Name: Global equity update
Uploaded: 2021-07-08T10:54:30.000Z
Duration: 4 min 30 s
Description: Will Kenney, Senior Fund Manager, highlights the inflationary pressures created by an earnings recovery across a number of sectors. He examines the reasons behind this and reviews whether the rise in inflation is likely to be transitory or more permanent. Will also reviews the Global Equity team’s Corporate Life Cycle investment process focusing on the ‘accelerator’ and ‘mature’ stages.

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What has the effect of the global pandemic been on cash solutions and what does this mean for UK interest rates? Craig Inches, Head of Rates and Cash will examine how a co-ordinated monetary and fiscal response from global central banks led to a growth and inflation boom.  

Craig will review the types of instruments used to counter rising interest rates within cash solutions and how they may offer yield in an inflationary environment. 

Finally, as Environmental, Social and Governance issues continue to be at forefront of investors’ minds, Craig will assess what this means for investment managers and issuers.

Cash solutions update

Insurers are under increasing pressure to enhance their climate risk management practices and provide appropriate public disclosures. However, for many insurers this is still work in progress, and they are having to rapidly evolve their processes to meet these requirements and with no one size fits all approach applying. 

To provide input into how the insurance market has been approaching this to date, RLAM together with Solvency II Wire have undertaken a benchmarking exercise of the practices of some of the largest and most sophisticated insurers. This potentially provides valuable insights into emerging best practices in climate risk management and disclosures, as well as valuable peer context for the wider insurance market. Against the backdrop of COP26, there has never been a more pertinent time for such analysis and discussion.

Join Andrew Epsom, Insurance Client Solutions Director at RLAM, and Solvency II Wire’s Editor & Founder, Gideon Benari, as they share their views on the findings of the analysis and what this may mean for the wider insurance market. They will be joined by Robert Chaplin, Partner at Slaughter and May, who will also be sharing his views on insurers’ emerging responsibilities in this critical area.

Climate risk management for insurers

Have recent market volatility and inflationary pressures dampened growth opportunities? Yields are rising but remain low and credit spreads are tight. Paul Rayner, Head of Alpha Strategies will highlight the potential benefits of diversification within government bond allocations, should inflation and yields rise. 

Paul will review current value opportunities by region and duration. He will also demonstrate how an absolute return government bond strategy might perform through market volatility and across all market conditions, which may offer investors some form of protection as well as growth potential.

Absolute Return Government Bonds update

What is the outlook for growth in 2022? 

The recent slowdown in growth has followed the very strong recovery witnessed during the initial stages of the reopening of the global economy. 

This slowdown is the result of an unusual business cycle and to be expected, according to RLAM’s Head of Multi Asset, Trevor Greetham, and it’s a time to ’wait and see’ what happens to inflation and growth next.

Multi asset monthly update

Have current inflationary pressures and revised forecasts of higher inflation over the next few years been priced into the valuations of government and index linked bonds accurately? Jonathan Platt, Head of Fixed Income and Ewan McAlpine, Senior Client Portfolio Manager share their views.

Jonathan and Ewan will also review value opportunities and liquidity in global and sterling credit markets, as well as providing their outlook for the final quarter of the year.

Fixed income quarterly update

The re-opening stage of the global economy is coming to an end, and with a move to the ‘new normal’ has led to a slowdown in growth.

RLAM’s Head of Multi Asset, Trevor Greetham, will examine how this slowdown in growth has moved the Investment Clock to a stagflation position and why, despite this, there are still growth opportunities available for investors for the rest of the year and into 2022.

Multi asset quarterly update

Head of Sustainable Investments, Mike Fox and Senior Fund Manager, Shalin Shah will provide a review of sustainable investing in the third quarter. 

Mike and Shalin will share how they’ve been responding to changes in the market and provide an assessment of current sustainable investing themes and performance drivers. Finally, they will deliver an outlook on both equity and fixed income markets.

Sustainable investing quarterly update

What were the main drivers behind the strong equity market performance over Q3 and the reasons for the sell-off in the final weeks of the quarter?

There are important tailwinds for many quality growth companies that feature in the sustainable funds, according to George Crowdy, Fund Manager. 

George explains how these factors, such as digitalisation within the technology sector, create a favourable environment for sustainable investing and helped drive performance over the period.

Sustainable quarterly update

What are the expectations for growth over the remainder of 2021 and into 2022? Will central banks taper stimulus measures, and interest rates rise? 

