Industry news and views from Panacea and our partners.

Investment Commentary_

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T. Rowe Price: How Value Can Benefit From a New Investment Cycle


The changing of the guard in terms of value versus growth has been attributed to the post?pandemic recovery, decade?high inflation, and the potential for aggressive monetary tightening. However, as bottom?up investors, we are excited about the potential for a new capital investment cycle forming after many years of underinvestment. For value investors, this is a positive development, as increased spending can be a significant source of investment opportunities.

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Rathbones In the KNOW blog: How many possible futures are you prepared for?


The world has fundamentally changed, argues Rathbone Income Fund co-manager Carl Stick. Higher interest rates and higher inflation mean that cash earned today rather than tomorrow has become much more valuable.

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Fidelity Adviser Solutions: The new Consumer Duty: webinar replay


In their latest webinar, Fidelity Adviser Solutions' Paul Richards is joined by Chris Davies of award-winning RegTech provider Model Office and Alex Whitson of VouchedFor, the UK’s largest review platform for financial advisers. They examine what the new rules mean for your firm and the action you may need to take.

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Schroders: What should I consider when investing in alternatives in my multi-asset portfolio?


When considering which alternatives to add to a portfolio you should start by defining the objective that you want to achieve.

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Columbia Threadneedle: Is Sterling doomed?


Kwasi Kwarteng’s ‘budget in all but name’ has not been received warmly in financial markets. The energy price cap scheme likely means we’ve avoided a near term recession but the cost in terms of extra government borrowing is huge, with the Chancellor doubling down with tax cuts that raised borrowing even further. Just how far is anybody’s guess as he prevented the Office for Budget Responsibility (OBR) from working out the numbers properly. My guess is that the OBR would have forecast even bigger budget deficits. For example, the direct cost of the higher rate tax cuts is £6bn but the new Chancellor has assumed that ‘behavioural changes’ would reduce that to £2bn. This seems unlikely.

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Columbia Threadneedle: The power of financial inclusion


Emerging markets are home to nearly of all the world’s unbanked population. According to data published by the World Banki, those without access to financial services are most likely to be the very poorest households, young people and those who have received the least education.

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M&G: Investing in infrastructure amid soaring inflation


What a difference a year makes. If in the summer of 2021 consumer price increases were considered a temporary phenomenon and not much to worry about, this year it is hard to ignore the pinch of the rise in the cost of living. Rising inflation has hurt stockmarkets as well, and investors are searching for assets that could potentially withstand better than others the corrosive effect of generalised price rises.

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A simple theory: Einstein’s lesson for investors


Albert Einstein observed that simple is often best. Here, Baillie Gifford’s Robert Baltzer explains why this is true when it comes to investing in high yield bonds. Capital at risk and income not guaranteed .

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Schroders: Podcast: Dealing with the strengthening dollar


Fund manager Robbie Boukhoufane joins the pod to discuss why the dollar is set to remain strong, its effect on the global economy and how investors might deal with it.

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Baillie Gifford: Growth Investing: why the hunt for outliers remains compelling


Stuart Dunbar, partner at Baillie Gifford, explains why growth investing is as important as ever. Capital at risk.

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Baillie Gifford: Register for the Baillie Gifford Japanese Fund webinar


Join fund manager Matthew Brett and investment specialist Thomas Patchett for an update on the Japanese Fund. They will explore the environment for growth investing within Japan, and the opportunities that are arising. Capital at risk.

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Fidelity Adviser Solutions: UFPLS withdrawal and the annual allowance tax charge


Paul Squirrell, our pension expert, answers the latest question raised via our Pension forum. He considers whether an annual allowance tax charge applies to contributions made to a client’s pension in the same tax year as an UFPLS withdrawal was made. The contributions were in excess of the MPAA.

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Jupiter AM: When safe havens are hard to find


Traditional portfolios allocated only to equities and bonds may not always provide the diversification needed. A permanent allocation to alternatives with low correlation can help.

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Jupiter AM: Jupiter Merlin Weekly: ‘Black Wednesday’, or ‘Liberation Day’?


The Jupiter Merlin team look back at ‘Black Wednesday’ 30 years on, and ask whether it represents an economic calamity or a fortuitous dodging of an economic bullet.

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T. Rowe Price: Global Asset Allocation: September Insights


While seeing increasing evidence of moderating inflationary pressures in some countries, central banks likely to remain steadfast in tightening policies as inflation is not likely to return to target levels in the near term.

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Orbis: Positive energy: A contrarian take on transition


When demand outstrips supply, prices rise. Higher prices encourage companies to invest in more production. They inevitably overinvest, and so supply outstrips demand. That pushes prices down, and so the whole cycle starts again.

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Orbis: Buy cheap, stay humble


Having waxed the car, the man went inside, sat down, and gazed through the window at the sky. He listened to the birds for a minute, then walked to the window to admire his work. Only then did he worry, because now he saw where the chirps were coming from—a well-fed flock perched directly above his car.

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M&G: Fixed income outlook - Is it time to consider debt market opportunities?


In this update, Jim looks back at recent developments in bond markets and considers some of the themes such as inflation and central bank policies that are likely to dominate markets in the coming months.

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M&G: A Multi Asset Approach To Navigating The End of 2022


It has been a challenging year for markets so far, and the recent “summer lull” rebound in equity and credit markets is raising more questions than answers for investors positioning their portfolios ahead of the end of 2022.

