Risk and Reward – Q3 2018

Our latest edition explores blockchain technology, and where we anticipate that blockchain will drive profound change. We also talk to Invesco’s Regional Head of Investments Asia-Pacific Anna Tong on her investment experience in the region.

Oct 30, 2018 | Invesco

As part of Invesco’s continuing focus on disruptive trends and technologies, the feature article in this edition of Risk & Reward deals once again with blockchain technology. We examine the wider implications of blockchain for capital markets and the asset management industry in particular.

While blockchain has not yet been widely incorporated into investment management systems and processes, there is a clear trend in this direction, and Invesco’s experience leads us to believe that it will grow to play a critical role in the future of asset management. The lead article in this edition of Risk & Reward and the related interviews with top industry and academic experts highlight four areas where we anticipate that blockchain will drive profound change: settlement and clearing, the use of “smart” contracts to facilitate transactions, transmission of index data and the “tokenization” of assets. Asset managers must be prepared to deal with advances in these areas as well as the new risks they introduce.

This edition also includes views from Invesco’s Global Market Strategist Office on the implications for global investors of increasing cyclical divergence and structural fragmentation due in part to elevated geopolitical risk. Next, we explore how the long-duration inflation-linked cash flows provided by long-leased real estate, as well as the income and lower volatility this sector has offered, may make it a good way to address pension fund and insurer liabilities.

We also speak with Invesco’s Regional Head of Investments Asia-Pacific Anna Tong, who shares some of the insights and experiences she has gained over more than three decades in the investment management industry in the Asia-Pacific region.
 

To find out more, click on “Download PDF”.

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