What comes to mind when you think of income investing? Probably mature companies, legacy industries, developed markets, and low growth. Join us to hear from Matthew Williams, Senior Investment Director as he discusses why investors should consider diversifying into emerging markets.

Workshop Objectives:

1. Learn about why investors should consider diversifying into emerging markets.
2. Overview of abrdn's successful approach to income investing.

Company Profile: We invest to help our clients create more. More opportunity. More potential. More impact. We offer investment expertise across all key asset classes, regions, and markets so that our clients can capture investment potential wherever it arises. By combining market and economic insight with technology and diverse perspectives, we look for optimal ways to help investors navigate the future and reach their financial goals. And by putting environmental, social and governance (ESG) considerations at the heart of our process, we seek to find the most sustainable investment opportunities globally.

Amidst uncertain markets the case for investing in short-dated bonds persists, with the asset class offering lower interest rate risk, less credit risk and access to a lower volatility segment of the bond market. Adopting a global approach also helps to maximise the opportunity and reduce volatility. Iain Buckle will provide an insight into the short-dated investment grade market and the attractive opportunity available. 

Resilience is also key, including the management of ESG and climate risks. Iain will also outline our approach to managing climate transition risks, and how the Aegon Global Short Dated Climate Transition Fund can help reduce the carbon intensity and climate risk in fixed income portfolios without compromising investment returns.

Workshop Objective: Insight into the current opportunity of the short-dated investment grade bond market, as well as the illustration of an approach to identifying climate transition risks and actively managing climate change.

Explores the rise of artificial intelligence (AI) and its impact on the U.S. growth equity market.  While we do need to separate hype from reality, AI has the potential to drive substantial long-term growth for organizations that can leverage its capabilities to innovate and optimize their operations. By augmenting human capabilities, streamlining processes, and uncovering new insights, AI has the potential to unlock previously untapped growth opportunities. While AI Adoption is still in it’s early stages, we are already seeing near term financial impact on companies which are positioned to benefit from infrastructure build outs”. Companies that provide the hardware, software, and related infrastructure that allow other companies to develop and deploy AI applications might be the early winners. In the near term, AI could magnify the dominance of big tech companies that have made substantial investments in AI technologies, thereby sustaining the market concentration observed across U.S. large cap space. Though long-term winners in AI are far from certain, AI will be a crucial factor that can sustain and amplify the advantage of growth equities, and provide new opportunities for investors to compound returns in this exciting space.

Workshop Objective: Discover why AI will be a crucial factor that can sustain and amplify the advantage of growth equities and provide new opportunities for investors.

Company Profile: Allspring Global Investments™ is an independent asset management firm with more than $547 billion in assets under advisement*, over 20 offices globally, and investment teams supported by more than 460 investment professionals. Allspring is committed to thoughtful investing, purposeful planning, and inspiring a new era of investing that pursues both financial returns and positive outcomes. For more information, please visit www.allspringglobal.com.
 *As of June 30, 2023. Figures include discretionary and non-discretionary assets.
This information is not a Marketing Communication and is provided for informational purposes only. For professional/qualified clients. Recipients who do not wish to be treated as professional should notify their Allspring contact immediately. 
Allspring Global Investments™ (Allspring) is the trade name for the asset management companies of Allspring Global Investments Holdings, LLC (Allspring Holdings), a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These companies include, but are not limited to, Allspring Global Investments (UK) Limited (Allspring UK), an investment management company authorised and regulated by the UK Financial Conduct Authority, and Allspring Global Investments Luxembourg S.A. (Allspring Luxembourg), authorised and regulated by the Commission de Surveillance du Secteur Financier. Allspring Luxembourg has branches in Frankfurt, Paris and Milan and is allowed to provide services on a cross-border basis in the EEA. Allspring UK does not provide services to retail clients, the Financial Services and Markets Act 2000 rules for retail clients will not apply and the United Kingdom Financial Services Compensation Scheme is not available. 
THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION. 
Past performance is not a guarantee or reliable indicator of future results. All investments contain risk. Unless otherwise stated, Allspring is the source of all data (which is current or as of the date stated); content is provided for informational purposes only with no representation regarding its adequacy, accuracy or completeness; views, opinions, assumptions or estimates are not necessarily that of Allspring or Allspring Holdings and are subject to change without notice; and information does not contain investment advice, an investment recommendation or investment research, as defined under local regulations.

