Inflation expectations have not materially changed versus the previous quarter, hence the higher yields are driven by higher real yields as opposed to higher inflation.
Inflation has continued to decrease in Q3 albeit still significantly higher than the Bank of England’s 2% target for CPI.
Real and nominal Gilt yields both increased over the quarter. Real yields averaged an increase of circa 15 bps, while nominal yields increased by circa 30bps. This led to a commensurately higher break-even inflation rate.
A survey of UK pension funds and insurers that collectively oversee over £350 billion in assets, commissioned by AlphaReal, the specialist manager of secure income real assets, reveals that it is the speed of deployment that is the biggest obstacle to investing in renewable infrastructure.
The shortlist for the European Pensions Awards 2024 has been announced.
A survey of UK pension funds and insurers that collectively oversee over £350 billion in assets, commissioned by AlphaReal, the specialist manager of secure income real assets, finds that 95% of respondents expect to increase allocations to renewable energy assets over the next five years.