Sharing our convictions

A thorough consideration of resources, and their pricing, is a key element to a sound investment strategy. Future-proof investing requires an understanding of the world we operate in today and will inherit tomorrow. Resources, quite literally, shape that world.

For the fixed income fanatics amongst us, June was always going to be one for the books with all three of the major central banks meeting, elections, and continued data.

From the potential for maintaining a status quo that has delivered stability and decent returns in the last few years, to the risks of renewed volatility during a potential second Trump presidency, our latest article from Fixed Income on the upcoming elections in Mexico provides a comprehensive analysis.

TwentyFour Asset Management’s Chris Bowie, takes a closer look at how he is thinking about duration within fixed income portfolios and shows how following conventional wisdom on duration might prove costly for some investors this year.

Child labor and imposing unnecessary medical procedures on women were recently identified in the sugar industry in India. While multinationals such as Pepsi and Coca-Cola are not directly linked to poor labor conditions, they can affect change. As active investors, we engage with our portfolio companies on these important issues.

Quality investing in the fixed income sector is as much about making sure that we avoid the losers as it is about trying to pick the winners.

The European Central Bank (ECB) will almost certainly start their rates cutting cycle next month. Supportive inflation data and clear guidance from the governing council has driven market implied probabilities of a June cut to almost 100%, with little in the way to derail that.

The first four months of this year have seen €11.6bn in gross Additional Tier 1 (AT1) issuance from European banks, across euros, dollars and sterling markets.

Quality companies can keep pace with bull markets due to above-average profitability and consistent growth prospects. In bear markets, investors flock to quality companies as their stable earnings and strong balance sheets can minimize drawdowns. While now may be the time for quality, this style can perform well in different market regimes.

With its most recent escalation, the Israel-Hamas conflict now threatens to spread and become a broader conflict in the region.

The beginning of a new year is often when we look to change the way we behave, but how we invest can also influence our behavior. From inspiring confidence to encouraging discipline, our Chief Economist, Dr Reto Cueni examines how investing in quality can have positive effects on investor behavior.

The increasing capabilities of Artificial Intelligence (AI) have made the technology one of the most hotly discussed and debated topics in the public discourse, and its impact on multiple facets of business and society is indisputable. An open question remains: will it be a net positive or negative overall?