Equity income funds have fallen out of favour over the past 10 years. The low interest rate and low inflation environment that has prevailed over this period largely benefitted funds tilted towards the growthier and riskier parts of the market. Total returns have been dominated by capital growth (coming largely from price-earnings ratio expansion), with contribution from dividends making up a very small portion of total return…a historical anomaly.
A contrarian investor is an independent thinker who cares about the price they pay for an investment. They don’t mind going against the market trends and sentiments, and typically buy assets that are currently out of favour, while selling those that are popular.
Asia’s growth potential is well known. It’s supported by strong structural trends such as urbanisation, rising incomes and the growth of the middle class. China’s economic rise over the years has prompted many investors to seek broad exposure to its market through ETFs.
The last three years have been turbulent for global markets. We’ve had a new president in the US, a carousel of UK prime ministers and chancellors, the war in Ukraine, rising inflation and interest rates, and a global pandemic to name a few events which have caused uncertainty for investors.
UK growth is expected to slow in 2023 but businesses and the consumer are proving to be more resilient than the media would have us believe. Fund Manager Robin West is hopeful that, with full employment and strong company and household balance sheets, any economic downturn in the UK could be relatively shallow and short. Watch his latest video update on the UK smaller companies sector.
For the smart active investor, especially those operating in high yield markets, “second-hand” bonds can offer opportunities. Fund manager and senior credit analyst Rhys Davies shares his thoughts in this short read.
David Aujla (DA), Multi Asset Fund Manager of our Summit Growth and Responsible ranges, and Ben Gutteridge (BG), MPS Portfolio Manager, share their thoughts on the key developments of the last quarter and how they’re affecting the portfolio management of their respective products.
Head of Global Equities, Stephen Anness, believes dividends are an important consideration when investing for the long-term. Here he shares why he thinks they might become a bigger part of shareholder returns going forward.
We share our scenario analysis to help clients navigate an uncertain landscape. Our base case is that inflation has peaked – in which case we favour high yield credit and emerging market assets. Should inflation prove more persistent, with a deeper recession on the cards, then cash and government bonds are the order of the day. Read on for details – and for why we favour investment grade credit in both scenarios.
Investors are starting to consider China as a standalone allocation as the country is poised to become the largest economy in the world.
Jakarta’s infamous traffic is back, buzzing at pre-pandemic congestion levels. Over three days in Indonesia’s capital, Fund Managers Ian Hargreaves and Fiona Yang met with banks, real estate developers and conglomerates, as well as some entrepreneurial founders of companies in the fintech and EV industries.
After a savage bond selloff in 2022, investment grade corporate bonds are offering good income opportunities at attractive valuations for the first time since the global financial crisis. We discuss the asset class with our investment experts.
Politics had a significant impact on the market once again this quarter, with Rishi Sunak’s government retreating on many of the decisions taken by his predecessor.
We share our analysis of the fund’s performance in 2022 amid challenging conditions – and look forward to what could happen in 2023.
In what’s been a volatile year for equity markets, performance has varied greatly month to month. Things could be looking up though. We share our Outlook for 2023.
After a tough year for fixed income investors, yields and valuations now look more attractive than they have for a long time. We share our outlook for 2023.
Continued lockdowns in China have severely dented consumer confidence and impacted supply chains. However, recently we have seen several waves of positive news flow in China too. Fund Manager Fiona Yang shares her thoughts on Chinese equity markets and how she is thinking about portfolio positioning.
Despite the headwinds that the UK economy currently faces, it is in a far stronger position than during the Global Financial Crisis of 2008, says Robin West. Watch his latest video update on the UK smaller companies sector.
Rishi Sunak’s ‘coronation’ by Conservative MPs marks a return to economic orthodoxy. But further political instability may lie ahead . We look at what’s next for the economy including a Halloween budget and fiscal restraint.
Over the last ten years, income funds have not looked so attractive. But things are changing. If you look back over time, a pattern emerges. In periods of macro uncertainty and inflation, cash flows today are preferable to uncertain capital gains tomorrow.