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Institutional investors across the globe are largely standing firm despite acknowledging the rising geopolitical risks impacting their portfolios.
Recent research by investment consultancy firm Bfinance, involving over 160 institutional investors worldwide, reveals that most entities have not adjusted their strategic investments amidst the current economic turbulence driven by trade conflicts.
The survey found that a significant 82% of respondents have noticed an increase in geopolitical risks since the start of the year. European investors particularly feel the pressure, with 85% responding to increased risks, compared to 80% in the Americas and other regions. Unstable political environments and shifting global alliances are major factors contributing to this sentiment.
Despite these challenges, 75% of the institutional contingent report their risk appetite remains unchanged, indicating resilience amid turbulent times. Bfinance highlighted that the view of increased risk is shared across all investor categories, from pension funds to sovereign wealth funds, suggesting a wide-reaching consensus on the issue.
In terms of ESG (Environmental, Social, and Governance) considerations, nearly half of the investors report no change in strategy. However, opinions are shifting, with 24% viewing ESG as less appealing amidst growing policy resistance in the US. Around 50% are actively reassessing their approaches to ESG-related investments, focusing particularly on sustainability and climate-oriented strategies.
This divide on ESG priorities varies among investor types. Mission-linked investors like endowment funds are staying committed to ESG objectives, while those under more economic performance scrutiny are reconsidering their positions. Notably, institutional investors showed a split stance: 36% are staying the course, yet significant proportions are either downgrading (25%) or upgrading (17%) the appeal of ESG.
Ultimately, Bfinance's study shows a strategic recalibration phase for institutional investors, even as geopolitical uncertainties and policy shifts, especially in the US, prompt reassessments of certain tactics. Yet the dedication to long-term goals persists, with European investors leading in maintaining ESG principles whereas US investors navigate a shifting policy environment.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at curbing potential risks in the housing market. Effective February 2026, APRA will implement a cap limiting the proportion of new home loans with high debt-to-income (DTI) ratios. This move is designed to promote responsible lending practices and ensure the stability of the financial system. - read more
The Australian Securities and Investments Commission (ASIC) has released preliminary insights from its comprehensive review of the motor vehicle finance sector, uncovering concerning trends that necessitate immediate attention from both lenders and consumers. - read more
The Australian Automotive Dealer Association (AADA), in collaboration with AutoGrab, has released the 2024 Year That Was Automotive Insights Report (AIR), providing a comprehensive analysis of the used car market's performance and offering projections for the year ahead. - read more
In a significant development within Australia's auto finance sector, non-bank lender MONEYME has successfully priced a $455.4 million asset-backed securitisation (ABS) for its secured car loan product, Autopay. This transaction marks the company's second major auto bond deal, following a $517.5 million transaction earlier in the financial year, underscoring MONEYME's rapid expansion and growing influence in the market. - read more
The Australian Securities and Investments Commission (ASIC) has recently unveiled findings from its comprehensive review of the motor vehicle finance sector, highlighting concerning trends that are likely to prompt a tightening of lending practices across the industry. The review revealed that nearly half of all consumers who defaulted on their car finance repayments did so within the first six months of the loan term. - read more
In a landmark decision, ANZ Bank has agreed to pay a record-breaking A$240 million (approximately US$160 million) fine for a series of serious regulatory breaches. This penalty underscores the growing emphasis on compliance and accountability within Australia's financial sector. - read more
The Australian Securities and Investments Commission (ASIC) has commenced a thorough review of the motor vehicle finance sector, focusing on strengthening consumer protections and ensuring industry compliance with responsible lending obligations. This initiative aims to address potential risks and improve the experiences of borrowers across Australia. - read more
The cost of buying a car is a major financial commitment, so it's important to consider all of your options before making a purchase. In this article, we look at some of the pros and cons of the most common car financing options, including leasing, hire purchase and paying cash, and what difference it makes whether you are buying a new or used vehicle. - read more
For many Australians, a car is more than just a means of transportation; it's a symbol of freedom, a tool for exploration, and often, a reflection of personal style. With the auto market continually evolving, staying abreast of current trends is key for car buyers looking to upgrade. New models with advanced technology, improved fuel efficiency, and enhanced safety features enter the market each year, making the prospect of upgrading increasingly appealing. - read more
Car finance in Australia presents a myriad of options for those looking to purchase a vehicle through a payment plan. Understanding how car finance works is crucial to navigating this complex landscape and finding a deal that aligns with your financial goals. From loans offered by banks and credit unions to dealer financing and specialised car finance companies, the choices are extensive. - read more
If you're in the market for a new car, you may be wondering if you can get a loan with poor credit. The answer is yes, but it's important to understand the impact that your credit history can have on the loan process. - read more
Car loan refinancing involves taking out a new loan to pay off an existing car loan. This can be done with the same lender or a different one. The primary goal is often to secure better interest rates, alter the loan term, or reduce monthly payments. - read more
Buying a car, especially for the first time, can be an exciting milestone. It's not just about finding a vehicle that suits your needs and lifestyle—it’s also about navigating the financial journey that accompanies it. One crucial part of this process is understanding auto loan pre-approval. - read more
When it comes to car loans, one of the first things you need to determine is your budget – how much can you afford to borrow and still comfortably make your monthly car loan repayments? - read more
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Knowledgebase
Consumer Credit Code: An act of Parliament that governs the relationship that exists between borrowers and lenders.