Emerging market equities have been disappointing for much of 2023, particularly in China, where initial optimism over reopening has not followed through. Outside of China, emerging economies have shown healthy fundamentals and have the potential to support growth through more supportive monetary policy than developed markets. EM equities continue to trade at multi-decade lows against developed markets and we see catalysts for growth on the horizon. Amidst a volatile market environment, we would expect the discipline of stock selection to thrive. Raheel Altaf manages the Artemis SmartGARP Global Emerging Markets Equity Fund, which has delivered consistent outperformance across a range of market conditions.

Workshop Objective: Raheel Altaf will talk about investing in emerging markets, focusing on his contrarian approach and highlighting the importance of maintaining a valuation discipline, while trying to identify the winning companies in this space.

Company Profile: Artemis is a leading UK-based fund manager, investing in the UK, Europe, the US and around the world. The firm opened for business in 1997 and manages some £23.9 billion* across a range of funds, two investment trusts and both pooled and segregated institutional portfolios. A number of these are now available to investors in continental Europe and Singapore. Independent and owner-managed, Artemis’ aim has always been to offer exemplary performance and client service. All Artemis’ staff share these two precepts – and the same flair and enthusiasm for fund management.  *Source: Artemis as at 31 May 2023

Investing in emerging markets debt provides investors with a variety of investment options; from countries with strong institutional pillars to ones which are establishing them for future generations. Emerging markets debt (EMD) has historically provided investors with low beta and correlation to US Treasuries and the S&P 500, thereby providing an opportunity for diversification. Emerging markets debt can be accessed through a variety of investment vehicles, some that mimic common benchmarks. Deconstructing a benchmark’s risk factors can help investors understand some of the added risks they assume and can be leveraged by investment managers to identify attractive opportunities that are less correlated and possibly out of benchmark, thereby providing more well-rounded portfolio. 

Workshop Objective: We will dive into emerging markets debt benchmark construction, explore embedded non-EM risks, and uncover the best relative value specifically in what we call the ‘tail end’ of emerging markets.

Company Profile: Artisan Partners was founded in 1994 with the objective of producing high value added and differentiated investment outcomes for institutional investors, through identifying, attracting and retaining high caliber talent in long term asset classes. We provide the resources of a full-scale, global firm paired with the independence of a boutique to each of our autonomous investment teams, who have the freedom to execute its own process based on its original research and creative perspectives. While our teams differ across market capitalizations, geographical regions, investment styles and product offerings, they are all highly incentivized to deliver long-term value for our clients.

Join Lee Qian, investment manager of Keystone Positive Change Investment Trust, as he discusses how both public and private companies in the portfolio are helping to redraw the future: addressing some of the world’s biggest challenges whilst generating attractive long term returns. How do the drivers of positive change and investment returns go hand in hand?

Workshop Objective:

-    How critical global challenges, such as the environment, can be addressed in an equity portfolio context 
-    How companies can contribute toward solving these challenges alongside providing attractive investment returns
-    How alternative sources of research can fuel understanding and provide investment edge 

Company Profile: Baillie Gifford’s sole business is investment management. Since the company was founded in 1908 it has been a partnership. Today it is owned by 57 partners all of whom work in the business.

We currently manage or advise some £234.2bn on behalf of clients worldwide. 

Renewable energy and sustainable infrastructure are at the epicentre of many global initiatives that are focused on driving positive environmental outcomes, but they also can provide new opportunities for investors. More than $100 trillion in investment will be required over the next several decades to achieve these critical global goals. We believe capturing this multi-decade, multi-trillion dollar opportunity requires an active approach. Our focused and dynamic approach helps provide investors with a unique way to access this disruptive opportunity.

