Tina Rydberg

Join our webcast with chief strategist Luca Paolini on Tuesday 3rd December for our return forecasts for the next 12 months across asset classes as well as the implications of Trumponomics for markets. We'll also cover: -Why the UK could be the growth wildcard and outperform its European counterparts -Why we expect a modest recovery in the Euro-area economy next year -How conditions are becoming supportive for risk assets globally Register here: https://lnkd.in/dujXsWY9

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https://lnkd.in/eYiwP36P UK equites trade at close to 40 year relative lows versus global equities AIM stocks have underperformed UK equities by 55% since mid 2021. and now some catalysts. " a stable government, interest rates falling, inflation stabilising and growth returning" Could we be about to get Value AND Momentum in the UK ? Small companies outperform through the cycle and have historically done particularly well when interest rates fall. If not now then when?

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Closet Benchmarking Among UK Equity Funds? In the ever-evolving landscape of UK equity funds, it’s important to identify which funds are truly active versus those more aligned with the benchmark. Our latest research, visualized in the scatter chart below, sheds light on where funds fall on this spectrum, with the X-axis showing stock active share and the Y-axis displaying a blend of country and industry-level active share, compared to the FTSE All Share index. We observe a wide spread of results, showing the diversity in fund strategies, from highly independent stock-pickers to those with a more benchmark-aligned approach. We highlight 4 funds with the greatest independence from the benchmark: • Lindsell Train UK Equity • Finsbury Growth & Income Trust • Aviva UK Listed Equity • Castlebay UK Equity What do they have in common? Low to zero allocations to sectors like Energy, Health Care, and Materials - proving their differentiated approach from the FTSE All Share index. However, it's crucial to note that while 'closet benchmarking' can suggest a lack of transparency, that might not be the case here. Many of the funds with lower active shares fall into specific categories, such as ‘tilt,’ ‘enhanced index,’ or ‘beta plus’. These approaches are deliberate and part of a well-defined fund strategy to remain aligned to benchmark indices. In terms of performance, the inset chart shows that high active share funds have outperformed their lower active share peers over time. Since April 2012, high active share funds have returned 164% on average, compared to 131.6% for low active share, 126.2% for medium active share, and 134.5% for the benchmark FTSE All Share ETF. What do you think about active investing with benchmark constraints? Is true independence from the benchmark the key to success, or do defined strategies with low active share still have a place in the market? #UKEquity #ActiveManagement #FundResearch #Investing #PortfolioManagement #assetmanagement #stocks

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The introduction of the European Consolidated Tape has the potential to alter the landscape in the European equity market. It's interesting that two of the largest pan-european players have stated an intention to bid for the right to operate. https://lnkd.in/ebV-PViQ #ctp #equity #tape #marketdata #trading #stockexchange #mtf

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Good product variety this week by both payoff and underlying. Product types include worst-ofs for higher yield, daily opportunity Autocalls, defensive last call levels. Underlyings feature the Nikkei 225, Eurostoxx-50 and SPX-500 plus a decrement version of the FTSE-100 in addition to the ever present FTSE-100

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Despite challenging headwinds, investors remain committed to thematic investing with the percentage of those currently investing or planning to invest increasing since 2020, according to the third Thematics Barometer published by BNP Paribas Asset Management and BNP Paribas CIB, in partnership with Coalition Greenwich (a division of CRISIL). The survey aims to provide the global investment community with robust, credible and regular information about the key trends evolving within thematic investment. Discover here some of the key findings which have just been released: https://lnkd.in/ekefdiGV -Renewable energies and mobility driving sustainability themes -AI and healthcare lead the Innovation & Disruption themes -Asset allocation to thematic investing: the rise of private markets

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Jacobi recently hosted a breakfast event in London on the rapid growth of model portfolios with a good mix of DFMs and institutional asset managers represented. We summarise the themes discussed in this paper - ongoing implementation pains, continued fee compression and finding new ways to differentiate in a hotly contested space were key talking points. Shout out to our panel participants including Francis Chua (Legal & General Investment Management (LGIM), George Jecks (WTW) and Catherine Makin (FE fundinfo / Investments)... plus Chris Barnett for the feisty moderation. #modelportfolios #assetmanagement #investmentmanagement https://lnkd.in/e34rjsc9

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Fixed Income Forward: June 2024: New hierarchy emerges in bond risk premiums Much has happened in fixed income since the start of the year. But greater differentiation in bond markets has been slow in coming. Only now do we begin to see serious signs of a new hierarchy in risk premiums emerging. By Franck Dixmier, Global CIO Fixed Income and Georgios Georgiou, Global Head Product Specialists Fixed Income at Allianz Global Investors. #FixedIncomeForward #FixedIncome #Bonds #NavigatingRates

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For the first time in years, rising yields have made bonds a much more powerful part of the asset allocator’s toolkit. How should asset allocators be thinking about the role of fixed income in portfolios? Download the report → https://bit.ly/3yddQc3

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We've written a case study on how the addition of equities combined with cost-efficient option-based downside protection ('Protected Equities') can add particularly large value to pension portfolios, especially in the pre-retirement and decumulation phases. This case study is applied to the U.K. DC market. Enjoy reading!

