Zuleika Salter

Highlights from Intermediate Capital Group (ICG) trading statement for the three months ended 30 June 2024: 📈 AUM of $101bn 🗓️ Strong quarter, with $4.7bn of new capital 🤝 Elevated transaction activity compared to Q1 FY24 🔭 Expectations remain unchanged from our FY24 results 🌿 Marking a decade of responsible investing at ICG with the publication of our latest Sustainability and People Report #PrivateMarkets #PrivateCapital #Alternatives Capital at risk. Past performance is not a reliable indicator of future results.

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A different way to play the AI & semiconductor theme.

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My thanks to Citywire and Baroness Ros Altmann for the below article, which Baroness Altmann has written in response to Henry Cobbe, CFA’s article earlier this week. See below. Two key points are as follows: 1) everyone is calling for transparency and full correct disclosure. Investment trusts (or listed closed ended investment companies - LCICs) disclose all expenses via their reports & accounts, as they always have done. 2) LCICs share characteristics with OEICs but they do not have “ongoing charges”. Ongoing charges are deductions from investor capital that occur annually. For LCICs, there are recurring operating expenses (part of which is analagous to ongoing charges of OEICs), but these are known in advance and impact the NAV not the share price. The share price discounts (encapsulates) theses expenses. The value of the investment with a LCIC is the share price not the NAV. In a lively and good-natured comments section to my LinkedIn post earlier this week, Mr Cobbe called for a consultation. But first we need to wait for the results of the extensive consultation on HMT’s Statutory Instrument taking the UK out of the PRIIPs regime and into the new UK-only Consumer Composite Investment (CCI) regime. 329 signatories (the most significant response to a HMT consultation ever apparently) signed the LSEG (London Stock Exchange Group) response calling for LCICs to be excluded. LCICs are not “CCIs” (or even PRIIPs). Investors have no contractual right to receive a share of NAV at a time of their choosing (as they have with OEICs). Prospectuses are usually clear on this point. The value of the investment in a LCIC is the share price. If HMT decide to keep LCICs in scope of CCI, the FCA will surely consult on the disclosure regime. Incidentally, our arguments apply to ALL LCICs, even those investing in vanilla equities. I have long characterised LCICs has inhabiting a spectrum from ordinary listed operating companies to OEICs. Some are closer to either end, but none are at either end. We need a disclosure regime that is bespoke for LCICs and we mustn’t crowbar them into either category. Our campaign group has come up with a “Statement of Operating Expenses” that we suggest all LCICs could disclose. This surfaces expenses correctly and in a way that will aid comparison between LCICs & OEICs. Finally, our campaign group share some of the aims of the The Association of Investment Companies (AIC) but we do not agree with their back up proposals. We believe ongoing charges of OEICs, ETFs should be aggregated in the OCFs of fund of funds. These are deductions from capital. LCIC expenses should not be aggregated for the reasons outlined above: they simply do not have ongoing charges. Thanks again to Baroness Ros Altmann and Henry Cobbe, CFA for shining a light on this wonderful sector. https://lnkd.in/eB96qPrG

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In this weeks edition of 'The Source' the Nasdaq team highlighted those 66 firms managing 77 strategies that passed the $100m AuM threshold on the Nasdaq eVestment platfom as of Q2 2024. Passing such milestones are key for managers as consultants and investors often sceen for strategies with a minimum AuM threshold when narrowing down the number of strategies for further consideration. As such this is a great opportunity to enhance visibility with gatekeepers. Congratulations to my former colleague and mentor, Lisa W., and the VELA Investment Management, LLC team with the VELA Small Cap strategy achieving this milestone! Please follow the link below for more details. If you are not receiving The Source please get in touch with the Nasdaq team and we can add you to the distribution! #equities #fixedincome #milestones #hedgefunds #balancedstrategies #insitutionalinvestors Rachel Johnston Andres Ramos

