The FCA recently implemented the Sustainability Disclosure Requirements (SDR) – a package of measures designed to improve transparency in sustainable investing and crack down on greenwashing within the industry. What are the new rules and what does this mean for investors and advisers?
In June’s edition of Investment Perspectives, we talked about what was happening in the UK stock market and considered how the political landscape might affect its trajectory. Four months on and post the UK election, has the market experienced a turnaround or are we still waiting for that defining moment?
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
Many of us have felt the pressure of prevailing high interest rates over the last few years but it looks like there is light at the end of the tunnel so it’s time to consider whether the message has changed from central banks and what the expectations and implications of the new lower rate environment will be.
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
The 2024 US election landscape has been marked by dramatic twists, including the attempted assassination of Donald Trump and Joe Biden’s withdrawal from the presidential race. With Biden’s full backing, Kamala Harris was swiftly positioned as the Democratic candidate for the November election, setting the stage for an intense and highly competitive race.
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
The US economy has continued to drive the path of stock markets in the developed world with US interest rate policy remaining at the forefront of investor attention. The mid-June Federal Reserve meeting saw the US central bank publish its latest Summary of Economic Projections (SEP) and Chair Powell outlined the Fed’s thinking on the economy. The overall message portrayed an economy with continued strong fundamentals which had continued to make progress towards the Fed’s dual mandate of maximum employment and stable prices over the past two years.
From 1979 to 2018, China's annual real GDP averaged 9.5% meaning that China has been able to double the size of its economy in real terms every eight years. Driven by industrial production and manufacturing exports, it’s no surprise that China's economy has grown to one of the largest and most powerful in the world over the past few decades and since the late 2010s and into the 2020s, China has been described as a superpower, posing the most significant challenge to the US of any nation-state in the world.
UK equities have been creating considerable noise in the news recently so what exactly is going on with the UK stock market? On the one hand, the FTSE 100 reached a new all-time high in May and sentiment among market participants appears to be good but on the other, UK equity funds are still unloved and undervalued compared to their global and US peers.
Since 2012, the Federal Reserve has targeted an inflation rate of 2%. Keeping inflation low is one of the Fed's dual mandate objectives, along with stable and low unemployment levels. Central banks have a degree of independence, but central bankers talk to each other, and US monetary policy can affect and lead other parts of the world.
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
As we say goodbye to the old tax year, and hello to the new, investors and savers will most likely be considering how to make the most of their tax-free allowances. Outside of pensions, the standard UK tax-free wrapper is of course the much-loved ISA (Individual Savings Account) which was launched in 1999 and turned 25 this month.
To deliver long-term performance, investors need to have a robust process or framework of market analysis to work through. We have always believed that, to reduce the impact of market noise, investors need to focus on fundamentals, valuation, and sentiment. By and large, economic fundamentals remain positive with inflation continuing to moderate, albeit with a few bumps in the road, but economic growth and prospects for corporate earnings are positive.
Introduction
With a favourable economic background of inflation cooling (albeit slowly) and the prospect of lower interest rates, global stock markets recorded their best first quarter performance in five years. Investor confidence grew that the US would achieve the elusive ‘soft landing’ as economic data, especially the jobs market, has remained robust even after the Fed’s rate tightening cycle. Some parts of the market have been buoyed with enthusiasm about the potential for artificial intelligence.
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
The debate over the pros and cons of active and passive investment management began decades ago and can still passionately divide the investment community but with the option to blend the two approaches, why argue for one or the other when you can have a foot in two camps and achieve the best of both worlds?
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