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For the first time in years, rising yields have made bonds a much more powerful part of the asset allocator’s toolkit. How should asset allocators be thinking about the role of fixed income in portfolios? Download the report → https://bit.ly/3yddQc3

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A topic that continues to gain traction in policymakers minds. How do they attract the best talent and the most affluent? Particularly in the context of an aging population and large deficits? Competitive forces will be in play! Learn more below, or on the podcast “Beyond the benchmark” by EFG.

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With the help of Nicola Zanetti in our quantitative advisory team, we try to estimate how holding a quota of MA funds can enhance risk-return metrics for asset allocators. We analyze how for a portfolio investing passively 75% in ETF Euro Aggregate and 25% ETF MSCI ACWI reacts while adding incremental quotas of a basket of large EUR MA Global conservative **** funds, without changing the overall allocation. The evidence we get over last 4 years shows a reduction of volatility and drawdowns while enhancing alpha. The reasons are mainly two: 1) adding an extra level of diversification ( skills) given macro and geopolitical scenarios often unpredictable 2) allowing also for a second layer of diversification (duration management, steepeners, inflation linkers, sector rotation, fx relative value, commodities, stock selection etc) not obvious for asset allocators. So we think MA funds can cover an important role as diversification boosters also for investors who love implementing directly asset allocation decisions with flexible and efficient tools as ETF.

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What drives the recent surge in AT1 issuance among European banks? In 2024, €11.6bn gross issuance hints at underlying trends. While recent calls reflect strategic shifts, the muted net supply echoes broader regulatory capital optimization. This nuanced landscape suggests a supportive environment for AT1 valuations, potentially leading to a scarcity premium. My colleauges from TwentyFour Asset Management LLP delve deeper into the implications for professional investors navigating these dynamic markets⬇️ #AT1Issuance #EuropeanBanks #Investing #MarketTrends https://bit.ly/3ymSt8p

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Vasileios (Vas) Gkionakis Senior Economist and Strategist at Aviva Investors, recently spoke to FT Adviser's Investment Editor David Thorpe to discuss the outlook for the US economy and the likely trajectory of the Federal Reserve over the rest of 2024: "The US economy has so far been able to weather the impact of higher rates. While growth continues to be strong, policymakers need to think about the balance of probabilities, the longer monetary policy is tight, the greater the chance that something breaks in the economy. The imbalance between services and goods inflation is something that is happening in most developed economies, and he feels it likely to mean the Fed will want to see several quarters of positive inflation data before making a decision to cut rates." Read more here: https://bit.ly/3SiMd8S #Outlook #Economy #Rates

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Why short duration high yield? In recent years, record-high new issuance and refinancing activity pushed down coupons and interest expense – and pushed out maturities. Today, this adds up to an even more compelling yield-to-duration trade-off. https://lnkd.in/eDQWsiBJ The linked content is intended for qualified institutional investors and/or financial professionals only.

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LGIM co-leads the Glasgow Financial Alliance for Net Zero (GFANZ) Index Investing workstream (with SGX Group and PKA); in this LGIM Blog post we summarise key points. The workstream is looking at producing voluntary guidance on how index investing can support real-economy decarbonisation. One important aspect is how investors can incorporate "transition-potential" companies/issuers in such indices, at least initially. The role of engagement, and the need for accessible, standardised, quality data, are important areas for discussion. The GFANZ paper and link to the consultation can be found here: https://lnkd.in/eZZ8T56m #climatechange #climatecrisis #netzero #responsibleinvesting #decarbonization #energytransition #sustainability

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Great to see Berenice joining this esteemed panel to talk about the continued resilience of infrastructure debt asset class . At LBPAM , we have a 12 year track record in investing in European infrastructure debt. We look to offer full capital structure solutions for our Borrowers in the European mid market infrastructure space , one of the deepest markets globally . We offer strategies in Energy transition , Climate impact as well looking at how to invest in this expanding asset class to improve European competitiveness in this space . #LBPAM # infrastructure debt

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