Article last updated 22 July 2025.
As we head into a new year, our lead article explores some of the misconceptions that often cloud the debate about the relative merits of ‘value’ and ‘growth’ investment styles, and how each can complement the other in a balanced portfolio with a focus on quality.
Our next feature on page 5 looks into how and why governance often gets neglected in environmental, social and governance (ESG) investing, with some so–called ESG ratings wildly missing the mark. We explain why our Stewardship team’s unglamorous work in analysing corporate governance is so vital.
With the outlook for global growth and investment returns still heavily clouded, how can we tell when it’s time to change tack into a fairer wind? On page 6 we explore what leading indicators could tell us that a lasting end to the recent economic and market weakness might be on the way.
After what was undoubtedly a terrible year for bond markets, we look at the potential for attractive returns from corporate bonds in the months ahead on page 8 — will there be sunshine after the rain?
Finally on page 9, we think about a long-term thematic investment opportunity. If net zero targets for reducing carbon emissions by 2050 are to be met, existing building stock will need to be retrofitted to higher energy efficiency standards. The scale of this task is daunting and that presents an interesting investment case.
Liz Savage and Ed Smith
Co-chief investment officers