Workshop Objective: Educate our audience about the merits of our unique investment approach.  We focus on companies that exhibit many of the characteristics of traditional infrastructure investments to mitigate risk.

Company Profile: Brookfield Oaktree Wealth Solutions delivers to private wealth investors, in partnership with their financial advisors, the unparalleled alternative investment expertise of Brookfield Asset Management and Oaktree Capital Management 

We offer real asset and credit strategies, across public and private markets and the liquidity spectrum, that are built on a history of investment excellence, integrity, and an alignment of values. 

We aim to deliver the highest-quality investing solutions, insights, and specialized support to help advisors serve the unique investment goals and time horizons of each investor. 

Aggressive tightening of monetary policy over the past 18 months has created a potential once-in-a-generation opportunity to access this asset class. Either central banks pause their hiking cycle and rates stay higher for longer, in which case investment grade investors continue to earn the current high level of carry, or they pivot and start easing policy. In that situation, IG bonds earn both the current carry and benefit from the duration tailwind from falling rates. 

This session covers the outlook for investment grade over the rest of 2023 and beyond and outlines the benefits of maintaining a high-quality and global focus.

Workshop Objectives: 

• Why get out of cash and into investment grade bonds now
• How diversifying through global exposure is a cut above a UK-only approach
• The strengths of active management / security selection

Company Profile: Capital Group is one of the oldest and largest asset management companies in the world, managing multi-asset, equity and fixed income investment strategies for different types of investors. 

Since 1931, Capital Group has been singularly focused on delivering superior, consistent results for long-term investors using high-conviction portfolios, rigorous research and individual accountability. We build our investment strategies with durability in mind, backed by our experience in varying market conditions. Fundamental proprietary research forms the backbone of our approach, provided by our integrated global network of more than 450 experienced investment professionals, with an average portfolio manager investment experience of 27 years. 

Today Capital Group works with financial intermediaries and institutions to manage more than US$2.31 trillion in long-term assets for investors around the world.

1All data as at 31 Mar 2023 and attributed to Capital Group, unless otherwise stated.

The new world post 2022 and 2023, is characterized by higher yields, higher real rates and larger spread etc. We expect the rest of 2023 and as we enter 2024 to see a multitude off opportunities to emerge as the recession scenario clears out. We believe that duration will play out first especially in countries that are ahead of the hiking cycle (ie. Latin American local emerging debt, US duration etc). Currencies should also continue to play an important role either as a hedging tool as they did in 2022 or even as an alpha source. Therefore, we think that a "Global Macro Fixed Income" fund that seeks to "cross the cycles" and uses both long and short strategies to maximise returns while reducing risk in all market circumstances, addresses our clients’ current challenges.

Workshop Objective:  Abdelak Adjriou, portfolio manager, will discuss how a completely non-benchmarked, active, flexible global macro fixed income fund, is crucial to navigate across cycles and how the current environment can create investing opportunities.

Portfolio Manager, James Hanford, will provide an overview of the Comgest Growth Europe ex UK fund and discuss the characteristics the team look for to identify to find ‘marathon runners’ that get better with age, and why they’re the bedrock for the compounding benefit of a quality growth portfolio.

Workshop Objective: We will discuss the idiosyncratic growth drivers of the portfolio
companies and how their counter-cyclicality can protect earnings in uncertain market environments.

Company Profile: Comgest is an independent, global asset manager with headquarters in Paris and offices on the ground in the countries in which we invest. Since inception in 1985, Comgest has pursued a long-term Quality Growth and responsible investment style with the objective of
selecting quality companies with solid prospects for sustainable growth. With more than 200 employees of 30 different nationalities, Comgest serves a diverse global client base and manages assets of over £24bn (as of end 2022). The majority of employees are also shareholders of the business, which helps align our actions with our clients' interests.

