Industry news and views from Panacea and our partners.
Columbia Threadneedle Investments
Columbia Threadneedle Investments: An improved toolbox to manage volatility and provide income
Concerns around inflation have driven core government bond yields upwards to levels not seen for more than a decade.
Columbia Threadneedle Investments: Multi-Manager People’s Perspectives
Our latest podcast has arrived this week, featuring Ryan Grabinski of Strategas Research Partners, Adam Norris and myself reviewing our forecasts for 2022 and thinking about investment themes for 2023. It can be downloaded or streamed from Apple Podcasts via this link. Reviews so far include “it’s a bit boring” from my 9-year-old son. I feel some quantitative tightening coming to this week’s pocket money…
Columbia Threadneedle: Has recession been cancelled?
I’ve been suggesting that the developed world was heading for recession for some time. In Europe, sky high energy prices were to be the cause. In the US it was a different argument: a recession was needed there to control inflation.
Columbia Threadneedle Investments: Is US inflation under control?
This is a huge week for markets. The big three central banks all meet and we have crucial data out on US CPI, retail sales, flash PMIs and UK inflation. Wow!
Columbia Threadneedle Investments: Real Estate: Preserving Value
COVID restrictions had largely been lifted across Europe and the investment community was optimistic about the strength of the real estate market – fundamentals were solid, the occupational market was robust and there was a realistic level of achievable returns.
Columbia Threadneedle Investments: Focus on quality for success in equities
Investors should not expect everything to go ‘back to normal’ in 2023, says Melda Mergen. Higher inflation and a weaker economic environment will mean not all companies will thrive.
Columbia Threadneedle Investments: No more bad news should be good news in 2023
After a dismal year for markets, William Davies gives his thoughts on risks and opportunities in the market as we head into 2023. While there is plenty to be cautious about, a repeat of 2022 seems unlikely.
Columbia Threadneedle Investments: No more bad news should be good news in 2023
After a dismal year for markets, William Davies gives his thoughts on risks and opportunities in the market as we head into 2023. While there is plenty to be cautious about, a repeat of 2022 seems unlikely.
Columbia Threadneedle Investments: A challenging year is past
It’s been a difficult year for investors with almost every major listed asset class posting negative returns. There’s been a modest rebound as we approach the end of the year, nevertheless, after a number of years of relative outperformance, Investment Companies have underperformed the FTSE All Share Index over 2022.
Columbia Threadneedle: When patience, guidance and commitment pay off
Despite some very obvious challenges, private equity has had a better year than might have been expected.
Columbia Threadneedle: Property – suffering from subsidence or on a solid foundation?
The era of ultra-cheap money has come to an end, inflation and interest rates are rising, recession is waiting in the wings. But is it all doom and gloom?
Columbia Threadneedle: Are we heading for a Santa Claus rally?
Our Chief Economist, Steven Bell, explains why consumers are raiding their covid piggy banks but warns of a January ‘spending’ hangover.
Columbia Threadneedle: Is the bear market in European equities over?
There’s been a remarkable rally in European equities and the EURO STOXX 50 is up 20% since the lows in late September. Dollar-based investors have enjoyed an even bigger increase.
Columbia Threadneedle: Relative stability to close out the year
Taking five charts of key indicators, Robert Plant, Portfolio Manager, Multi-Asset Solutions, analyses how they inform us about the future path of interest rates and the likely length and severity of impending recession.
Columbia Threadneedle Investments: Recession Watch: Europe and USA
We’ve been talking about recession for most of this year. But unemployment has stayed very low in most countries and if you just watched the equity markets, you’d think the risk of recession had receded recently. Most markets are up 10% or so in the last month, led by Europe. So what’s going on?
Columbia Threadneedle Investments: Celebrating five years of the truly active, low-cost, CT Universal MAP range
In 2017 Britain invoked Article 50 of the Lisbon Treaty, triggering the initiation of proceedings to break away from the European Union. The Brexit vote, of the previous year, had been merely advisory, activating Article 50 meant there would be no turning back.
Columbia Threadneedle Investments: Responsible Investment Quarterly Q3 2022
The third quarter of this year continues to be dominated by the implications of the energy crisis, but there was also a significant new development in the US, with Congress passing the Inflation Reduction Act (IRA). We believe both these events will accelerate the uptake of renewables and accelerate decarbonisation over the next decade.