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There are over 100 MPS solutions now in the market - how can advisers possibly differentiate? Cost and performance are clearly important, but as an industry (on the investment side) we can do much more for clients. It's time to start moving MPS/multi-asset investing forward - bringing real value to advisers and the end client - by delivering solutions relevant to varying needs, in a simple and coherent manner. Alongside our Core portfolios, we launched our Satellite portfolios over two years ago. We are able to cater for clients that have varying time horizons and goals - from wealth accumulators to those in retirement - using model portfolio building blocks. Using our tech, an adviser recently built a custom portfolio for their client in retirement: £500k pension pot, needing £25k a year; + £100k in an ISA, for income. Desire to leave some legacy. The solution: - £400k in Growth Core portfolio (working away growing capital) - £100k in Cash Plus Satellite portfolio (4 years worth of cash, still earning 5%) - £100k in ISA in High Income Satellite portfolio (generating tax free 5-6%) = sequencing risk reduced; client feels personal circumstances met and has less market anxiety; easily understood and implemented in 20 mins. ...this is Consumer Duty.

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#Hargreaves_Lansdown Hargreaves Lansdown backed the £5.4 billion bid for the FTSE 100 fund manager today from a private equity consortium, a deal that will end its time as a listed company. The Bristol-based finance firm has been listed in London since 2007. It said today that the final offer valued its shares at 1140p in cash and would include a 30p per share dividend for the financial year which ended on 30 June. Compared to the Hargreaves Lansdown share price before the approach was first made in April, the price is at a premium of over 54%. The consortium is made up of CVC, Nordic Capital and ADIA. Hargreaves Lansdown is named after its founders – Peter Hargreaves and Stephen Lansdown – who set it up as an investment tip sheet. It now runs a state-of-the-art trading platform from which clients can run their own portfolios and pensions. https://lnkd.in/dKpizupy

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The strength and resilience of our core infrastructure portfolio have been successfully demonstrated once again in BBGI’s half year results 2024. The predictable cash flows from our existing portfolio provide the necessary headroom for BBGI to sustain progressive annual dividends for the next 15 years, even without additional investments. Stabilising, and potentially reducing interest rates, combined with an ever-increasing demand for infrastructure investments, presents a long-term growth opportunity for BBGI. We will continue to maintain a disciplined and prudent approach to capital allocation and prioritise the most optimal use of cash based on maximum value accretion for all our stakeholders. Please watch the recorded presentation of BBGI’s results for the half year 2024 by @DuncanBall, CEO, and @MichaelDenny, CFOO: https://lnkd.in/eQKHFiDi #BBGI #BBGIGlobaInfrastructure #Infrastructure #InterimResults #InvestmentTrust #InvestmentCompany #InfrastructureInvestor #FTSE250 #Inflationlinkedincome #Growth #Inflationprotection  

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The macro economic landscape is constantly evolving and changing the outlook for risk and reward. Here’s our take on it right now.

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Pleased to see that hashtag #BBGIGlobalInfrastructure is included in the hashtag #InvestmentWeek article “Infrastructure investors weather persistent volatility as big discounts continue”. “…social infrastructure funds, such as...£1bn BBGI trust, focus on essential assets like schools, hospitals, and public transportation systems…these assets are vital to the functioning of society, making them relatively low-risk investments with the potential for steady, inflation-linked cash flows." Please read the article here: https://lnkd.in/ecDzhfVZ hashtag #BBGI hashtag #inflation hashtag #securereturns hashtag #income hashtag #infrastructure # hashtag #infrastructureinvestor hashtag #ftse250 hashtag #inflationlinkedincome hashtag #coreinfrastructure hashtag #inflationprotection Deep Dive: Infrastructure investors weather persistent volatility as big discounts https://lnkd.in/giiaM3hX

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Morning. Our latest podcast covering possibility of disinflation, slowdown in software earnings and Idexx Labs, the Astra for pet.

