Welcome to our 2021 Summer edition of Investment Perspectives.

Both western climates and economies are warming up as inflation surges and we progress towards the normalisation of everyday life on the back of successful vaccination campaigns. The question for investors now is whether this period of overheating is a short-term heat wave or a longer-term shift, such as climate change. The science is less absolute on the current inflationary climate compared to the environmental one, an issue which we are continuing to see rise to the top of agendas.

These intertwining themes permeate throughout this edition of Investment Perspectives as Chris Arcari explores the current inflationary environment and the risk that this momentary surge becomes a momentous shift to a prolonged period of high inflation, in addition to his regular capital markets update.

In the remaining articles, the topic of climate change is discussed as:

• Ross MacLeod covers the Taskforce for Climate-related Financial Disclosures (“TCFD”) and some of the ways we can help you understand and report climate change risk; and
• Penny Cochrane covers the growing emergence of sustainability in fixed income and illuminates some of the key characteristics of these assets, including the concept of the “greenium”.

Download our full publication here