Ninety One

As the monetary support that has lifted the UK equity market since March 2020 is withdrawn, we expect company fundamentals to be key.

Value equities remain extremely cheap, and several catalysts that could drive a value rally are lining up.

Margins are set to come under pressure in 2022, but the key is to pick those businesses still able to grow their profits.

It’s easy to get swept along with popular narratives about society’s bogeymen, like the idea that social media is a force for evil. Oftentimes, these narratives say more about us than they do about the issue in question.

A net zero portfolio is a very different thing to achieving net zero in the real economy by 2050.

Simon Brazier gives an overview of the broad offering Ninety One’s quality team provides, be it UK, global, regional, growth or income. But it’s not all about the money. As long-term investors, Brazier and his team see social and environmental sustainability as one of the key requirements for the companies they invest in.

With the average UK life expectancy being 82, one of the greatest challenges facing people living in the UK is the ability to fund a 30+ year retirement, whilst ensuring that their pension pot can support their expected standard of living.

Value equities tend to do well when prices rise. However, you don’t need to forecast inflation correctly for a well-constructed value allocation to be a useful addition to a portfolio.

If markets tend to overreact to bad news, where does that leave stocks after a year like 2020? Ninety One’s Value portfolio managers explain why value approaches could be valuable to investors next year and beyond.

John Stopford, Co Portfolio Manager of the Ninety One Diversified Income and Cautious Managed Funds, explains that even before the pandemic hit, the backdrop for financial markets and economies was unstable. Now it is considerably less predictable. Whether investors are are optimistic or not, we believe this increasingly unstable world is why defence still makes sense.

Simon Brazier, Portfolio Manager of the Ninety One UK Alpha Fund, discusses why an investment focus on world-leading companies could be ideal for the uncertain times where living through.  He is joined by Mark Colegate from Asset TV and the wider Quality investment team at Ninety One.

Income has taken a hit. John Stopford and Jason Borbora-Sheen offer a way forward through a focus on strong and sustainable income.

The impact of the coronavirus is being felt throughout the world, with global growth expectations being revised down sharply and many suggesting a global recession is now inevitable. The decision by Saudi Arabia over the weekend to slash the price of oil, following a failed attempt to get Russia to agree to supply restrictions in response to falling global demand was the tipping point for financial markets.

Alastair’s year-end desk clean uncovers some useful lessons.

The recent past has not been easy for investors in the Investec Cautious Managed Fund. Every investment approach or style experiences periods of underperformance, but that doesn’t make it easy for clients to retain their poise. We are acutely aware of the importance of ensuring investors understand what we are doing and why.

The worst drawdowns typically happen in recessions. Investors have experienced even worse drawdowns in this bull market than previous ones.