Despite the recent slowdown in growth and rising inflation that has led the Investment Clock into a stagflation position, there are still reasons for optimism, according to RLAM’s Head of Multi Asset, Trevor Greetham.

Trevor highlights why the world economy may be stronger in 2022 and explains the reasons behind the asset allocation across the multi asset portfolios.

What are the different types of inflationary pressures currently affecting global equity markets?

Will Kenney, Senior Fund Manager, highlights the bottlenecks in supply and a surge in demand within areas such as oil and gas. He also provides stock specific examples of companies with the pricing power to pass on increases in their costs of production to customers.

Finally, Will profiles the diversification across the different stages of the Global Equity team’s Corporate Life Cycle investment process, used to limit risk exposure within this environment.

Global equity quarterly update

Having launched in February this year, Senior Fund Manager Rachid Semaoune will provide an overview of the fund in its first six months.

Rachid will review the compelling proposition of sustainable investing in global credit markets. He will explain how the team’s well-defined investment process is utilised and how it has identified opportunities since the fund launched.

Global sustainable credit update

Senior Fund Manager Richard Marwood will review the key themes within the current market environment, such as inflationary pressures and M&A activity. Richard will also provide an outlook for the remainder of the year. 

Additionally he will review the fund, highlighting changes he has made within the portfolio, and how it has delivered since he became lead manager earlier this year.

UK equity income update

The fund has a well-established approach to responsible investing. Eric Holt, Senior Fund Manager, will provide an overview of the screening process used to identify and exclude certain securities from the portfolio.

Eric will also present on how the fund has delivered over the medium and long term and review yield opportunities within the current environment. He will conclude with an assessment of market trends relevant to seeking out possible future holdings.

Ethical bond update

The race to zero emissions is gaining momentum and decarbonisation commitments from corporates and governments are increasing ahead of the next UNFCCC COP26*.  The apparent gap between the science-based emissions’ reductions required to halt climate change and the trajectory of the economy seems to be closing, as shown in the recently published International Energy Agency (IEA) Net Zero 2050 scenario modelling. But what is the size of the gap? How trustworthy are these Net Zero commitments?  And, what is RLAM’s role in achieving Net Zero and helping our clients to fulfil their own climate commitments? Following the recent publication of our Stewardship & responsible investment 2021 and 2020 TCFD reports, Carlota Garcia-Manas, Head of Engagement and Simonetta Spavieri, Responsible Investment Analyst will share insights on RLAM’s climate strategy: they will unravel the climate regulatory maze, highlight the shortfalls and improvements in climate metrics and provide examples of how all this influences RLAM’s ambition to be a catalyst for a Paris-aligned economy. 

*United Nations Framework Convention on Climate Change, 26th Conference of the Parties.

Climate change: navigating the path to Net Zero

What are the expectations for growth over the rest of this year and into 2022? Despite the recent slowdown, there are still reasons to expect reasonable growth in major economies for some time to come before inflationary pressures may cause interest rates to rise according to RLAM’s Head of Multi Asset, Trevor Greetham.

Trevor Greetham - Investment Clock

Trevor Greetham, Head of Multi Asset, analyses why with strong growth and inflationary pressures and the Investment Clock remaining in an overheat position, there is still no sign of interest rate rises. Trevor also discusses what may happen next after the longest expansion in US history was followed by the shortest recession on record.

Head of Sustainable Investments, Mike Fox and Fund Manager, George Crowdy, will review the rotation from growth to value stocks over the first quarter of the year, the move back to growth over the second quarter and discuss whether this switch back to growth is likely to continue. 

Mike and George will also address the improved availability of sustainability data with the shift towards more quantitative based information and debate the benefits and potential flaws of this development.

Head of Fixed Income, Jonathan Platt and Senior Client Portfolio Manager, Ewan McAlpine will cover recent developments in fixed income markets.

They will address the impact of environmental, social and governance issues, inflationary pressures and discuss the possibility of interest rate rises. Jonathan and Ewan will also review valuations across short duration products and assess their suitability within the current growth and inflationary environment.

Will Kenney, Senior Fund Manager, highlights the inflationary pressures created by an earnings recovery across a number of sectors. He examines the reasons behind this and reviews whether the rise in inflation is likely to be transitory or more permanent. Will also reviews the Global Equity team’s Corporate Life Cycle investment process focusing on the ‘accelerator’ and ‘mature’ stages.

Global equity update

Global Equity

Equity

Equities

Asset Management

Investment Management

Inflation

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Global equity update

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