There is also evidence that there are fewer contrarian investors in the market, or that investors traditionally considered as contrarian may behave pro-cyclically in episodes of severe market stress.14 Another sign of increasing risks is given by the fact that asset managers’ activities have become structurally more correlated over the years, owing to the diffusion of common investment strategies across different business activities.
A crucial part of this approach includes working with regulated entities as they set out to meet the new Climate-Related Disclosure regime, and that the new disclosure requirements will deliver the best outcomes for New Zealand in terms of the management of potential ENDORSEMENT UNCLASSIFIED  UNCLASSIFIED  risks.