FundCalibre - Investing on the go

Markets have delivered another strong quarter, but beneath the headline returns there are important shifts taking place. The next instalment of our quarterly market update, with Darius McDermott and Juliet Schooling Latter, explores the revival in UK smaller companies and commodities, stubborn inflation and the prospect of higher interest rates. We examine the extraordinary sums being spent on AI, rising debt among technology companies and whether investors are less diversified than they realise. The conversation also turns to bonds, where shorter-duration opportunities are looking increasingly attractive, before assessing UK equity valuations and the areas offering potential away from AI. Finally, we reveal which markets and sectors could provide opportunities as we head towards 2027.

What’s covered in this episode: 

• UK smaller companies finally deliver
• Commodities take the lead
• Higher rates for longer
• Inflation refuses to behave
• The enormous AI spending boom
• AI hyperscalers turn to debt
• Who actually profits from AI?
• Hidden portfolio concentration
• Finding genuine diversification
• Opportunities beyond the AI trade
• Bonds back on the radar
• The case for short-duration bonds
• Are UK equities still cheap?
• India’s difficult two years
• The outlook for commodities
• Opportunities heading into 2027

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

AI spending continues to reshape markets, but after several years of extraordinary growth, are the most obvious opportunities becoming harder to find? We discuss signs of bubble-like behaviour, with Mikhail Zverec and Graeme Bencke, co-managers of the WS Amati Global Innovation fund, who elaborate on the slowing growth in AI capital expenditure and why the next phase could favour less obvious beneficiaries. The interview explores physical AI, robotics, industrial automation and the specialist companies providing the infrastructure, sensors and software behind them. We also examine why parts of the software market may have been written off too quickly, before moving beyond AI to uncover innovation across drug discovery, laboratory automation, radiopharmaceuticals, defence, drones, cyber and space.

What’s covered in this episode: 

• Are we in an AI bubble?
• Where we are in the AI investment cycle
• Why AI CapEx growth could slow
• Moving beyond the obvious AI winners
• The rise of physical AI
• Robots, cobots and warehouse automation
• The infrastructure behind industrial AI
• Sensors, machine vision and connectivity
• Why software may have been oversold
• The value of deep domain expertise
• AI’s impact on drug discovery
• Robotics inside the laboratory
• The potential of radiopharmaceuticals
• Defence, drones, cyber and space
• Finding innovation beyond AI

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

UK small-caps have endured a difficult decade, but attractive valuations, stronger balance sheets and improving earnings trends are creating a compelling backdrop. Our interview with Katen Patel, co-manager of the JPMorgan UK Small Cap Growth and Income Trust, explores what could finally trigger a re-rating, why M&A activity is accelerating, and how share buybacks have become increasingly attractive for cash-rich companies. He also covers opportunities in UK mid-caps, the benefits of an investment trust structure, overlooked companies at the smaller end of the market and the importance of international revenues. Finishing with how the portfolio balances capital growth with income.

What’s covered in this episode:

• A decade of UK small-cap challenges
• What could trigger a re-rating
• Valuation discounts versus the US
• Four Imprint’s international growth
• Small-cap dividend yields
• Rising M&A activity
• Private equity interest
• The shortage of new IPOs
• Why share buybacks are rising
• UK mid-cap opportunities
• Investing below £300 million
• Finding under-researched companies
• International revenues in UK small-caps
• Capital growth versus income
• Record free cashflow yields

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

Capital preservation can be just as important as income when investing in bonds. Our interview with Jerry Wharton, manager of IFSL Church House Investment Grade Fixed Interest, examines how a defensive investment-grade bond strategy seeks to preserve capital while providing dependable income for clients. The discussion covers the importance of credit quality, short duration and avoiding the temptation to chase yield through lower-quality or excessively long-dated bonds. It also explores volatility in the gilt market, attractive new sterling issuance and growing concerns around debt issued by major US technology companies. Finally, the conversation considers the difficult outlook for UK inflation and interest rates, before explaining why current sterling investment-grade bonds may offer an appealing combination of income and capital upside for cautious investors today.

What’s covered in this episode

• Capital preservation in bond portfolios
• Income without chasing yield
• Why credit quality matters
• The fund’s AAA allocation
• Managing interest-rate sensitivity
• Lessons from the 2022 bond sell-off
• Volatility in long-dated gilts
• Government borrowing concerns
• Attractive sterling bond issuance
• Heathrow’s recent bond
• Hyperscaler debt risks
• The danger of century bonds
• AI spending and corporate liabilities
• UK inflation pressures
• The outlook for interest rates
• Income and redemption upside

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

European equities have long appealed to income investors, but the opportunity is becoming broader than dividends alone. Stuart Brown, co-manager of the BlackRock Continental European Income fund, joins us to discuss improving earnings and dividend growth across industrials, banks and utilities, alongside the structural themes supporting them, including electrification, energy security and supply-chain investment. The discussion also examines regional portfolio positioning, the resilience of European companies amid geopolitical disruption, and selective opportunities in defence. Finally, it considers why share buybacks, improving business fundamentals and more shareholder-friendly capital allocation could strengthen Europe’s total return potential.

