System-relevant information

Evolving investor information needs

The accumulation of people-related impacts across the economy can also give rise to system-level risks or, conversely, may help realise system-level opportunities (See Section 3.2 and Figure 12).

The financial returns of diversified investors—including pension funds, insurers and some asset managers—are overwhelmingly determined by systematic effects across the economy, rather than by the returns of individual investments, shaped by entity-level risks or opportunities.[i] Reflecting this, investors are increasingly paying attention to system-level risks that have the potential to depress the returns of diversified portfolios, such as the societal stability and macroeconomic risk related to inequality.[ii]