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Last month (Sep 2024), the Hollard BCI Conservative Growth fund reached R 1 billion in assets size, thanks to our clients and investors for their consistent support and alignment of expectations! Over the past decade, the fund has consistently delivered on it's multiple objectives, helping clients, retirement members, and financial advisers move closer to their goals. For key insights on how we manage this fund, please read our latest #CitywireSA article below 👇. #HollardInvestments #Hollard #IFAs #Investingstories #HollardUnitTrusts #Retirementsolutions

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In the Strategy Snapshot this week, Daniel Cassidy and I break down the drivers behind the market volatility, explain our current investment outlook, and share guidance for positioning during these volatile conditions. Listen to the podcast for all the details. #shareubs https://lnkd.in/e6tdDHdA

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Note: The following is my personal musing and not necessarily the view of GHC Capital Markets Limited It is with admiration that I post Ros Altmann’s latest column. No one has offered more support to UK 🇬🇧 #financialservices than the former Minister for Pensions, heading the campaign from within the UK House of Lords alongside her “partner in crime” Sharon Bowles, reflecting the anomalous cost disclosures regime for Members of The Association of Investment Companies (AIC)…. https://lnkd.in/e_GHBw8E are many in the industry who have assisted but the fact is, it requires political intervention to change the law). It puts to shame the House of Commons. She’s at it again, this time urging the UK government 🇬🇧 to support domestic #markets. There are many who ask why should UK 🇬🇧 #pensionfunds #institutionalinvestors and #retailinvestors allocate more of their savings at home? The lessons are there for us all IMO, if we don’t encourage! Ros is quite right to point to the effect that perceived de-risking of Pension Funds in particular has had. There was mass reduction of #equity exposure, it was going to have an effect…simple #supply and #demand tells us that. #Regulation encouraged pension funds toward greater matching of #assets to #liabilities and the shift to bonds, reflecting the locking in of returns in a lower for longer #interestrate and #inflation environment. Many people blame the speed at which UK 🇬🇧 interest rates rose on Liz Truss and Kwasi Kwarteng’s failed attempt to stimulate growth and reduce the #tax burden. However, that ignores what has similarly happened around the world! I’m not a #maths or #economics genius! However, even I could work out that the 2022 reversing of QE was always going to have an impact. We of course couldn’t have predicted war in Ukraine. But we could have been more ready to react better to rising rates of interest and inflation. I just hope we manage to learn the lessons quicker than in the one country, who in the late 1980’s early 1990’s, lost its way in terms of the value of its domestic market and is only now back to its peak of that time. I refer of course to Japan 🇯🇵. So-called “Abenomics” and in particular the implementation of painful structural reforms to return the economy to a growth path is, I would suggest, finally paying off. It was effective in supporting large firms by boosting #equity markets and nurturing a sense of #stability. Japan (and German) recovery after the Second World War (for the 50 years or more that followed) was stopped by corruption, together with the collapse of Communism across the Eastern Bloc. It coincided with the rise of the European Union 🇪🇺 only now being challenged again by events in Ukraine, and before that Brexit. To kick-on, the UK 🇬🇧 and it’s markets need the support of dometic #investors. Our economy is dominated by the service sector, it’s an industry too vital not to be supported. Now is the time to act! #socialmedia

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This FT Alphaville article by Robin Wigglesworth is certainly worth a read (and not just for the excellent Simpsons reference). He explores a recent note from Goldman Sachs in which they dispel some of the myths around index or passive investing having a detrimental impact on markets. The section on “Is passive investing entirely passive?” particularly resonated. As Robin and Goldman point out, indices are built differently and used by investors differently. Indeed, “passive” investors use index instruments to implement their strategic and tactical decisions. For instance, they may use regional, sector, factor, thematic, sustainable (etc). indices in allocating their capital. Additionally, as Robin notes, similar looking indices will vary from one provider to another - again, investors are making an active decision on which best meets their requirements.  As the adage goes, there is nothing passive about index investing. https://lnkd.in/eDVZgJKs

