Industry news and views from Panacea and our partners.

Investment Commentary_

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AXA IM: Growth is what you buy, value is what you get


Fortune has favoured the value investor over the past six months or so. The announcement and subsequent rollout of vaccines has led to a sharp outperformance for value stocks since the end of October 2020, with sectors such as banking, energy, mining and tourism & leisure making up for poor performance from the initial impact of COVID-19.

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Aviva Investors: Rating game


Unlike liquid markets and real estate, a lack of publicly available data has made assessing risk more challenging for infrastructure equity assets. Laurence Monnier considers the options for investors looking to complement qualitative assessments with quantitative rigour.

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AXA IM: What a statue of the G7 leaders tells you about sustainable investing


The G7 Summit was held in Cornwall recently, with leaders promising to focus on climate change. While most of the talking appears to take place in the run-up to these events rather than during them, they do offer a focal point for campaigners on various issues.

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Jupiter: Silver: A Populist Metal for a Populist Era


Ned Naylor-Leyland, Head of Gold & Silver, discusses the growing demand for silver and its traditional role as the populist monetary metal.

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Rathbones In the KNOW blog: Is the post-COVID rebound peaking?


Tougher times may lie ahead, but we believe the cyclical rally has further to run.

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T. Rowe Price: Gains still to be found in Chinese equities


China’s economy is on the right track to recovery in 2021. We expect the Chinese consumer to play a bigger role this year, thanks to pent?up demand. Successive holidays and festivals have been accompanied by improving consumer confidence.

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Columbia Threadneedle: Covid-19 index: when might life return to ‘normal’? – July 2021


As one of the world’s largest economies the US is a key focus for investors. With every country attempting to return to normality following the coronavirus pandemic, we are monitoring when US economic activity might get back on track, as well as other measures of “normality” such as entertainment and leisure, high street shopping, and schools reopening. The result is an index that measures progress toward a post-pandemic world

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Jupiter: Credit ratings: back in the spotlight?


There was a relatively brief period, in the depths of the global financial crisis, when the reliability of credit ratings – those apparently simple, shorthand codes representing a credit rating agency’s assessment of the risk of lending to a corporate, government or quasi-government borrower – was repeatedly called into question.

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AXA IM: The issue with passive fixed income


Many investors are reliant on fixed income securities to meet their long-term need for stable, income-generating assets. Often, that reliance extends to securities of traditional fixed income indices, bringing a series of risks into play for institutional and smaller investors alike.

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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.

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Scottish Mortgage Webinar – Embracing the Extraordinary


Join investment specialist Claire Shaw as she speaks to James Anderson, Tom Slater and Lawrence Burns in the first-ever investor event with all three Scottish Mortgage managers. Capital at risk.

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Jupiter Merlin Weekly: Is net-zero by 2050 good enough?


A court has ruled against Royal Dutch Shell’s carbon emissions plan based on the Paris Climate Accord. The Merlin team give their view on the implications.

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Aviva Investors: Tesla, the halo effect and reasons for CEO departures


In the latest instalment of our visual series on topical data themes, we look at Tesla’s market cap relative to the European “Big Five” carmakers, the average CSR spending of FTSE 100 companies versus their procurement budget and the most common reasons for a CEO to leave a company.

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AXA IM: Global short duration bonds to combat rising rates


The AXA Global Short Duration Bond Fund may suit investors looking for better returns than cash by taking an intermediate step into riskier assets while reducing sensitivity to rising interest rates. With the global economy recovering rapidly from the impact of COVID-19, central banks are likely to tighten monetary policy in the coming years.

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Rathbones In the KNOW blog: A changing tide


The looming Olympics must be on the mind of our head of multi-asset investments David Coombs, as he discusses the outlook for the UK.

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Columbia Threadneedle: Fashion eyes sustainability via the circular economy


The textiles industry is one of the most pollutive in the world, emitting more CO2 than aviation and shipping combined. But a leading sports firm is showing one way the sector can embrace radical change

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Jupiter Asset Management: No more waiting: it’s time for change


In the next few years, there will be a profound change in the way people think about this planet, their place on it, and their relations with each other. The change will have huge consequences for all aspects of our way of life, including investment.

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Rathbones In the KNOW blog: The snowball effect


Fund manager David Harrison explains how the UN Sustainable Development Goals, which began life as an aspirational target for governments around the world, transitioned to an unofficial framework for ESG investing. But can they really make a difference?

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Square Mile’s Sustainable Solutions


Awareness and appetite for sustainable investing is on the rise. There is an increasing desire from investors to allocate their money to causes which contribute to a responsible, healthier and more equitable society by tackling social and environmental challenges, whilst also meeting their financial needs.

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Wizard Learning update


The R06 Expected Solution for the July exam is now available for immediate download. There are 15 pages of expert analysis for case study 1 and 15 pages for case study 2, as well as 12 pages of generic information on questions that may be asked.

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M&G: Why impact investing is not charity — and five other myths


Investing for impact is not only truly exciting, it also has terrific potential to address some of the world’s greatest challenges. It would therefore be a shame if its growth was held back by common misconceptions.

