be post-lockdown, positing that businesses need to have a strategy in place to deal with the degree of shifts in consumer behaviour, regulation, organisation and supply chains.
Real estate check up
US investment manager Nuveen examines the pronounced effect that COVID-19 has already had on global real estate markets given the changes we’ve seen to the workforce and community spaces.
While retail and office property has taken a hit due to social distancing measures, Nuveen finds there are opportunities in industrial and logistics-related real estate.
Could Australia's airlines be nationalised?
The word 'nationalise' has begun to creep into some speculation over how some vital services – such as airlines – will come back from the economic crisis.
Garry Weaven, a key architect of Australia's superannuation system who recently stepped down as chair of IFM Investors, has dealt with major economic change in this country. He speaks with Linda Mottram about what could be needed to revive an increasingly shuttered economy.
COVID-Crash with Sam Sicilia and Martin Thompson
Hostplus CIO Sam Sicilia and Martin Thompson, Senior Consultant at Frontier Advisors provide insight into the unfolding health and economic crisis.
They highlight the effective measures taken during the global financial crisis and the challenges faced by the Australian government and financial sector.
In considering whether investors should be reassessing their asset allocations to deal with current risks, Sam Sicilia highlights that super funds have certain advantages that should be leveraged at this time, enabling a fund to avoid major changes to portfolios.
Northern Trust’s key market signs
Northern Trust Chief Investment Strategist, Jim McDonald, provides a global market assessment and looks at the anticipated ‘U-shaped’ recovery over the next 12 to 24 months.
Northern Trust has laid out key market signals it is monitoring to assess the effectiveness of global monetary, fiscal and health policy responses, given that the development of a successful vaccine or cure for COVID-19 is still some time from being widely available.
Real-time economic data is in high demand but short supply
Committee for Economic Development of Australia (CEDA) Chief Economist, Jarrod Ball, writes that the strength of economic and health responses relies on real-time data, and suggests that increasing funding to data collecting sources such as the Australian Bureau of Statistics (ABS).
Accidental sustainability – COVID-19 and ESG
Rebeco Head of Sustainability Integration, Masja Zandbergen-Albers, looks at how ESG values and practices are present in the current social and economic situation and how companies are approaching ESG aspects of business.
ESG going mainstream brings cost benefits
MSCI uses its own ESG rating system and finds that companies with high ESG scores, on average, experienced lower costs of capital compared to companies with poor ESG scores in both developed and emerging markets.
Findings show that the correlation between companies that have better ESG practices and generate lesser costs of capital also extends to equity and debt costs.