Contrarius is a bottom-up, valuation-based, contrarian active manager taking advantage of opportunities in global markets. Our presentation outlines the application of the key components of our investment philosophy, and demonstrates how the current disparity in the market creates opportunities across both growth and value-oriented areas. Our very different portfolio offers investors an opportunity to invest in a Fund which is truly different from conventional offerings. Our presentation also demonstrates how the consistent application of our bottom-up, contrarian investment philosophy has taken advantage of disparity over time resulting in a fund that has meaningfully outperformed the benchmark MSCI World Index, the average manager, the MSCI World Value Index and the MSCI World Growth Index since its inception on 1 January 2009.          

Workshop Objective: To introduce delegates to Contrarius’ contrarian investment philosophy which has meaningfully outperformed the MSCI World, MSCI Growth and MSCI Value indices, and the average manager, since its inception on 1/1/2009. 

Company Profile: Contrarius’ objective is to create long-term wealth for our investors through superior long-term investment performance. Our portfolios are typically very different from our peers demonstrating our contrarian approach.

Our largest fund, Contrarius Global Equity Fund, has meaningfully outperformed the benchmark MSCI World Index, the average manager, the MSCI World Value Index and the MSCI World Growth Index since its inception on 1 January 2009.

We believe that long-term performance is driven by the consistent application of a sound investment philosophy. The key characteristics of our investment philosophy are that it is contrarian, valuation based, long-term and based on proprietary fundamental research. For more information, visit www.contrarius.com.

Bearish? Bullish?  Uncertainty seems high on the S&P 500 as there seems to be just as many data points to support either market view. Already up ~15% in 2023, investors face the rest of 2023, while then entering into the 2024 presidential election. Interest rates, inflation, valuations and recession risks seem to be coexisting with an AI-driven productivity boom, a potential bottom in Earning Per Share and a view that the worst is behind us. Interest Rates may appear to be peaking/have peaked. Long term investors should be wary that a 15% correction seems equally as likely as a 15% rally from here. Can an investor have their cake and eat it too? First Trust will unveil their solution to investors seeking upside participation in the market while aiming to provide a level of downside protection.

Workshop Objectives: 

•    Communicating First Trust’s economic forecast
•    Understanding the mechanics of target outcome ETFs
•    Highlight CBOE Vest Strategy’s potential downside protection and upside participation
•    Introduce First Trust’s suite of Target Outcome UCITS ETFs

 

- Being a first mover
- The changing face of UK government support for renewable energy
- The benefits of diversification within the infrastructure sector

Workshop Objective: To showcase how diversification in the UK infrastructure sector can benefit investors.

Company Profile: The Gravis approach to fund management is perfectly depicted by the company’s tortoise logo: slow, steady, and consistent. We specialise in Funds that do something a little different, providing investors with exposure to the more stable and predictable side of many of today’s exciting themes, resulting in reliable, long-term income from alternative sectors.

A decade of low inflation and low rates have seen total returns dominated by capital growth coming mainly from higher price-to-earnings (PE) multiples, rather than dividends. This, however, is a historical anomaly. Before 2011 the majority of global returns were driven by reinvested dividends, not rising multiples. The era of cheap money over and PE expansion alone is unlikely to drive the same extent of gains over the next decade – making dividends and dividend growth an important part of total shareholder returns again. A new regime of higher rates and inflation volatility also heralds the importance of an open minded approach as to where and when opportunities will present themselves. Dividends and a flexible mandate, to seek the most compelling stock market opportunities, are likely to be important features of equity markets over the next decade.

Workshop Objective: Understand how the future drivers of equity markets may be different to the recent past; we shouldn’t rely on one factor or style to outperform in a more uncertain economic environment.

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

This content is for Professional Clients only and is not for consumer use.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

Issued by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.

The move higher in yields over the last year has created pockets of opportunity in the bond market. With Central Banks nearing the end of their hiking cycles and a possible recession on the horizon, bonds are back in the spotlight. Viren Patel – Global Fixed Income Portfolio Manager – will discuss the current macroeconomic backdrop and focus on how he is thinking about portfolio construction in the present market context. 

