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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.
Westpac Banking Corporation has reported a slight decrease in its annual profit, recording A$6.99 billion for the fiscal year ending September 30, 2025, down from A$7.11 billion the previous year. Despite this decline, the result surpassed analysts' expectations of A$6.83 billion. The bank attributes this dip to intensified competition within Australia's mortgage market and a marginal reduction in its net interest margin, which fell by 1 basis point to 1.94%. - read more
The Reserve Bank of Australia (RBA) has decided to keep the official cash rate unchanged at 3.60% during its November meeting. This decision reflects the central bank's cautious approach in balancing inflation control with economic stability. Recent data indicates that the headline consumer price index (CPI) rose to 3.2% in September 2025, up from 2.1% in the June quarter, signaling persistent inflationary pressures. - read more
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Peter Stevens Motorcycles, a cornerstone of the Australian motorcycle retail industry, has entered voluntary administration, casting uncertainty over the future of the company and its approximately 400 employees. Founded in 1970 by the Chiodo family, the retailer expanded to 15 locations across Victoria, South Australia, New South Wales, and Western Australia, representing major brands such as Harley-Davidson, Ducati, and Triumph. - read more
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Commercial trucks serve as the lifeblood of the Australian economy, providing vital links between industries and markets across the vast landscapes. The importance of these heavy-duty vehicles cannot be overstated, as they are pivotal in ensuring the smooth operation of both urban and rural businesses alike. Engaging in the commercial truck market is a significant investment, and understanding the ins and outs of financing such a purchase is crucial for business success. - read more
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Bridging Finance: A short-term loan that covers a financial shortfall during time between the purchase of a new property and the sale of an old property.