Sumit Mehta

How can an overlay be best structured to offer downside protection and upside capture? 🤔 Our multi-asset solutions team describes how to use listed derivatives to implement a tactical asset allocation strategy as an overlay on top of a specific benchmark. Explore our take on overlay structuring. 👉 https://bit.ly/4erAq0t #MarketInsights #Investing #AssetManagement #Options

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Wondering what our programmes actually look like? Enter: Visionpath's brand new case studies... First up: find out how we worked with Berenberg, one of Europe's leading privately owned banks, to outline a strategy for increasing social diversity within UK financial services – including the challenge we faced, the approach we took, and the results we got. (Spoiler alert: it was a huge success.) Read the case study here: https://lnkd.in/eaNDHr4Z #apprenticeships #financejobs #diversityandinclusion

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📉 The Unwinding of QE in the UK: Implications for Macro Stability and Investment The Bank of England has been unwinding its Quantitative Easing (QE) program—now known as Quantitative Tightening (QT)—since Q4 2022. Despite a challenging backdrop of rising inflation, increasing nominal and real interest rates, domestic political turmoil, weak economic growth, and growing indebtedness, QT has proceeded remarkably smoothly so far. However, as we detail in our latest publication with the National Institute of Economic and Social Research (NIESR), the future may not be as benign as the recent past. Here's why: 🏦 Shift in Debt Holdings: As the Bank of England reduces its holdings of UK government debt, a greater reliance on private capital—especially from foreign investors—will be necessary to fill the gap. This shift could lead to increased volatility in UK interest rates and Sterling, as investors, accustomed to years of abundant liquidity, may react unpredictably to tighter monetary conditions. Such instability could trigger episodes of financial stress. 💷 Public Debt Risks: The UK's growing reliance on debt to finance operating expenditures, at the expense of investment, further weakens an already fragile fiscal position. This not only undermines the government's credibility as a borrower but also jeopardises private non-financial investment. The combination of rising debt and QT heightens the UK's vulnerability to market shocks. In our view, there isn't a single solution to rehabilitate the UK's weak macroeconomic environment. Instead, a multi-faceted approach is needed: 1. Cautious QT Implementation: Reassess the speed of QT and consider contingency plans to stabilise financial conditions if needed. 2. Strengthen Investor Confidence: Develop a stable financial and fiscal environment that reassures foreign investors. 3. Sudden policy shifts and politically driven announcements that lack economic substance can undermine the UK's credibility as a borrower. 4. Rebuild the Domestic Investor Base: Focus on growing the long-term capital pool within the UK, encouraging investments that support domestic economic growth. 5. Prioritize Investment in Fiscal Policy: Shift the focus from current expenditures to investment, particularly in infrastructure, to enhance productivity and long-term growth. For a deeper dive into these recommendations, check out our full piece below. A big thanks to the National Institute of Economic and Social Research (NIESR) for partnering with Uncompromised Research on this crucial topic, and to Agrima Tewari for her invaluable contributions to our research. https://lnkd.in/ewE-WfbW #interestrates #monetarypolicy #inflation #invetment #UK #gilts #QE #QT

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Hear our Portfolio Manager, Hari Balkrishna discuss three years of Global Impact Equity. Hari delves into key themes like decarbonisation, financial inclusion and AI and provides his view on the outlook for impact investing (Video is English only): https://lnkd.in/dPquMTpF For professional investors.

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Yesterday's budget was an attempt to break the UK's fiscal dilemma to increase investment and break a cycle of low growth and high debt. We evaluate "Reeves' Keys" to break the fiscal dilemma in this report by our economics team Caspian Conran, Nick Forrest, and Maddy Binns. #UKEconomy #BudgetReaction #BudgetAnalysis

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𝐄𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠 𝐆𝐫𝐞𝐞𝐧 𝐅𝐥𝐨𝐰𝐬, 𝐐𝟏 𝟐𝟎𝟐𝟒: 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐁𝐮𝐜𝐤𝐬 𝐭𝐡𝐞 𝐓𝐫𝐞𝐧𝐝 Q1 LSEG Lipper sustainable fund flows report now published - see comments for link. Despite negative flows for equities overall (-£1.17bn), sustainable equity funds took in £6.1bn over the quarter—making it the most successful #ESG asset class. This was followed by bonds, where sustainable funds netted £1.91bn, compared to £2.64bn for conventional bond funds. There’s a definite shift taking place in sustainable fixed income fund markets. Contrast the take of sustainable flows as a percentage of the whole over FY 2023 (28.1%) with the same for Q1 2024—41.9%. Six out of the top-10 bond money takers for the quarter are index trackers, netting £1.74bn between them. In total, index-tracking sustainable bond funds took 61.36% of sustainable bond flows over the quarter. George Littlejohn, Adam Vaites, Jeremy Robinson, Mona Dohle' James Alexander 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝘃 𝗰𝗼𝗻𝘃𝗲𝗻𝘁𝗶𝗼𝗻𝗮𝗹 𝗳𝘂𝗻𝗱 𝗳𝗹𝗼𝘄𝘀 𝗯𝘆 𝗮𝘀𝘀𝗲𝘁 𝗰𝗹𝗮𝘀𝘀, 𝗤𝟭 𝟮𝟬𝟮𝟰 (£𝗯𝗻)

