Are value-focused managers making the most of political uncertainty? With Brexit looming, questions continue to be asked about the UK’s economic prospects and the outlook for UK investments remains uncertain. UK equities are unloved, but…
Beware inflation, which lurks before it spikes For Professional Investors Only
Investors shouldn’t get complacent about inflation: we may not see an early return to historic levels, but conditions are ripe for an unexpected rise. To fight the erosion of their purchasing power, investors should consider…
Down with the KIDs
The AIC has published further research demonstrating why consumers are being misled by Key Information Documents (KIDs) and why the FCA needs to act now to protect consumers. The research looked at 56 investment company…
The UK before Brexit
Two years after the EU Referendum, investor sentiment towards the UK is subdued despite the recent stock market highs. Concerns about Brexit and a UK economic slowdown are always present, but is this investor uncertainty…
Alternative routes to income
Income-seeking investors struggling with low interest rates on bonds and deposits plus high share prices, should consider investment companies holding alternative assets. Infrastructure - such as public buildings funded through the private finance initiative (PFI)…
Some Charts That Are Catching Our Eye
We thought we would have a look at a few charts this week that are catching our eye or have piqued our interest. So, less words this week and more pictures; which should make it…
From little acorns
Venture Capital Trusts or VCTs are becoming increasingly popular, with demand boosted by valuable incentives for investors in these tax shelters and tighter restrictions elsewhere. However, smaller companies and start-ups held within this type of…
Small is mighty
Europe became the flavour du jour As global economies emerged from a searing financial crisis at the turn of the decade, the US and UK seemed to pull ahead of their European cousins. Earnings there…
‘Yield beta’ – perhaps the most important consideration if you own any inflation-linked bonds For Professional Investors Only
Many investors have exposure to inflation-linked bonds, whether it’s within a diversified fixed income portfolio or a multi asset portfolio. The difficulty is that inflation-linked bonds and conventional bonds behave differently. Inflation-linked bonds provide you…
Watch the Bond Markets as Pivotal Areas are Being Tested
Some key levels are definitely in sight for the bond markets. We will have to just wait patiently to see whether yields break out on the upside (which of course means bond prices going lower),…
Bernanke’s latest monetary policy framework isn’t novel – it’s 90 years old For Professional Investors Only
Recently Ben Bernanke proposed a new framework for inflation targeting and monetary policy setting when interest rates are at the zero-lower bound (ZLB), exploring the idea that the Federal Reserve (Fed) should aim at price-level…
Thoughts Ahead of the ECB
By this time next week, we will know the outcome of the deliberations of the European Central Bank. The majority of forecasters expect an announcement on their QE programme, with a EUR20 billion or EUR30…
Actively Riding the Wave of ‘Creative Disruption’ For Professional Investors Only
Inspired by economist Joseph Schumpeter’s concept of “creative destruction”, the unspoken theme of Allianz Global Investors’ most recent Investment Forum seemed to be “creative disruption”. Session topics devoted to three types of disruption – technological,…
European Equities: Back to School
September in the Northern Hemisphere tends to be the beginning of the new school year. This year there seems to be a large amount on the ‘curriculum’. Starting with Brexit, the temperature is rising as…
Five reasons to consider European equities For Professional Investors Only
The “United States of Europe” (USE) has been a work in progress since the end of World War II, when the region started the long, painful task of reunification and rebuilding. Now, with fallout from…
The Euro is at a Very Interesting Juncture
The bond markets are having a bit of a hissy fit, and as noted last week, this seems to be primarily driven by a position adjustment as speculation rises about the ECB’s normalisation path. We…
Europe: As the Politics Subside
Might Europe be the place to be? I think European equities tick a lot of the right boxes right now. Economies are recovering – indeed the first quarter of 2017 saw Europe once more grow…
The Centre Holds
Alex Scott, Deputy Chief Investment Officer. 11 May 2017. Investor attention has been dominated by political risk for the best part of a year. Now, however we see signs that we might be passing the…
Week in review: on the hustings
And then there were two. The first round of the French presidential election on Sunday failed to deliver an overall majority for any of the 11 candidates, meaning there will be a 7 May run-off…