David Ennett, co-manager of the Artemis Global High Yield Bond fund explains why the sector has now matured giving investors greater scope to invest in higher quality bonds in this portion of the market. He emphasises the importance of actively choosing which segments of the market to invest in and explains why high yield bonds are appealing in an inflationary environment.

The interview also delves into the fund's investment approach, including its preference for BB and B-rated securities, as well as its focus on developed markets like the UK and the US. David also shares the rationale behind a few unique holdings, such as Crocs, and why they make a better investment than fashion choice. Regarding the market outlook, David believes the second half of the year may continue to be influenced by inflation and uncertainty, but there's growing acceptance that the downside may not be as pronounced as feared. David also discusses his 3-5 year outlook for the high yield bond market.

What’s covered in this episode: 

• What type of companies make up the high yield market
• Does high yield become risker in an inflationary environment
• Where does the Artemis Global High Yield Bond fund invest
• Why the UK bond market is so appealing
• The investment case for Crocs
• Uncovering hidden gems in the market
• How do high yield bond funds fit in a wider portfolio
• The correlation between equities and high yield bonds
• Moving on from inflation denial and what that means for the second half of 2023
• The medium-term outlook for high yield bonds

More about the fund:
The Artemis Global High Yield Bond fund is a high conviction fixed income portfolio investing in 60-100 high yield issuers across the globe. Managers David Ennett and Jack Holmes, aim to make the money invested by shareholders grow in two ways: by earning regular income and by increasing the overall value of the investments. They do this by looking for opportunities in parts of the bond market that other investors don't pay as much attention to.

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.

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.

Praveen Kumar, manager of the Baillie Gifford Shin Nippon investment trust, tells us about the welcome return and impact of ‘mild inflation’ to a country that has had more than two decades of deflation. He details the subsequent shift in mindset for domestic investors and how this is boosting the domestic equity markets. Praveen then gives us his views on the growth prospects for Japan - boosted by advances in the application of AI - and the impact of this on the fund’s own holdings.

What’s covered in this episode:

• The impact of inflation on Japanese spenders - and savers
• The surprising behaviour that Japan and Germany have in common
• How the domestic investment market is benefitting from the inflationary environment
• What the lack of correlation between economic growth and stock market returns means for investors
• Geopolitical tensions and the positive implications for the Japanese economy
• Why regulation and global comparison are attracting foreign investment into Japan
• How Japan’s current demographics are influencing AI take-up
• How the AI industry in Japan is different to elsewhere
• AI in the cosmetics and construction sector

More about the trust:
The Baillie Gifford Shin Nippon trust aims to provide long-term capital growth by investing in smaller companies listed on the Japanese stock market. Shin Nippon means ‘new Japan’ and this trust focuses on emerging or disrupted sectors, where the manager sees innovative growth opportunities. The team is prepared to bide its time while these companies reach their full potential and, while the trust can be highly volatile, patient investors have been richly rewarded.

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.

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.

Alec Cutler, manager of the newly award Elite Rated Orbis Global Balanced fund, joins us today to provide a brief introduction to the fund's philosophy, the unique charging structure of the fund and its approach to targeting long-term returns, before turning to macro events. Self-proclaimed contrarian investor, Alec, highlights the importance of patience and being comfortable with being alone and potentially being wrong - or early - in investment decisions. 

We shift to the ever-present topic of inflation, with Alec expressing skepticism about the Federal Reserve's ability to control it and highlighting several current — and historical — inflationary pressures. Regarding the outlook for a recession, Alec explains that, as a contrarian investor, he looks for opportunities in areas that have been battered in the market, telling us more about where he’s currently finding opportunities. 

In the second half of the interview, the conversation focuses on the bond market, gold, geopolitical concerns, and the unique charging structure of the fund. Alec emphasises the attractiveness of gold and its role in the portfolio, arguing that gold is the original cryptocurrency because it was "issued by God." We shift to de-globalisation and Alec elaborates on why he believes we’re seeing a “resumption of the Cold War” with a growing divide between the East and the West — and how ESG issues are playing a role.

What’s covered in this episode: 

• Introduction to the Orbis Global Balanced fund and philosophy
• The asset allocation and philosophy of the fund
• Four past contrarian examples in technology, including Microsoft and Apple
• Why the Fed hasn’t got anything right
• Why 2% inflation doesn’t make any sense
• How historical data influences today’s inflation
• How defense spending, technology and anchoring all influence inflation 
• What is ‘Greenflation’ and how it’s impacting the economy
• The appeal of the US, Japan, and Korea
• Why the fund is underweight the US 
• The attractive nature of TIPS — Treasury Inflation Protected Securities
• Why gold is the crypto issued by God
• The importance of managing currency risk 
• The reintroduction of bifurcation and the “Cold War”
• The impact of ESG on the East/West divide
• The unique charging structure of the fund 

More about the fund:
Orbis Global Balanced scours the world for the best investment opportunities across a number of asset classes including equities, fixed income and commodities. Manager Alec Cutler believes one of the key advantages of the portfolio is the ability to focus on best ideas and making them “fight for capital”, with every holding needing to be an active contributor to the fund.

