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.
Investors humming to a different tune
‘This is just a normal market environment. The abnormal period was the one we have been in since 2008, but because everything went on for so long, investors have somewhat forgotten about cycles and volatility.’ Nick Clay, manager, Redwheel Global Equity Income Fund Set against a backdrop of inflation hitting multi decade highs and increased […]
All kinds of everything…
Rosemary Scallon, better known as Dana, was the winner of Eurovision in 1970 with “All kinds of Everything”. Hers was a first win for Ireland on the way to seven titles, one better than arch Eurovision rivals Sweden! While I suspect my UK audience are not huge Eurovision fans, given Ukraine’s victory this year and […]
Share buybacks vs. dividends
We are often asked: ‘why not look at total return yields to shareholders (dividends and share buybacks) rather than simply dividends?’ In countries such as the USA, share buybacks are favoured over dividends by companies, and it would appear by investors too. European companies may also be increasingly favouring this method of “return to shareholders”. […]
COP27- the return of the fossil lobby
In 2021, oil companies were excluded from sponsorship deals and official involvement at the COP26 Glasgow climate summit. A year on and there is a much warmer welcome for the industry at COP27. The decision in Glasgow was right on sponsorship but wrong, in my view, on participation. We need the oil companies, and particularly […]
Reversion to long-run mean
Having started working in asset management thirty-four years ago, I used to pride myself on the fact that I had experienced a variety of financial market conditions, witnessed many economic cycles and seen booms, busts and manias come and go. I have recently been compelled to challenge this notion, which has made me consider that […]