Tom Hibbard

Hi The attached note takes another look at the increased worry list and noise around investing and how to stay focussed. The key points are as follows: * A surge in financial information and opinion along with our natural inclination to focus on bad news is arguably making us worse investors: more fearful and short-term focussed. * Five ways to help manage the noise and stay focussed are: put worries in context; recognise that shares return more than cash in the long-term because they can lose money short-term; find a process to help filter noise; make a conscious effort not to check your investments so much; and look for opportunities that investor worries throw up. All the best Shane

18

For UK Professional Investors only. Capital at risk. Our Private Markets team does an outstanding job helping clients explore opportunities for DC pension schemes. As the UK regulatory landscape evolves, opportunities are expanding, offering scope to enhance returns and drive broader economic growth. In this latest piece, our Head of Private Markets Investment Specialists, mark meiklejon, helps our clients understand the complexities by setting out five things DC schemes need to know about Long-Term Asset Funds (LTAFs): 👉 How LTAFs can provide access to long-term, less liquid assets for patient capital. 👉 The diversification benefits and potential for enhanced returns from private markets assets. 👉 How operational challenges are being addressed. For an update on recent developments, I recommend our latest insight, available here: https://bit.ly/3YhKgwT #PrivateMarkets #LTAF #ItTakesAvivaInvestors #RealAssets

47

This chart is important. Capital at risk. It shows the average rolling five-year performance relative to the index for all of Baillie Gifford’s UK-domiciled equity fund range. It illustrates that our funds have collectively outperformed over five-year periods for the vast majority of the time. For the 30-year available history, outperformance over five years has averaged +1.9% per annum (pa). The current situation is that having peaked at +9.8% pa in January 2021, the very sharp sell-off in growth equities has resulted in an underperformance of -1.9% pa for our equity fund range as a whole in the five years to the end of March 2024. We have seen such periods from January 1995 to June 1997 and September 2008 to November 2009. In both cases, strong performance recoveries followed over the next five years. There can be no guarantee that this will happen again, but we hope it will be informative for investors to see the long-term pattern of relative fund performance resulting from our investment style. It comes from this article by James Budden: https://lnkd.in/eXkRwCWw #LongTermInvesting #Cyclicality #Patience #TheLongView #ActualInvestors

68

3 Comments

A great flow chart from the UK Investment Association for those who want to understand which fund share class to select as 'primary'. In contrast to how some data providers default to the oldest, legacy share class, it seems very clear that one should perhaps choose a share class that is 'unbundled', and 'freely available to all investors... '. For the Marlborough Multi Cap Income Fund, this is the 'P' share class! This also covers c.99% of all fund units in issue so most representative of the returns delivered to the wider investor base.

40

As pension funds seek stable, long-term returns, healthcare royalties are emerging as an attractive asset class for UK investors. With their predictable income streams and low correlation to market volatility, could royalties offer a reliable alternative to traditional investments? Aysha Gilmore reports. Sagard, Railpen, Craig Heron, David MacNaughtan #royalties #alternatives #investors #volatility #incomegeneration #income #lgps #pensions https://lnkd.in/eZc-zaCc

7

*Marketing material for professional clients only* 🌟 New insight for pension schemes on endgame portfolio strategies!🌟 We are excited to share the latest #Schroders article: "Crafting investment portfolios for low dependency and run-on strategies." This in-depth guide explores the potential investment portfolios for schemes targeting 'low dependency' or 'run-on' strategies. Discover how to optimise your portfolio approach, and manage investment risks. 📈 Read Full Article: https://okt.to/9RoyQl 🔗 Subscribe to our Insights: Stay updated with the latest insights relevant to your interests https://okt.to/gDoRAY For more information or to start a conversation about these strategies, contact us at Schroders. #Investment #PensionSchemes #SchrodersEndgameSolutions #LowDependency #RunOnStrategy

3

1 Comment

Culture: The X-Factor in Long-Term Stock Performance? Capital at risk. What if the most crucial factor driving long-term stock performance isn't on any financial statement? At Baillie Gifford, and especially in the US Growth team, we believe it's company culture. It doesn't fit into a DCF model, but that's exactly why it matters. Case in point: Max Levchin, CEO of Affirm (one of our holdings), recently shared insights on their culture: • "Morality is key in everything we do" • "Integrity got us here, never compromise it" • "Constant heroics = poor planning" • "Lead by example" and so on. Why does this matter? Culture shapes innovation, employee retention, and customer satisfaction. It's the DNA of sustainable growth. At Affirm, these principles could translate to clearer customer communication and better business practices. That's the kind of long-term thinking that builds lasting value. Words are easy, however. Actions matter more, so we watch to see the principles Levchin outlines in his post reflected in the actions of his business and employees 'on the ground.' Interested in others' thoughts on this https://lnkd.in/exMHRkA8 #LongTermInvesting #Culture #InvestmentResearch

