The Bank of England seems poised to raise interest rates aggressively to combat inflation, yet its explanations don’t square with its own forecasts and analysis. Expect fewer hikes than the market currently implies.
The years of loose money are coming to an end. That will cause some short-term upheaval in markets, but if economies remain strong stocks should soon bounce back.
Bond yields have been climbing almost as much as investors’ worry levels. Pausing to remind ourselves what central bankers are trying to achieve – and how stocks typically react – is helpful.
Join head of regional sales Ben Johnson as he introduces our latest ‘In conversation’ series. A lot has happened since the last check-in with our managers. The world isn’t yet back to normal, yet there are plenty of opportunities on the horizon. Ben explains how these videos provide a concise and pertinent overview of our funds.
Manager James Thomson explains how he picks his best ideas from around the world. As 2022 progresses, he believes we will remain in a world of unreliable growth, with the worst of the supply chain disruption behind us. This could lower the bar for earnings expectations, making for a year of explosive earnings upside, but the journey might be less than smooth.
Co-managers Alan Dobbie and Carl Stick explain why UK Equity Income could offer an antidote to the corrosive effects of inflation. Throw in better economic news, a UK stock market that’s cheap versus other major markets, and an environment where sentiment can seemingly only get better, then arguably there is a margin of safety in UK income that should warrant careful consideration by investors.
If investors are concerned about global valuations, the UK could offer a rare combination of ‘growth’ and ‘value’. Manager Alexandra Jackson explains how she is buying UK “quality growth superstars” on a postcode-driven discount. With unpredictable COVID-19 outbreaks, tax increases, Brexit wrangling and central bank tightening both here and abroad, she explains how she is navigating hurdles and finding opportunities into 2022.
Manager Bryn Jones believes credit markets will get more volatile over the next six months, driven mainly by government bonds. However, he thinks he is well positioned for this. He also discusses how his fund is meeting growing investor demand for bond strategies that meet positive social and environmental criteria, and considers the themes that excite him most.
Manager David Harrison explains how his fund aims to create long-term value for investors, society and the environment. Outlining the huge step-change as more companies truly embrace sustainability, he covers themes such as electrification and improved water infrastructure, as well as giving his take on “greenwashing”. Find out how he’s seeking out the best global companies that fulfil his fund’s rigorous sustainability criteria.