Workshop Objectives: 

-    Assess opportunities in the bond market
-    Reviewing portfolio construction within the current macroeconomic 

Company Profile: At J.P. Morgan Asset Management we have one key goal: to help our clients build stronger portfolios. For more than 150 years, we have been doing just that — for institutions, intermediaries and individuals alike. We have a deeply resourced global network of investment professionals who take a research-driven approach. Our investment professionals analyse every detail to uncover opportunities and risks to help our clients build stronger portfolios. Our global team of market strategists takes the complexity out of key market issues, giving you the incisive market insights you need to make the right investment decisions. With more than 150 years of investment experience, we thrive on responding dynamically to your evolving needs — across asset classes, regions and market cycles. With a vast range of investment opportunities spread across asset classes and regions, our asset allocation expertise can help you exploit the full potential of diversification, achieving your investment goals along the way. Our business is built upon the core principle of putting our clients’ interests first. Our dedicated teams with deep industry knowledge fully invest in each client relationship—taking the time to understand current needs, anticipate opportunities, and develop innovative customized solutions.

Ninety One have developed the Carbon Avoided Universe to identify the true enablers and beneficiaries of the multi-decade shift to a low-carbon economy.  This diverse group of stocks is underrepresented in global stock indices suggesting global investors are significantly underweight this opportunity and can benefit from its diversification. Beyond the positive environmental impact, there are two key investment reasons to consider allocating to these companies, says Ninety One’s Deirdre Cooper. First, given the vast investment that will go into decarbonisation in the years ahead, these companies have significant long-term return potential. Second, because these companies are exposed to a powerful structural economic growth opportunity and therefore have different long-term drivers of success than other companies, they can add diversification to an equity portfolio.

Workshop Objectives: For investors to understand the significant long-term return opportunity in investing in climate-solutions companies and the powerful structural growth opportunity they are exposed that can add diversification to an equity portfolio.

Company Profile: Investing for a world of change Ninety One is an active, global investment manager managing £129.3 billion in assets (as at 31.03.23). Our goal is to provide long-term investment returns for our clients while making a positive difference to people and the planet.

Established in South Africa in 1991, as Investec Asset Management, the firm began as a small start-up offering domestic investments in an emerging market. In 2020, as a global firm proud of our emerging market roots, we demerged to become Ninety One.

We are committed to developing specialist investment teams organically. Our heritage and approach let us bring a different perspective to active and sustainable investing across equities, fixed income, multi-asset and alternatives to our clients - institutions, advisors and individual investors around the world. 

Simon Griffiths, Portfolio Manager for the NB Global Sustainable Value Fund, will discuss key elements of the team’s approach which have contributed to the fund ranking in the top 13% vs. peers over its 9-year track record.

He will highlight how a more diversified style of value investing can lead to a more robust, higher quality portfolio able to weather diverse market environments.  He will also demonstrate the potential to add value by incorporating ESG and sustainability objectives through quantitative analysis and engagement.  

Finally, he will explain the expected return profile of the fund under realistic market scenarios that include sticky inflation, tightening credit conditions & pressured earnings, and heightened geopolitical risks & market volatility.

Workshop Objectives: To understand the benefits of a more balanced approach to Global Value investing and how this can contribute to more robust portfolios better able to navigate different market environments 

The built environment accounts for close to 40% of global CO2 emissions, so reducing the carbon footprint of the real estate sector is essential. We explain how our investment team identifies the real estate companies around the world that are leading decarbonisation efforts, and why we expect many of these companies to outperform their peers over time.  We also highlight the drivers behind our view that the asset class is poised to outperform both cyclically and longer term.

Workshop Objective: With an end in sight to central bank tightening, and listed global real estate valuations/market sentiment both close to all-time lows, we describe how investors can capitalise on a rare investment opportunity, and why Nuveen’s unique proprietary carbon reduction  framework can benefit returns.
 

Company Profile: Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.1 trillion in assets under management as of 30 Jun 2023 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com. 

Looking back on 50 years of bond investing, these are some of the most exciting times we have seen for the asset class.