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The M&G Better Health Solutions Fund - Answering the five key questions


Watch Jasveet Brar, Fund Manager of the M&G Better Health Solutions Fund, introduce this fund and answer five key questions.

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T. Rowe Price - Value in emerging markets: will history rhyme?


History doesn't repeat itself, but it often rhymes". 22 years ago Value investing was declared obsolete, what followed was a decade of Value outperformance in Emerging Markets.

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Columbia Threadneedle: Is the bond broken?


An allocation to government bonds within a multi-asset portfolio has traditionally played a vital role in terms of risk management and diversification. However, the decadelong bull era in both government bonds and equities has led investors to ask whether this assumption is still valid. Additionally, near-zero yields across the globe bring into question the cost associated with this diversification benefit.

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Columbia Threadneedle: Japan’s software revolution is making up for lost time


The use of software solutions by companies to improve competitiveness, efficiency and productivity, and reduce costs, is picking up pace – just in time, as a shortage of skilled workers continues to bite.

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Rathbones In the KNOW blog: Welcome to the big leagues


Just a few short years ago, only those in the know were talking about sustainable investing. Today it seems to be everywhere. All that’s missing is a global standard for measuring a company’s ESG performance, says David Harrison, manager of the Rathbone Greenbank Global Sustainability Fund.

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Columbia Threadneedle: Electric vehicles help power growing decarbonisation trend


It is not often that Europe leads the US on product adoption, but it is clearly miles ahead when it comes to the adoption of electric vehicles (EVs). Much like the adoption cycle of mobile phones and other technologies in recent decades, EV adoption is being led by the Scandinavians. While Norway is exceptional, will the rest of the world be where Sweden is in five years

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Columbia Threadneedle: Covid-19 index: when might life return to ‘normal’?


As one of the world’s largest economies the US is a key focus for investors. With every country attempting to return to normality following the coronavirus pandemic, we are monitoring when US economic activity might get back on track, as well as other measures of “normality” such as entertainment and leisure, high street shopping, and schools reopening. The result is an index that measures progress toward a post-pandemic world.

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Columbia Threadneedle: Funding Europe’s green infrastructure finance gap


Responsible Investment has witnessed strong growth over the past five years. However, the past six months have seen it embark on a much steeper trajectory.

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Jupiter Asset Management: Macro, Markets and ESG


Please join John Chatfeild-Roberts, Algy Smith-Maxwell, Alastair Irvine and other members of the Jupiter independent funds team as they provide fast insights into macroeconomics, the outlook for markets, global vaccine programmes and the Biden White House. Edward Bonham Carter also joins the discussion as the team share their views on environmental, social and governance issues.

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Jupiter Merlin Weekly: Biden breaks new ground on Covid vaccine patent suspension


Biden’s plan to suspend Covid vaccine patents is laudable on humanitarian and pragmatic grounds, but may set a far-reaching precedent. The Merlin team give their view.

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Baillie Gifford: James Anderson - staying on the road less travelled


James Anderson, joint manager of Scottish Mortgage Investment Trust, reflects on the challenge and excitement of the search for extreme returns. In this article, taken from the latest Scottish Mortgage Annual Report, James anticipates greater change to come and urges investors to keep thinking distinctively. Capital at risk.

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Baillie Gifford: Could property be a great income investment?


Baillie Gifford investment manager Jon Stewart explains why he thinks an actively managed approach to property investing could make for a great income investment. Capital at risk and income not guaranteed.

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Aviva Investors: Home bias - The rise and rise of economic nationalism


The new US president is prepared to carry the torch for a shrinking band of globalists, but the growing trend of economic nationalism will prove hard to reverse.

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Jupiter Asset Management: Note from the Investment Floor - Momentum for change on ESG policies


Abbie Llewellyn-Waters, Head of Sustainable Investing, explains why climate change and fair working practices increasingly matter to investors.

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Aviva Investors: To improve diversity, asset managers should rip up the rulebook on recruitment


For too long, the investment industry has relied on staid recruitment methods that maintain the status quo. By doing things differently, we can improve diversity and future-proof our businesses, says Apiramy Jeyarajah.

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Orbis: Beyond the froth: The contrarian case for Comcast


The prices of stocks are easy to find, but knowing what a company is actually worth is much harder. When stripped to the essentials, however, it becomes somewhat easier to separate the froth from the fundamentals.

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Jupiter Asset Management: ESG risks for credit investors: looking beyond the acronym


Fully embedding ESG factors into a corporate bond investment philosophy means considering longer term risks to issuers that the market may currently be under-pricing – or even ignoring.

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Aviva Investors: Levelling up – How COVID 19 is accelerating a digital revolution in construction and manufacturing


The coronavirus pandemic has spurred companies to upgrade their digital capabilities, boosting productivity and creating investment opportunities in previously overlooked niches.

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Rathbones In the KNOW blog: Yes, fund manager


Once the pandemic is in the rear view, the UK has the chance to remake itself, argues our Minister for Administrative Affairs, David Coombs. Or is he our head of multi-asset investments…

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