What’s covered in this episode: 

• Europe’s evolving income opportunity
• Sustainable dividend growth
• Opportunities within industrials
• Electrification and energy security
• Regional portfolio positioning
• France beyond domestic politics
• Southern European banks
• Falling rates and bank earnings
• AI adoption in financial services
• Infrastructure-like utilities
• Defence spending and valuations
• Managing geopolitical risk
• Supply-chain investment
• The growth of share buybacks
• Europe’s changing total return story

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

Artificial intelligence has fuelled exceptional market performance, but it has also created opportunities in overlooked areas of the global equity market. In this episode, Sam Witherow, co-manager of the JPM Global Equity Income fund, discusses why high-quality companies have lagged despite strong fundamentals, how dividend investing can still capture technology-led growth and where the most attractive opportunities lie outside the AI winners. The interview covers US equities, semiconductor leaders, financials, healthcare and medtech, before looking at market valuations, geopolitical risks and the outlook for global equities.

What’s covered in this episode: 

• AI and market euphoria
• Quality versus momentum
• Dividend growth investing
• US market outlook
• Technology opportunities
• TSMC and AI infrastructure
• The AI "layer cake"
• Financial sector opportunities
• Banks versus exchanges
• Healthcare and medtech
• Market valuations
• Broadening earnings growth
• Building resilient portfolios
• Global equity outlook

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

Geopolitical tensions, inflation fears and shifting interest rate expectations have created a challenging backdrop for bond investors. Dickie Hodges, manager of the Nomura Global Dynamic Bond fund, discusses why these periods can also create attractive opportunities, how rising yields have transformed the outlook for fixed income, and why today’s market looks very different from a decade ago. The conversation covers credit spreads, emerging market debt, financial bonds and the importance of maintaining liquidity. We also explore how hedging strategies are used to reduce portfolio risk without sacrificing return potential, before finishing with an outlook for the remainder of 2026 and where the most compelling opportunities currently lie.

What’s covered in this episode: 

• Geopolitics and bond markets
• Why higher yields matter again
• Oil prices and inflation outlook
• Interest rate expectations
• Credit spreads explained
• Investment grade versus high yield
• Financial bonds
• Emerging market debt opportunities
• Why South Africa stands out
• Liquidity in fixed income
• Hedging explained simply
• Insurance for portfolios
• Return outlook for 2026

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

In this episode, we explore the structural changes reshaping global markets and why politics is only part of the story. The discussion examines how deglobalisation, higher interest rates and renewed focus on energy, defence and industrial policy are changing investment opportunities. Alec Cutler, manager of the Orbis Global Balanced and Global Cautious funds, looks beyond the headline AI winners to the companies enabling the technology revolution, he also shares why the energy transition could remain inflationary, and explores opportunities in emerging markets and fixed income. Finally, we examine how a valuation-driven investment approach helps build resilient portfolios capable of navigating changing market environments and shifting investor sentiment.

What’s covered in this episode: 

• Beyond the Trump headlines
• Populism and structural change
• Deglobalisation and reshoring
• The "Pyramid of Needs" for nations
• Energy security and infrastructure
• AI's overlooked enablers
• Why natural gas still matters
• Greenflation explained
• Building all-weather portfolios
• Emerging market opportunities
• Brazil vs the US
• Government bond opportunities
• Inflation-linked bonds (TIPS)
• US market complacency
• The return of value investing

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

This episode focuses on Japan’s changing market dynamics and why investor sentiment appears to be shifting after decades of stagnation. Richard Kaye, manager of the Comgest Growth Japan fund, discusses the return of domestic confidence, renewed consumer and corporate activity, and the growing role of institutional capital in supporting equities. We also explore Japan’s position within global technology and AI supply chains, highlighting its continued leadership in semiconductors, robotics, and industrial automation. Finally, we look at broader structural themes, including demographic change, labour market reform, and Japan’s integration into wider Asian growth. Together, these forces are reshaping the long-term opportunity set for investors in Japan.

What’s covered in this episode: 

• Japan’s shifting investor sentiment
• End of “lost decades” narrative
• Role of new political leadership
• Inflation, energy and macro backdrop
• Style rotation: value vs growth
• Return of growth investing in Japan
• Yen depreciation and market impact
• Japan’s role in global AI supply chains
• Semiconductor and tech leadership
• Robotics and industrial automation
• Structural demographic challenges
• Labour shortages and immigration policy
• Corporate adaptation and reform
• Rise of domestic institutional investors
• Long-term implications for global portfolios

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

In this special 400th episode, we take a broad look at global markets at the halfway point of the year. The discussion between Darius McDermott and Juliet Schooling Latter covers easing geopolitical tensions, inflation dynamics, and the continued influence of AI on equity returns. We explore the broadening of market performance beyond the US, with strength in Asia and emerging markets, alongside challenges in India and a mixed picture in the UK. The episode also examines central bank policy, M&A activity, and structural shifts shaping regional opportunities. Overall, it highlights how diversification and selectivity remain critical in navigating an increasingly complex and fast-moving investment backdrop.

What’s covered in this episode: 

• 400th episode milestone reflections
• Market volatility and geopolitical tensions
• Iran conflict and oil price impact
• Inflation drivers: demand vs supply
• Central bank policy outlook
• Broadening global equity returns
• AI trade and market concentration
• US vs Asia vs emerging markets performance
• Japan’s corporate reform and growth story
• India’s underperformance and drivers
• UK and European equity markets
• M&A activity in UK equities
• Smaller companies valuation opportunity
• Energy, commodities and sector trends
• Central bank divergence across regions

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.