For roughly a decade, record-low interest rates across the globe left investors starved for income - but then came 2022. Today, following a sharp repricing in yields, bond markets look much more attractive and investors are once again seeing the ‘Income’ in ‘Fixed Income’. Whether you are in it for income or total return, these entry yield levels mean valuations look attractive once again.

Capturing these opportunities is what PIMCO’s Income Strategy was designed to do. UK investors can access our fund suite through two Strategic Bond funds: one investing in Sterling markets, the other in Global.

Workshop Objectives: To explain the core considerations for investors looking to allocate to income-generating investment strategies, focusing on multi-sector fixed income and PIMCO’s Income strategy.

Company Profile: PIMCO is a global leader in active fixed income with deep expertise across public and private markets. We invest our clients’ capital across a range of fixed income and credit opportunities, leveraging our decades of experience navigating complex debt markets. Our flexible capital base and deep relationships with issuers have helped us become one of the world’s largest providers of traditional and nontraditional solutions for companies that need financing and investors who seek strong risk-adjusted returns.

Bryn Jones, Head of Fixed Income at Rathbones, will take you through his Ethical Bond fund presentation. After a brief overview of the process and team, Bryn will outline his current thinking on credit spreads, rates markets and gilt yields, plus the team’s focus on legacy bank debt and some of their recent successes in this space. He’ll also explain why he believes we’re in an Anthropocene age and some of the interesting investments this is driving. Finally, Bryn will highlight the performance of the fund.

Workshop Objective: To get a deep understanding of credit and government bond markets and why corporate bonds are an interesting place to invest at this point in the cycle.

Company Profile: Rathbone Unit Trust Management Ltd. (Rathbone Funds) is a leading UK fund manager, offering equity and bond unit trusts, a core multi-asset fund range and a sustainable multi-asset fund range to meet your capital growth and income requirements. An active management house, specialising in investment management for the retail investor and segregated institutional accounts. All of our unit trusts qualify for inclusion in ISAs (Individual Savings Accounts). We are a wholly-owned, London-based subsidiary of Rathbones Group Plc. 

Through its subsidiaries, Rathbones Group Plc manages £60.9 billion of client funds, of which £11.4 billion* is managed by Rathbone Unit Trust Management Limited*.

*Funds under management at 31 March 2023

High inflation and increasing borrowing costs have led to a repricing of assets globally. This has occurred while the supply of new stock has hit record lows, driven by the escalating costs of raw materials. Sustainability remains a dominant issue, and landlords offering modern, eco-friendly accommodation are experiencing remarkably high demand. Following the repricing that took place in 2022, the outlook for real estate in 2023/24 appears strong. The Global Cities Fund continues to concentrate on several key subsectors, including data centres, logistics, apartments, and healthcare. These sectors are benefiting from a structurally increasing demand.  

Workshop Objective: Introduce the disruptive trends in real estate, the importance of a data-driven, sustainability-led approach, the impact of interest rates and high inflation, and why the outlook is now compelling.

Company Profile: As a global asset and wealth manager, Schroders delivers a broad range of investments designed to meet the diverse needs of institutions, intermediaries and high net worth individuals.
For over 200 years we have built principled partnerships with our clients, putting them at the centre of everything we do. As an active investment manager we believe that we have an important role to play in driving better outcomes for our clients and society as a whole

The value trade faltered in the first half of 2023 in the face of hawkish interest rate policy. Growth stocks appear to have digested higher interest rates and rallied on structural support from the artificial intelligence trade. The premium price on earnings in growth sectors has become a cause for concern for investors in mega-cap US equities. Inflation data continues to moderate, but so too does the labour market, which was seen as a basis for the strong consumer. Key leading economic data is starting to align with bond market’s more bearish outlook. It may be time for caution.
We see ways to diversify away from US mega-cap stocks and take a more defensive approach with stable dividend stocks (low beta) or midcap equities (home bias) US equity allocations. 

Workshop Objectives: In this session, we will discuss the opportunity to protect gains from the rally of the ‘magnificent 7’ in US equities, by diversifying across the market capitalisation spectrum with an allocation to Dividend Aristocrats or US midcaps.