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.

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.

Stephanie Bothwell, co-manager of the BlackRock European Absolute Alpha fund, joins us today to discuss the current economic and market conditions in Europe. While macro narratives such as inflation and interest rates have influenced the market, there is now more dispersion between stocks and within sectors, creating a supportive environment for bottom-up stock selection. Stephanie highlights two long positions in the fund: Novo Nordisk, driven by innovation in diabetes and obesity therapies, and Royal Unibrew, a Danish drinks company which announced a deal just this week, providing a platform for organic growth.

What’s covered in this episode: 

• The dispersion between European markets
• Characteristics of a good long position in the portfolio
• The investment case for Novo Nordisk: highlighting diabetes and obesity
• The investment case for Royal Unibrew
• Characteristics of the short positions in the fund
• What sectors are currently providing a good opportunity for shorting
• How the fund factors in higher interest rates and inflation in stock selection
• Why investors should consider the fund in their portfolio

More about the fund: 

The BlackRock European Absolute Alpha fund has a fully flexible investment approach aiming to generate positive returns irrespective of market conditions. The fund's primary objectives are capital preservation and maintaining low levels of volatility. Instead of relying on complex derivatives, the fund employs a combination of long and short equity positions.

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.

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.

Darius McDermott and Juliet Schooling Latter offer their opinions on the artificial intelligence craze - whether it’s here to stay and how companies can embrace AI going forward. On the subject of inflation, they acknowledge its persistence and the challenges it presents, and consider whether cash could be an attractive asset class today. Darius and Juliet also give their views on how investors should react to a change of management on a fund and why investors shouldn’t try to “time the market” but rather consider “buying the dips” for long term investments. 

What’s covered in this episode: 

• Is artificial intelligence a fad or is it here to stay?
• Why AI will cause disruption and potentially benefit economic growth
• Should you invest in cash or corporate bonds?
• The appeal of short duration bonds
• Buying experiences not goods
• How everyone got inflation wrong
• What should you do when a fund manager retires? 
• What makes technology the stand-out winner of the first half of 2023
• Europe and Japan leading the pack
• Why government bonds have performed so poorly in 2023
• Geopolitical concerns driving underperformance in China
• Is the UK going into a recession?
• The outlook for the second half of 2023

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.

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.

The advantage of investing in a pooled fund of Real Estate Investment Trusts (REITs) is that investors don't need extensive knowledge about the underlying assets. Active managers such as Rogier Quirijns, co-manager of the Cohen & Steers European Real Estate Securities fund, handle the selection of properties and the broadening sectors within real estate, such as office spaces, retail, data centres, and self-storage, on your behalf. 

Rogier discusses the negative impact of inflation overshooting and the subsequent increase in interest rates, which primarily affected the listed real estate market. However, he also mentions that inflation can be a benefit by increasing rental income. He then turns to the defensive nature of the sector when discussing recession. We finish with the opportunities for investing in undervalued assets, such as German residential properties.

What’s covered in this episode: 

• What is a REIT? 
• What are the advantages of REITs? 
• How the sector has broadened out into new sub-sectors
• What caused the challenging period of real estate assets in 2022
• How inflation can benefit real estate
• The defensive characteristics of real estate
• Potential catalysts for the asset class
• The strong pricing power in self-storage 
• Opportunities in German residential properties
• The impact of higher interest rates on mortgages

More about this fund:
This fund employs a proven and reliable approach that enables its well-resourced team to navigate the market, aiming to provide consistent returns that surpass the overall market performance. The European real estate market is influenced by a multitude of factors, but the expertise and resources of Rogier and the team empower them to analyse all available information and construct a risk-conscious portfolio.

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.

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.

City of London Investment Trust manager Job Curtis discusses the current state of the UK economy and provides a more optimistic perspective. While he believes inflation will eventually decline, it may take time to return to previous levels. Job discusses the global exposure of his holdings and the negative perception of the UK market on the global stage. He also reveals what he says is the “hidden secret of stock markets”. The interview finishes with Job highlighting the reliability of the trust to grow its dividends and how companies in the portfolio have managed rising inflation and interest rates.