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M&G: Are we there yet? Episode 3 - A different take on diversification


Diversity is the name of the game these days, and rightly so. But creating a fully inclusive environment requires more than gender quotas and sententious rhetoric – it’s time to put pretty words into action.

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Columbia Threadneedle: Capital with purpose – impact investing in listed equities


Faced with complex global issues like climate change the definition of impact investing needs to expand. Our Global ESG Equities Team argue the case for making a positive difference through investment in public equities.

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Columbia Threadneedle: Will the UK avoid recession?


Last week we lost our dear Queen. A sad time indeed. We gained a new Prime minister and a massive new package of energy support. This week’s video will look at the implications for the UK economy, sterling and government bonds yields.

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Columbia Threadneedle: Smart Choices for a Smarter Future


On 13 July 2022 the F&C Investment Trust (FCIT) held its bi-annual lecture. Established over 150 years ago, FCIT is the oldest investment trust in the world. Part of its enduring success is down to its forward-looking approach and an appreciation of how the future should be considered today.

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Columbia Threadneedle: Income investing – a return to form


With rising dividends and bond yields higher, the outlook is looking brighter for income investors. We explore how income streams are picking up across asset classes – both traditional and alternative – and assess the prospects from here.

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Columbia Threadneedle: The 2022 US Proxy Season: Emerging ESG-related matters in the US market and what it portends for 2023


This past proxy season was touted as one for the ages vis-à-vis volume of ESG-related proposals. It did not disappoint. According to Georgeson, over 900 ESG-related proposals were filed for proxy season 2022. Of those, over 600 were placed on annual general meeting (AGM) dockets, compared to roughly 400 in 2021.

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Rathbones - The Sharpe End podcast: The Jackson Dive


Have US Fed Chair Jerome Powell’s comments at Jackson Hole spooked the team as much as they spooked the market? This month, David, Will, and Craig also discuss how much attention to pay to the weakening US housing market, and finally touch on the video game industry and how it should remain an exciting place to invest for many years to come.

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Baillie Gifford: Infrastructure: seeking resilient income in tough times


Why investing in infrastructure for our greener future could also protect you against inflation. Baillie Gifford’s Gemma Wright explains how. Capital at risk.

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Jupiter AM: Human investing with computer help


Matus Mrazik explains how the Jupiter Systematic Equities team’s investment approach uses computer help in what is ultimately a human process.

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Baillie Gifford Global Discovery: A decade of growth investing


The Global Discovery mission to capture opportunities in the enduring cycle of innovation has made for a fascinating ten years. But the team believes that the next decade looks even more exciting. Capital at risk.

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M&G Episode Income Fund - August update


2022 has been a very challenging period for investors; are we through the worst of it? Hear the latest from Steven Andrew, fund manager of the M&G Episode Income Fund.

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M&G: Conflicting forces obscuring the direction of travel


Both equities and bonds rallied in July as cooling economic data saw markets price in a less aggressive pace of rate hikes. Despite the hopes, the economic reality of high inflation and rising recession risk is creating a more pronounced challenge for central banks globally. Investment Specialist, Kirsty Clark reviews recent market performance and comments on the conflicting forces creating ongoing uncertainty.

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Sustainable Fixed Income Investing at M&G


Our sustainable fixed income range covers the key sub-asset classes and is designed to provide clients with a suite of core sustainable fixed income solutions, encompassing investment grade, high yield and emerging market bonds. We also offer a flexible sustainable bond strategy, where the fund managers are able to invest across the fixed income spectrum and to adjust portfolio positioning at different phases of the economic cycle.

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Aviva Investors: Real assets in focus


In this month’s instalment of our visual series on topical themes, we look at some of the key recent trends in the real asset universe.

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Aviva Investors: The burning issue


How can we face existential problems and stay positive? Abigail Herron contemplates simple steps to protect momentum and avoid burnout.

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Columbia Threadneedle: Energy bills rise in Europe but fall in the US


This week we’re going to discuss the extraordinary divergence in energy prices between the US and Europe. We’ll suggest that the prospect of sky-high prices for natural gas this winter look set to mean recession in Europe and the UK.

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Columbia Threadneedle: Jet zero – how investors can get on board for the long haul of aviation decarbonisation


After the COVID-19 pandemic grounded the global aviation industry in 2020, airlines and investors are keen to see passenger numbers take off again. However, as passenger numbers are starting to rebound, so too are the industry’s carbon emissions.

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T. Rowe Price: Why Active Duration Management Matters


Having the flexibility to shift duration within a wide latitude enables us to be dynamic and to adapt quickly to different market environments, such as rising rates.

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Jupiter AM: Notes from the Investment Floor: Investing in Asia, but avoiding China


Jason Pidcock explains why investing in Asia doesn’t have to mean China, and discusses where he believes many of the most attractive Asia Pacific opportunities can be found.

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M&G: Earnings turning?


Markets provided few safe havens in June, with the dual threat of inflation and slowing economic growth weighing on sentiment. With much already priced in, have markets found a floor? Investment Specialist, Kirsty Clark reviews recent market performance and comments on earnings growth expectations as we head into another earnings season.

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Columbia Threadneedle: UK small and mid-cap: for the rebound and beyond


It might be a cliché, but history does repeat itself. Investors are always too fearful approaching the bottom of a cyclical downturn and miss opportunities that in hindsight are obvious. But fundamental and empirical evidence discussed here suggests we are within range of one of the best opportunities in UK small and mid-cap in a decade

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