Whether using bond funds or investing directly, bond investing requires thinking about the outlook for interest rates, inflation expectation, credit spreads and currency direction (if applicable) and how those variables impact bond valuations.
Read the article in FT Adviser [5min read, open as pdf]
[5 min read, open as pdf]
Central Banks' policy rates are expected to pivot towards cuts in 2024 with a material impact on asset class perspectives.
Read the full article in FT Adviser [3 min read, open as pdf]
[1 min read, open as pdf]
Higher interest rates following increases in the Bank of England “Bank Rate” means yieldson cash are attractive once again. There are different ways to access cash yields: bank deposits, platform cash and moneymarket funds each have advantages and disadvantages. Minimising frictional costs, and maximising flexibility is key when developing a cashmanagement strategy, in our view.
In this research note for our clients, we explore the role of money market funds in providing a low risk platform-based Investment with a yield similar to Bank of England rates. Further reading: Read our October 2021 comparison of money market funds and fixed time deposits
Read the full article here [3 min read] [5 min read, open as pdf]
[5 min read, open as pdf]
Wealth Manager's Ross Miller chats to Elston Consulting's Henry Cobbe. They discuss the return of yield and how it plays out across equities, bonds and alternatives.
Listen to the podcast NMA speaks to investment consultant Henry Cobbe about positioning equities for higher inflation using sector and factor equity investing.
Listen to the podcast [5min read, open as pdf]
[5 min read]
1. Yield is back: for equities, bonds and alternatives - the yield drought is over 2. Selectivity matters more: within and across asset classes 3. Inflation is getting stickier: getting past the peak, but still a problem Read the summary article Find out more:
[3 min read, open as pdf]
[5 min read, open as pdf]
The thirty-year anniversary of Black Wednesday was marked by the Sterling reaching its lowest levels against the dollar since 1985. Part of this is a function of dollar strength against global currencies, another part about rising concerns on the UK economic outlook and future policy-making. Sterling’s weakness and outlook is forcing investors to consider how to manage currency risk in their portfolio across each asset class. Full article available as pdf [5 min read, open as pdf]
With low growth, soaring inflation and spiking interest rates, advisers need to rethink the definition of risk. Focus on volatility is focus on the “wrong problem”. Instead, advisers should focus on preserving purchasing power (mitigate inflation risk) to protect client outcomes. That requires a fundamental rethink around traditional definitions of risk, asset allocation and diversification. For full article including charts, open as pdf [3 min read, open as pdf]
Latest UK inflation figure The latest UK inflation came in at 10.1%yy for June 2022, compared to 9.3%yy survey estimate. This is up from 9.4%yy last month and is above expectations. This is the highest UK inflation rate in 40 years, and now in double digits. Food prices rose meaningfully, especially bakery products, dairy, meat and vegetables, and this was also reflected in higher takeaway-food prices. Inflation pressure has not yet peaked with Bank of England expecting 13% in 4q22 (from 11%) and a further step-up in the retail energy price cap. The BoE remains behind the curve, in our view. See full article including all charts |
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