Industry news and views from Panacea and our partners.
Investment Commentary_
Aviva Investors: Taming of the few
Regulatory authorities around the world are targeting the big US tech giants. However, while investors need to keep a watchful eye on developments, Big Techs stranglehold and influence on numerous economic sectors will be hard to loosen.
Jupiter: Engagement: an open discussion on the critical role of ongoing corporate engagement and policy work
What is our philosophy behind engaging companies? Participating in our Sustainable Investing Academy series, Edward Bonham Carter, Ashish Ray and Andrew Mortimer explain our approach to governance that takes into account the interests of competing stakeholders and how its an evolving and continuous process. We are pleased to share the full-length video recording of the event below.
Orbis: Unpacking the risks from regulatory change
For Chinese companies, regulatory change is a perennial risk. This month, the government gave investors a stark reminder of that risk when it announced sweeping changes to Chinas online tutoring industry.
Aviva: Quantum Leap
Quantum computers have the potential to shake up finance, cybersecurity and other sectors. But investors hoping to profit from the new technology must be patient and separate reality from hype.
Aviva Investors: The Anti-Social Network
Facebook, Twitter and other platforms are drawing criticism for their failure to tackle hate content. But will the hit to their reputation do any lasting commercial damage?
J O Hambro: A View from Asia
July was challenging for investors in Asia and Emerging markets.
J O Hambro: UK Equity Income Bulletin
An update from the JOHCM UK Equity Income team in a positive month for the Fund, despite the macro headwinds.
J O Hambro: Under the Bonnet
The UK Dynamic team take a look at a positive month for the Fund in July.
J O Hambro: Emerging Markets Spotlight
As vaccination rates increase, it is possible to start considering what a post-Covid world might look like.
J O Hambro: Methane: cows, hydrogen and the future of the Arctic
The first in the Regnan Radar series looks at methane, which accounts for 23% of greenhouse gases and is the largest contributor to climate change after carbon dioxide.
J O Hambro: Catalysing Sustainable Agriculture and Food Production
Transitioning global agricultural and food production systems to feed the planets rapidly growing population, estimated to reach close to 10 billion people by 2050, is one of the most pressing sustainability challenges faced by humanity.
Aviva Investors: China's Big Tech crackdown
Like Washington and Brussels, Beijing is worried about the growing power of large technology companies. But Chinas regulators are taking swifter, more radical action than their peers in the West.
Aviva Investors: Climate technologies
No single technology is enough to tackle the climate crisis, a global and systemic issue that requires joined-up thinking. We flag different pathways to address warming gases in the atmosphere five nature-based and five technical and ask what steps are needed next.
Aviva Investors: Food for thought: EMD and the threat of inflation
Emerging market debt investors need to keep a watchful eye on food price inflation as a potential key driver of monetary policy, especially as this has not coincided with a weaker US dollar, argues Nafez Zouk.
Rathbones In the KNOW blog: Lego, bricks & mortar
Kids building blocks and workplaces both offer a chance to learn. Senior multi-asset investment specialist Craig Brown makes a case for the office while tripping over his sons toys.
T. Rowe Price: Biden Signals Government-Wide Push to Promote Competition
Executive order could encourage regulators to address concerns about consolidation and competition in a range of industries.
Aviva Investors: Beyond COVID policy-led reflation: House View Q&A (Q3 2021)
We recently published our House View Q3 2021. Michael Grady (MG), Head of Investment Strategy and Chief Economist and Fabio Faltoni (FF), Multi-asset & Macro Investment Director discuss our latest economic outlook and its implications for global investment markets.
Aviva Investors: Multi-asset allocation views: Moving short on duration
A strong economic recovery and continued reflationary bias from the Federal Reserve could push long-dated yields higher on US Treasuries, says Sunil Krishnan.
Aviva Investors: A tale of two hemispheres
While much of the developed world appears to be on the road to recovery, aided by the rapid roll-out of vaccines, the outlook for many poorer countries is far less favourable, says Ian Pizer.
Rathbones - The Sharpe End podcast: Episode 2
In the second episode of The Sharpe End, David, Will and Craig discuss the rationale behind Chinas intervention in technology and education markets, along with the potential for contagion into other sectors. Also, has UK commercial property hit its bottom? And should they worry about the recent jump in Dexcoms share price?
Jupiter: The art of fundamental sustainability analysis
At a time when the imperative for sustainable investing been higher, Freddie Woolfe explains what fundamental sustainability analysis really entails.
Jupiter: Active: the art of fundamental sustainability analysis
What factors do sustainability analysts take into account, and where do they get their information from? In the second of our Sustainable Investing Academy events, Freddie Woolfe, equities analyst for Jupiters global sustainable equities strategy shares his insights into what fundamental sustainability analysis really entails.
