Since our January update, an awful lot has happened. Russia invaded Ukraine, sparking an upheaval in an array of commodity markets. With the conflict still raging, interest rates are at their highest levels in 14 years and rising, and inflation is at a 40-year high, with many expecting it to peak in the first quarter next year. And all of this is without touching on the US midterms and the continued impact of the zero-COVID policy in China. Closer to home, we've had the passing of Her Majesty Queen Elizabeth II and His Majesty King Charles III ascending to the throne, and Liz Truss being voted in as the new Prime Minister.
Our managers explain how they are navigating current challenges and opportunities, outlining fund performance, positioning and what they believe lies ahead.
We trust these insights will help you assess the role our funds can play in your investment propositions and client portfolios.
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MANAGER VIDEOS
Videos recorded 14 September 2022
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Rathbone Global Opportunities Fund
Manager James Thomson explains current portfolio positioning and his belief that in an inflation-driven bear market, stock prices should turn up before earnings trough or before it’s clear that inflation has peaked. He reveals the £600 million of stock purchases over the past six months that he thinks should deliver outstanding returns over the next five years.
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Rathbone Income Fund
The UK often marches to a different beat to other markets. Co-managers Alan Dobbie and Carl Stick review a year in which the UK has certainly begun to edge back into favour. They also explain why, with a changed outlook for both inflation and interest rates, 2023 could be an exceptional year for UK Equity Income.
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Rathbone UK Opportunities Fund
This year has given us something of a perfect storm: the largest mid-cap drawdown relative to large-caps since 2000, ‘growth’ underperforming ‘value’ and energy to the fore. A very difficult backdrop for our fund. But now, with government support capping inflation, historically low valuations and bid activity hotting up, manager Alexandra Jackson discusses the route through.
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Rathbone Ethical Bond Fund
Manager Bryn Jones believes bond markets are starting to show some interesting characteristics, and explains how fixed income investing is returning as an important hedge. In particular, how investment grade bonds are pricing in default rates that seem too high, therefore throwing up value in this universe.
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Rathbone Greenbank Global Sustainability Fund
Manager David Harrison talks about performance in 2022 and what the team have been focusing on. He discusses where the portfolio is currently positioned and why long-term sustainability trends in energy transition and water infrastructure should support a number of his companies. He also discusses why geopolitical events could accelerate investment in sustainable infrastructure and how his fund aims to capture this opportunity.
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Rathbone HIGH QUALITY Bond Fund
Manager Noelle Cazalis highlights how her fund has performed in a difficult year for bond markets. With inflationary worries still at the forefront of investors’ minds, she explains how yields of short-dated instruments have increased. She also highlights where she is currently finding value.
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Rathbone STRATEGIC BOND Fund
Manager Bryn Jones explains how his fund aims to deliver low-volatility returns and can pull several different levers as bond market conditions change. He considers the impact of recent interest rate rises and what he expects for the year ahead. He also examines some of the key themes and opportunities he’s finding in credit markets.