Institutional Investors Maintain Course Amid Escalating Geopolitical Risks

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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.

Published:Thursday, 17th Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

ANZ's Australia Commercial Division Sees 11% Profit Growth

14 Feb 2026: Paige Estritori

ANZ Banking Group has reported an 11% increase in profit for its Australia Commercial division over the past year. This growth is attributed to robust lending activities, particularly in the agribusiness and health sectors. - read more

IMB Bank Recognised as Australia's Leading Personal Loan Provider in 2026

13 Feb 2026: Paige Estritori

In a significant achievement, IMB Bank has been named Australia's Best Personal Loan lender for 2026 by Mozo, a leading financial comparison platform. This marks the second consecutive year that IMB Bank has secured this prestigious title, underscoring its consistent commitment to providing exceptional value in personal lending. - read more

APRA's New Debt-to-Income Cap Aims to Curb High-Risk Mortgage Lending

13 Feb 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks associated with high debt-to-income (DTI) mortgage lending. Effective from 1 February 2026, APRA will enforce a cap, limiting banks to allocating no more than 20% of new mortgages to borrowers whose total debt exceeds six times their income. - read more

Record Surge in Investor Lending Reaches $72 Billion in September Quarter

13 Feb 2026: Paige Estritori

In the September quarter of 2025, investor lending in Australia reached an unprecedented $72 billion, marking a significant 12% increase from the previous quarter. This surge reflects a growing appetite among investors for property acquisitions, driven by favorable market conditions and competitive lending rates. - read more

APRA's New Lending Limits: What Borrowers Need to Know

13 Feb 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at curbing high-risk lending practices within the housing market. Effective from 1 February 2026, APRA will implement a cap limiting banks to issuing no more than 20% of new home loans with debt-to-income (DTI) ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more

Click for more Finance News

Truck Loans Articles

Essential Checklist for Commercial Vehicle Loan Approval

In the journey to secure a commercial vehicle loan, preparation is key. Just as a vehicle needs to be in perfect condition to hit the road, your loan application requires meticulous attention to detail to ensure a green light from lenders. This article embarks on the essential journey of understanding the critical checkpoints before applying for a commercial vehicle loan. We navigate through the path of prerequisites that pave the way for a seamless approval process. - read more

The Most Important Factors to Consider When Buying a Truck

Buying a truck is a major investment, whether it's for personal use or business purposes. With the plethora of options available in the Australian market, it's important to consider various factors before making a purchase. Your specific needs, budget, lifestyle, and work requirements should be taken into account before making a decision to ensure the truck you buy fits your needs. - read more

Understanding Credit Scores and Their Impact on Your Commercial Vehicle Loan Terms

Finding the right financing for a commercial vehicle in Australia can be a critical step for businesses and individuals alike. Whether it's for a single van or an entire fleet of trucks, understanding the intricacies of commercial vehicle loans is key to securing a deal that aligns with your financial goals. One factor that stands out in determining your loan terms is the credit score—a numerical representation of your creditworthiness. - read more

How to Choose the Right Lender for Your Commercial Truck Loan

For many Australian businesses, purchasing a commercial vehicle is a significant investment that often requires financial assistance. Understanding the intricacies of truck financing is crucial, as the right loan can affect your company's bottom line and operational efficiency. With a plethora of lenders offering myriad loan products, choosing the most advantageous deal can be daunting. - read more

Interest Rates, Terms, and Fees: What to Look for in Commercial Vehicle Loans

Choosing the right commercial vehicle loan is a pivotal decision for any business aspiring to expand its transportation capabilities. For many, commercial vehicles are integral to daily operations, and securing the best financial arrangement to acquire these assets can significantly impact the bottom line. - read more

Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!

Knowledgebase

Option:
A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.