China’s Two Sessions
The 14th National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC) or “Two Sessions” began on the 5th of March with high expectations of major reforms and government appointments as well as the final formalisation of Xi Jinping’s unprecedented third term as China’s leader. This is the first “Two Sessions” post Covid restrictions […]
Why discipline matters in investing
The word “discipline” will have different meanings for different people. Many may think of the military, with a high-ranking officer bellowing orders at a set of new recruits. Others may think of the discipline that is constantly being instilled in a young child by its parents and teachers.
Convertible Bonds New Issue Radar: FEMSA
Flexibility is a key feature of convertible bonds, and means that new deals can be positive for both issuers and investors, as opposed to a zero-sum game. We see that dynamic at play in a new EUR 500 million, 3-year maturity exchangeable bond launched after the European market close on 16 February by FEMSA—Fomento Economico […]
Share buybacks…
…and the importance of sensible capital allocation “When a Chief Executive Officer is encouraged by his advisors to make deals, he responds much as would a teenager boy who is encouraged by his father to have a normal sex life. It’s not a push he needs.” Warren Buffet If I told you that there was […]
2023 Outlook for Emerging Markets
Emerging Markets faced three main headwinds in 2022, namely, China’s zero Covid-19 policy, aggressive monetary policy tightening globally and the Russian invasion of Ukraine. We see two out of those three factors turning into potential tailwinds in 2023. Firstly, China has already started to reopen its economy; therefore, the main question is the impact on […]
China: Moving on from Covid
Since 2020, economic growth within China has been heavily affected by the lingering impact of policy tightening and a pendulum of Covid lockdowns. As a result, 2022 saw the MSCI China index decline 23.5% [1], underperforming the MSCI Emerging Market Index. However, more than ever, we are positive in our stance on China equities, this […]
Six reasons to consider Convertible Bonds in 2023
In 2022, Convertible Bonds (CBs) experienced difficulties which we now believe are broadly reversing. Analysing the drivers of recent strong performance in the asset class, we are encouraged by these dynamics. We think convertible bonds can play a helpful role in a portfolio, potentially providing strong tailwinds to returns. Here are 6 reasons why: Effects […]
Redwheel Global Equity Income: 2023 Outlook
“We believe 2023 will see a return to the tortoise way of investing. It’s why we believe that a strategy that puts compounding a higher yield than the market at the centre of generating total return is appropriate; why having a discipline on valuation will be beneficial once again and why a return profile that […]
Review: The Price of Time (The Real Story of Interest) by Edward Chancellor
Edward Chancellor was already the author of two books in my top ten investment books list; Devil Take the Hindmost: A History of Financial Speculation and Capital Returns (the latter is a compendium of investment letters written by Marathon Asset Management and edited by Chancellor) and I would now add a third to that list. […]
Podcast – The Tortoise way of investing
In this podcast, Adam Lewis (Content Editor, Bonhill Group) is joined by Nick Clay (Potfolio Manager, Redwheel Global Equity Income Strategy) to discuss current market conditions and why despite inflation and fears of a recession, we could see a return to normality for markets.