Columbia Threadneedle: UK autumn statement: bleak times
The Bank of England, the Office for Budget Responsibility and most outside forecasters agree that the UK is on the brink of recession. The textbook response would be a fiscal stimulus. Yet the new chancellor, Jeremy Hunt, announced on 18 November the exact opposite: a major fiscal contraction with higher taxes and lower spending. His predecessor Kwasi Kwarteng’s ill-fated mini-budget was characterised as pressing down on the accelerator just as the Bank of England were hitting the brakes; we now have both the fiscal and monetary authorities hitting the brakes hard just as the economy suffers a huge headwind from higher food and energy prices. Tough times indeed.
Columbia Threadneedle: When will central banks stop hiking rates?
Our Chief Economist, Steven Bell considers the issues facing central banks and suggests that 2023 could be a time to add risk to portfolios.
Columbia Threadneedle: There’s no such thing as a risk-free lunch
In this update we provide an overview of asset allocation and cast our eyes forward to 2023.
Columbia Threadneedle: ESG knowledge shared: October 2022
Keep up to date with responsible investing in our monthly roundup of highlights – interesting events, articles we’re reading, podcasts and more.
Columbia Threadneedle: The power of historical context
Are we really living in abnormally volatile times? Is the negative sentiment in markets extreme or warranted?
Columbia Threadneedle: Are US corporate earnings set to tumble?
The markets are heavily focussed on economic data at present with US CPI the highlight this week. As a paid-up member of the economists’ trade union, I’m all in favour of that but in this week’s macro update I want to look at something else: the prospects for US corporate earnings. And let me warn you, I think the outlook is bleak.
Columbia Threadneedle: Exploring the attractions of private equity for the growth investor
Private equity has been a dedicated element of F&C Investment Trust’s portfolio over many decades.
Columbia Threadneedle: Adviser Edge: On the Road
Join us at one of 15 locations nationwide in September and November for an interactive and in-depth seminar, accredited for 2.5 hours of structured CPD. The topics covered will be 'Using trusts for estate and inheritance tax planning' and 'FCA Consumer Duty – what is that all about?’.
Columbia Threadneedle: ESG Viewpoint – Can mining be a responsible investment?
Its environmental and social impacts can make mining hard to square with a responsible investment approach. As the world shifts away from fossil fuels – a move that increases demand for ‘transition metals’ – we explore the need to think again.
Columbia Threadneedle: Assessing the impact
A range of factors have driven the rapid growth in sustainability-orientated investing. Greater awareness of issues like climate change mean that individuals are increasingly keen to align their investments with broader beliefs and consumer behaviours. At the same time, regulatory shifts mean that Environmental, Social and Governance (ESG) related factors and preferences need to be considered as part of the financial planning process.
Columbia Threadneedle: Insights Have we avoided a financial crisis?
In this week’s macro update we consider whether the dramatic U-turn by Britain’s new Chancellor has avoided a financial crisis in the UK. We will also look at another sudden announcement – a plan by the German government to cap their energy bills, a plan that is bigger, bolder and more complicated than Liz Truss’s.
Columbia Threadneedle: Food waste – A wasted opportunity?
Estimates suggest that one third of food is lost or wasted across the entirety of the value chain. The economic, environmental, and social costs of this are staggering: the annual value of wasted food is commonly estimated around $1 trillioni. It accounts for 8-10% of global greenhouse gasesii, while contributing to water use, pollution from agricultural inputs, and increasing pressure on biodiversity and land conversion. Social implications include contributing to food insecurity and reduced productivity.
Columbia Threadneedle: Is Sterling doomed?
Kwasi Kwarteng’s ‘budget in all but name’ has not been received warmly in financial markets. The energy price cap scheme likely means we’ve avoided a near term recession but the cost in terms of extra government borrowing is huge, with the Chancellor doubling down with tax cuts that raised borrowing even further. Just how far is anybody’s guess as he prevented the Office for Budget Responsibility (OBR) from working out the numbers properly. My guess is that the OBR would have forecast even bigger budget deficits. For example, the direct cost of the higher rate tax cuts is £6bn but the new Chancellor has assumed that ‘behavioural changes’ would reduce that to £2bn. This seems unlikely.