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5 Comments

The success of GIPS® standards at compliant firms heavily relies on a strategic approach to GIPS standards maintenance. While many individuals step away from GIPS after the implementation, establishing a dedicated GIPS committee proves vital. This committee should play a key role in overseeing maintenance and actively participating in decision-making processes. Despite challenges, this proactive strategy remains the most effective for sustaining GIPS standards. GIPS should not be the sole responsibility of a junior person in the performance area. Please add a comment to agree or disagree with me. #Compliance #Standards #Investmentperformance #performance #Solve

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Darpan Harar, CFA from our Multi-Asset Credit team explains that a preference for quality has seen many high-yield investors flock to a part of the credit market that currently offers poor value. Those with the flexibility to explore further afield can find higher quality assets at more attractive valuations elsewhere. 🔗Read the article: https://nty.one/4cFo2ZM 🔗Visit our newsroom: https://nty.one/3RMiWTx #91PictureThis #creditmarkets #investing Investment involves risk; losses may be made. For professional investors.

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Practical Applications of How Many Is Too Few? Revisiting the Number of Names in Equity Portfolios: https://lnkd.in/gE-YXauQ. By: Jennifer Bender and Xiaole Sun In How Many Is Too Few? Revisiting the Number of Names in Equity Portfolios, from the February 2024 issue of The Journal of Portfolio Management, Jennifer Bender and Xiaole Sun of State Street Global Advisors find that the primary determinant for the optimal number of names in a portfolio is tracking error. Read the full practical application report at Portfolio Managment Research. #equityportfolio #portfolios #research

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Schroders has joined the growing list of UK asset managers adopting the Financial Conduct Authority's Sustainability Disclosure Requirements (SDR) labels. While some question whether these sustainability labels are making meaningful progress, they are fundamentally designed to enhance transparency and trust in sustainable investments. Schroders’ decision to apply these labels to 10 of its funds demonstrates its confidence in supporting robust sustainable and impact investment practices. As sustainability in finance becomes increasingly important, frameworks like the UK’s SDR and the EU’s SFDR play a vital role in reducing greenwashing and empowering investors with clear, credible information. It’s encouraging to see companies stepping up and aligning their strategies with these frameworks, even as they navigate the complexities. Initiatives like these set the stage for a more transparent and accountable future in finance. #SustainableFinance #ImpactInvesting #Transparency #GreenFinance #Schroders #FinanceInnovation

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Our December Investment Outlook presents our latest asset class views and 2025 investment insights. Read it here: https://ow.ly/3Mu250UrO42 Professional investors only. Capital at risk

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10 new products launched in the UK last week from Meteor Asset Management, and Walker Crips. https://lnkd.in/emSc64Tg #StructuredProducts #Investment #Research #Analysis #StressTest #Valuations #Consultancy #B2B

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We believe cultivating #DiversityAndInclusion leads to better investment decisions for our clients. Read our 2024 Diversity and Inclusion Report to learn how we aim to deliver long term sustainable change: https://bit.ly/4cTyNHF. #ActualInvestors

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Discover how our team take an unfettered approach to fund selection, combining best of breed funds to meet a range of client needs. Capital at risk. https://ow.ly/AKAX50S8Aie

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Discover how our team take an unfettered approach to fund selection, combining best of breed funds to meet a range of client needs. Capital at risk. https://ow.ly/AKAX50S8Aie

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In our latest global credit podcast, Azhar Hussain, Head of Global Credit and Ewan McAlpine, Investment Director, talk latest developments in market indicators, as credit spreads have tightened and government bond yields risen, leading to negative returns. They also discuss some of the interesting company stories the team have uncovered across the globe, and what they tell investors about the current market. Listen now to Azhar and Ewan as they discuss the key themes and issues currently impacting global credit investors: https://ow.ly/KE7j50S3UKu #Credit #HighYield #FixedIncome #Podcast #GlobalCredit

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In our latest global credit podcast, Azhar Hussain, Head of Global Credit and Ewan McAlpine, Investment Director, talk latest developments in market indicators, as both credit spreads and government bond yields have grown tighter. They also discuss the interesting company stories the team have uncovered across different sectors and the globe, and what they tell investors about the current market. Listen now to Azhar and Ewan as they discuss the key themes and issues currently impacting global credit investors: https://ow.ly/4tl050Ro6nM #Credit #HighYield #FixedIncome #Podcast #GlobalCredit

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