AX IM: How the pandemic has given a new meaning to ageing
Within the next 20 years, the number of people in the UK aged 65 and over is set to increase 40 per cent.In the US, Europe and Japan, it is a similar story: people around the world are living longer than ever before.
AXA IM: Alzheimer's breakthrough could drive a new wave of biotech innovation and investment
The accelerated approval of the first new Alzheimer's treatment in almost two decades looks set to be a potential game changer for the biotechnology sector. Alzheimer's disease is a type of dementia that affects memory and other cognitive abilities. Globally, around 50 million people suffer from dementia; there are almost 10 million new cases annually - and Alzheimer's is the most common form.
AXA IM: What does the delayed reopening mean for UK shares?
Despite being technically able to trade, June has brought a raft of difficulties for businesses in sectors such as tourism and leisure sector. A delay to the lifting of COVID rules means pubs and businesses continue to face tough trading, while the decision to move Portugal to the Amber travel list has damaged public confidence in overseas holidays, possibly with implications for the rest of the summer.
AXA IM: Can ESG screening provide a buffer for fixed income investors?
The unprecedented monetary and fiscal stimulus put in place by governments and policymakers worldwide has supported bond markets for much of 2020 and 2021, but fixed income investors have faced challenging, volatile times nonetheless.
AXA Investing in high yield bonds
The high yield market has developed significantly over the past two decades, particularly with the emergence of European and Asian high yield markets. We believe the high yield market will continue to evolve, particularly in response to the Responsible Investment movement and the development of low carbon or green bond markets.
AXA IM: Time to think about the downside
Never be short duration for too long, be wary of risk assets when they are too expensive, always assume the England football team loses. Those three assumptions have served us pretty well over the years and into 2021, but before we get to bond land, congratulations to Italy on their hard-fought victory.
AXA IM: M&A: shuffling the pack in UK equities
M&A activity has been a welcome tailwind for UK equities this year. According to the FT, 2021 is on track to be the busiest year for private equity bids for UK and European assets on record, with private equity groups setting up new teams specifically to acquire UK-based businesses.
Rathbones In the KNOW blog: Is China going local?
In case anyone forgot that China was supposed to be communist, the worlds largest market dropped a hammer on its technology and education sectors. David Coombs, our head of multi-asset investments, reviews his Chinese exposure.
Columbia Threadneedle: Credit Threads #1: Financial conditions
In the very first episode of our new fixed income podcast, Credit Threads, our bond specialists discuss how central banks respond to financial conditions, how they impact fixed income investing and how fund managers factor financial conditions into their decision-making.
Jupiter: Generating alpha for planet, people and profit
Sustainability is at the core of the debate among policy makers and asset managers now, thanks to mounting environmental risks and a sharp focus on social issues.
FundsNetwork: Working with you in challenging times
Jackie Boylan, Head of Fidelity FundsNetwork, reflects on the last 12 months, how we all reacted to a different way of working and what FundsNetwork introduced to cater for their clients immediate needs. Jackie also touches on further improvements that are on the horizon.
T. Rowe Price: Global Asset Allocation: July Insights
Global economic growth to remain strong through the back half of the year, albeit off peak levels, as monetary and fiscal policy support moderates from crisis-level highs.
M&G: Impact Equities team: Sustainable economic cycles
Please find below a note from the Impact Equities team exploring the idea of sustainable economic cycles, as governments, companies and investors are increasingly shifting towards sustainability and impact.
M&G: (CapEx)pectations
Stronger economic data and robust earnings growth are driving increased confidence in a more sustained recovery. With this backdrop, how are companies positioning themselves for the post-lockdown 'new normal'? Investment Specialist, Kirsty Clark reviews recent market performance and looks at capital spending intentions to meet growing demand and changing consumption patterns.
Aviva Investors: Systems rationality: Post-lockdown commuting, herding and real estate debt lessons
Herd-like lending behaviour is counter-productive and exacerbates real estate risks. Gregor Bamert argues a wider range of capital sources and investment approaches may help combat this in future.
Orbis: The case for the not so boring middle
The past few quarters have seen a shift in market leadership, with technology stocks giving up ground to other, more cyclical sectors, prompting many to ask: was that it? Was that the turn we have been waiting for? And, if so, is there any further to run?
Rathbones In the KNOW blog: Without good governance, 'ESG' falls apart
Responsible investing and capitalism itself are doomed to fail without good corporate governance, argues Rathbones stewardship director Matt Crossman. Its the artful science of ensuring company managers are in step with other stakeholders interests.
Jupiter Merlin Weekly: Has the Fed moved the monetary goalposts?
The Merlin team discuss the Federal Reserves shift in policy, political arguments in the US and EU, and ask what happens beyond the Covid economic recovery.