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Over 240 firms added 450+ strategies to the Nasdaq eVestment platform in 1Q24 for visibility with consultants, intermediaries, and investors. The newly marketed strategies were added by firms domiciled across 30 unique countries spanning from Australia to Singapore to Switzerland, and 28% indicated integration of ESG considerations into their respective investment processes. From a geographic standpoint almost 200 were broadly diversified (i.e. had a global investment focus) in nature, however, in total the newly promoted strategies spanned over 30 different regions across #balanced, #equities, #fixedincome, #hedgefund and #realestate capabilities. Please see the link below for further details… (managers please do contact the Nasdaq eVestment team should you have questions regarding optimizing presence/visibility, opportunities, and relevant trends/insights of those areas where your firm has expertise!).

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Bannerman Energy Ltd / Shaw and Partners Nuclear Energy, Uranium, Bannerman discussion Bannerman Energy Executive Chairman and Shaw and Partners Head of Research Andrew Hines discuss all things nuclear energy, uranium supply, Bannerman Energy and the Etango Uranium Project. https://lnkd.in/gaDJh9Wa We discuss recent developments in the global nuclear industry and why demand for nuclear power is growing again. We discuss the deficit in uranium supply to meet current demand, let alone the expected growth from the technology industry and small modular reactors. We talk about the lack of new uranium projects ready to be developed post the industry’s decade long hibernation after Fukushima and how Bannerman has positioned itself to be ready to develop the Etango Uranium Project at the perfect time. 0:00      Introduction 0:30      World Nuclear Symposium feedback 2:30      Demand for Nuclear Energy is growing again – technology companies, data centres, Chinese growth, US power demands 10:20    Uranium Supply – Existing supply is insufficient to meet demand 14:29    Uranium Supply – Utilities have not yet returned to replacement level contracting so we have not yet discovered the true incentive price for uranium. Shaw and Partners forecasts that uranium will reach US$150/lb in 2025 18:36    Uranium Supply – there are risks to existing supply which is highly concentrated 21:32   Bannerman Energy – How Bannerman managed the industry downturn 25:00   Namibia – An excellent jurisdiction to build a uranium mine 28:32   Bannerman Energy – building a world class management team 31:35   Etango Uranium Project – Construction has commenced, maintaining optionality and flexibility 33:20   Etango Uranium Project – The contracting approach for a 40 year asset 36:40   Wrap-up and conclusion Brandon Munro Emma Culver Gavin Chamberlain Steve Herlihy Twapewa Kadhikwa Alison Terry Clive Jones Mike Leech Ian Burvill Werner Ewald Ronnie Beevor Andrew Hines Anthony Wilson Chris Dorney Russell Karlson Sam Christie Christopher Ziomek Mike Stanford Peter Kormendy Dorab Postmaster Earl Evans Gauthier Merlin Jake Burgess Thomas Tsiakis Elton Wang Lindsay Archibald Edward Walker Paul Johnston Mark Hardman Chloe Hayes Sinclair Clinton Philip Pepe Abraham Akra, PhD Please be advised that the advice we have prepared for you has been prepared without taking account of your objectives, financial situation or needs. Accordingly, before acting on any advice, you must consider the appropriateness of the advice having regard to your personal circumstances. If the advice we have provided relates to the purchase or possible purchase of a particular financial product, you should obtain a Product Disclosure Statement relating to the product and consider it carefully.

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In the Strategy Snapshot this week, Daniel Cassidy and I discuss the factors that have been behind the notable market rotations over the past month, and for how much longer these moves may continue. We also preview a busy week ahead of Q2 earnings reports and macro data, including the July Jobs Report. Listen to the podcast for all the details. #shareubs https://lnkd.in/e-eVjFvS

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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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Green shoots emerge in the #convertiblebonds world, as corporates, looking to plug gaps in their business, exhibit a heightened appetite for #acquisitions. This trend is especially noticeable among companies who aren’t reliant on third-party financing. #convertibles

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