6

💡Wondering how investment trusts can suit your portfolio? Our new #FundInsight series breaks down the strategies and performance of listed funds📊 Our latest report covers CVC Income & Growth #CVCG #CVCE. Free to read here: https://lnkd.in/eSUjCd2K 🧠 #InvestmentTrusts offer access to experienced portfolio managers, and these reports are designed to help you navigate the market🔍 Capital at Risk. Winterflood Securities is regulated by the Financial Conduct Authority. #RetailInclusion #InvestorInclusion #FinancialServices

23

Barclay's Private Markets Annual Report for 2024 is here! The report is a collaboration with PitchBook and looks at how private investors are shaping the industry. The highlights include: - Why private markets are attracting a growing number of private clients. - Key strategies for manoeuvring the space. - Insights from experts at BlackRocks - The role private markets can play in an investment portfolio. Get the full details here: https://heyor.ca/pWDFjL #Investment #SilverlightExpertNetwork #PrivateMarket #PrivateEquity

10

Read the latest #fixedonbonds blog where Lloyd Harris, Head of Fixed Income, examines the potential outcomes of the US election, what these mean for the US budget deficit and in turn fixed income markets. For investment professionals only. Capital at risk. #fixedincome #bondblog #bondinvestors #uselection

🎯 Long term strategy and end game planning has been high on the agenda at this quarters' meetings with clients. Improved funding level positions alongside improvements in insurer pricing means several of my clients, like many, find themselves closer to buy-out or within 'cheque writing' distance earlier than expected. However, the end game landscape has changed significantly over recent years, with new options like Clara coming to the market, whilst the Mansion House Speech has really opened up the idea of running on for a period rather than insuring benefits at the earliest opportunity. 📊 Whilst buy-out is unsurprisingly still the target for 62% of DB schemes surveyed in our DB Endgame Survey, nearly 30% are planning to run on beyond buy-out funding. ➡ So even if you had your end game agreed well in advance, it really is worth revisiting, like my schemes have been doing, given the evolving landscape and greater flexibility. ✨ And for those targeting buy-out, our Risk Settlement Conferences, taking place in Birmingham and London during July is not to be missed! Alongside leading insurers we will be discussing in detail all the things you should be considering when preparing to transact along with some top tips and lessons learned. You can register to attend here ⬇ Aon's Wealth Solutions https://lnkd.in/eNMjM9Sz

14

The good news train keeps motoring on. Ten-year yield a truly lovely and low 3.82%. Vix mid teens. That print in the 60s a week ago was just that - a print. Thing are back to normal. Markets are powerful. Look at Japan. They wanted to raise rates to defend their currency. Global investors handed their government and its assets and politicians a swift, decisive vote of no confdence. Game over. Their PM Kishida announced yesterday he wouldn't seek a second term. This recalls James Carville's line about wanting to be reincarnated as a "pope, president or .400 hitter in baseball". Because everyone fears the worldwide bond market. They do now in Japan, I will tell you. Ichiro; take a bow. Crypto is at the bottom of a medium-term bear run at the latter stages of a bull run in the early innings of a skyrocket higher all before crashing down to a penny (where I'm buying all of it). Who knows. Sometimes the cliches take on a life of their own and then the people writing stuff start believing what they say or think has any impact. To borrow a line from the former Treasury Secretary Robert Rubin on the whims and idiosyncracies of the dollar: "Bitcoin goes up; bitcoin goes down..." The main thing we learned today in financial markets is inflation is cooler in the U.S. - the softest it's been since 2021 although it ain't dead yet. Lower CPI and PPI means cheaper money is coming and that's good for housing, gas prices, credit, hedge fund managers and students, among tens of millions of others. Take a big breath in. And relax.

19

10 Comments

Wealth Management: Automated Rebalancing for Model Portfolios Toca's Wealth Management Sector Director Tom Whittle explains why automating Model Rebalancing is a valuable step in mitigating Consumer Duty Fair Value risk and will not only drive efficiency and scalability into your business but create a path to Digital Services. Start building the foundations for needs of the digital native Investor. https://lnkd.in/e_DP97xR #WealthManagement #DFM #DiscretionaryFundManagement #ModelPortfolioServices #MPS #Wealthtech #Regtech #LowCode #Automation

21

In this article for ETF Stream, Hoshang Daroga explores his favourite factor - Momentum, which is also a current factor overweight for UK advisers/DFMs using a factor overlay. 1. Read the article https://lnkd.in/ehESRfuu 2. Read our factor investing research and CPD https://lnkd.in/e87Uv_XE 3. For UK advisers seeking support for their investment proposition, please contact us: https://ow.ly/V83e50QyetY #elston #multiasset #investmentsolutions

5