The return of the total return kings: There and back again
In April 2024, Ian Lance, Co-Head and Portfolio Manager, Redwheel Value & Income, published The Return of the Total Return Kings[1], examining the persistent and widening valuation gap between UK equities and the US market. Lance argued that this gap was not a reflection of deteriorating fundamentals but the consequence of decades of pension fund […]
Focus convertibles: Passive in principle, active in practice
Key takeaways Redwheel’s Enhanced Index Focus Convertibles Strategy offers a low-cost, index-oriented way to achieve a balanced exposure to global convertibles. In its first year, the Strategy outperformed its benchmark while maintaining low tracking error and high benchmark correlation. It aims to maintain close index alignment through constant rebalancing and three implementation levers […]
Where nature meets necessity: Six demand engines behind the natural capital opportunity
Natural capital is often framed as a narrow sustainability theme. A more useful way to think about it is that the biodiversity it supports and the ecosystem services that flow from it are part of the operating backbone of the real economy: the water, waste and environmental systems that allow cities to function, industries to […]
How datacentres are reshaping power systems – and what it means for investors
Key takeaways Surging datacentre and AI power demand is reshaping electricity markets in North America and Europe. Ageing grids and rapid renewables deployment are driving a structural capex cycle across the power system. Long-dated, premium-priced power contracts are de-risking utility business models and supporting potential re-ratings. We see compelling opportunities across carbon […]
The risk of measuring risk: Why high tracking error may be the prudent choice in a concentrated market
Risk, in the world of equity portfolio management, is rarely a simple concept. The origin of the word is a topic of some debate. Its most plausible etymological route traces back to the medieval Latin ‘resecare’ – literally, ‘to cut’ – which passed into the merchant nautical language of the Mediterranean as ‘risicum’. In the […]
The ‘Fab 4’ become the ‘FOMO 3’
FOMO 3 – Taiwan Semiconductor, Samsung Electronics & SK Hynix The growing market capitalization of the largest companies in equity indices has become a serious problem for investors trying to construct diversified equity portfolios. The MSCI Emerging Markets Index is one of the most extreme examples of issuer concentration, with the three biggest companies accounting […]
When it rhymes it pours
Where have I heard this song before A man’s music streaming history is a deeply personal thing; see his ‘Recently played’ list and see his soul (and, probably, his secret Taylor Swift obsession). For me, one of my favourite genres – despite living in leafy London virtually all my life – is the deep twang […]
Two beautiful games
Right now, for those of us bleary‑eyed football fans following England’s campaign, the World Cup is a fantastic – if tiring – sporting spectacle. For most, it is the joy of the sport alone that is compelling – with many of us (your author included) staying up to the small hours to watch a gripping […]
ASEAN’s lost decade: Is value finally emerging?
Some investors believe the ASEAN tigers of the 1990s and 2000s have aged and lost their dynamism. Only Vietnam has shown returns that are competitive with the broader MSCI Emerging Markets index over the past decade, with Indonesia and the Philippines having declined over both the short and long term. ASEAN markets have been held […]
The case for international value
After seventeen years of unbroken US equity dominance, US allocators face a strategic question that has not been this urgent in a generation: how much of their portfolio should sit outside the United States, and what style should it own? This paper argues that the answer is a meaningful, sustained allocation to international developed equities […]