What’s covered in this episode: 

• Pessimism surrounding the UK economy
• How wage, food and energy prices influence inflation 
• Why the UK stock market is not the same as the UK economy
• How UK equities offer investors potential growth 
• The international exposure of the trust
• Why the UK market continues to trade on a discount
• Examples of M&A activity in the portfolio
• The importance of income in a portfolio, no matter your age
• How perceived inflation impacts markets
• Why the manager takes a cautious approach
• How the trust is currently positioned
• The sectors with the largest allocation today

More about this fund:
The City of London Investment Trust focuses on generating both income and capital growth through its investments primarily in larger UK companies that have international reach. For 56 consecutive years, it has consistently raised its dividend payment. The trust has a conservative approach, which has resulted in consistent and reliable returns over an extended period.

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.

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.

Anjli Shah, manager of the abrdn SICAV I Global Mid-Cap Equity fund, demonstrates the effectiveness of the fund’s ability to run small-cap winners and buy future large-caps early. Anjli acknowledges the challenges faced in 2022, due to a combination of style rotation in global markets and mid-cap growth being affected by higher inflation and interest rate expectations.

This episode also focuses on three holdings: Cadence, a US company specialising in computational software for semiconductor design, Moncler, an Italian luxury brand known for its outerwear, and small-cap graduate, Insulet, a US manufacturer of tubeless insulin pumps. Anjli explains the growth drivers and positive attributes of each company. She also emphasises the importance of meeting management teams and assessing their strategies, vision, and alignment of interests.

What’s covered in this episode: 

• The success of the fund following the third anniversary since inception
• How global style rotation impacted global mid-caps
• The potential for mid-caps to bounce back quickly
• Why semiconductors are important to the AI story
• The momentum behind Italian luxury brand Moncler
• The importance of meeting management before investing
• How the ‘Matrix’ is used for portfolio idea generation
• The potential for Asian and emerging markets to perform well
• Small-cap ‘graduate’ Insulet, a manufacturer of tubeless insulin pumps

More about this fund:
The abrdn SICAV I Global Mid-Cap Equity fund uses the resources of abrdn's thriving small and mid-cap desk, focusing on companies that fall within the "next 15%" range in terms of market capitalisation beyond smaller firms. The fund's approach centres around abrdn's robust screening tool called ‘The Matrix' and consists of approximately 40-80 companies.

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.

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.

Ian Mortimer, co-manager of the Guinness Global Innovators fund, shares how the fund identifies and profits from innovative and disruptive companies, emphasising the importance of sustainable growth and the need to avoid getting caught up in the hype. We also cover the benefits and risks associated with Artificial Intelligence, the Metaverse, and the payments and FinTech sector. Ian provides examples of companies within these various themes and discusses the long-term outlook for investing in innovative companies, highlighting the challenges faced in the past 18 months. 

What’s covered in this episode: 

• How investors can make money from innovative companies
• How markets reacted to ChatGPT
• The performance of artificial intelligence stocks versus the benchmark
• The potential benefits of artificial intelligence 
• Why investors shouldn’t necessarily buy into the whole AI story
• The recent profitability of Meta 
• Why the Metaverse looks attractive
• How demographics have influenced the FinTech market
• How AI could influence financial data
• Innovation doesn’t necessarily mean the smallest companies
• How interest rates impacted innovative companies
• The positive outlook for quality growth 

More about the fund: 
The Guinness Global Innovators fund focuses on innovative and disruptive companies and has identified nine key innovation themes. These themes are advanced healthcare; artificial intelligence and big data; clean energy and sustainability; cloud computing; internet, media and entertainment; mobile technology and the internet of things; next generation consumer; payments and FinTech; robotics and automation. The fund will naturally have a heavy bias in favour of the growth style of 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.

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.

James Mee, co-head of multi-asset strategies and manager of the Waverton Multi-Asset Income fund, provides a comprehensive overview of the wide range of opportunities available to multi-asset investors. James delves into Waverton's unique approach to risk management, emphasising that it goes beyond just volatility and encompasses factors like inflation and potential permanent capital loss. He explores the effective strategies employed during uncertain periods, including the use of hedging within the fund to mitigate these risks.

The latter part of the episode focuses on the critical topic of inflation and its long-term implications. James analyses various factors such as China's working population, the influence of digitalisation, and the impact of artificial intelligence. To illustrate these concepts, James finishes by sharing two examples from the fund's portfolio: the Chicago Mercantile Exchange and PRS REIT.

What’s covered in this episode: 

• How the Waverton Multi-Asset team defines risk
• How the manager manages risk in the fund
• Why investing directly in equities and not funds gives more control over risk
• How the manager protects capital during periods of market volatility
• The use of hedging in the fund
• The manger’s view on inflation in the UK
• The inflationary impact of de-globalisation 
• How the decreasing working population influences inflation
• The disinflationary force of digitalisation
• Will artificial intelligence cause a disinflationary impact in years to come?
• Chicago Mercantile Exchange: what it is and why it looks attractive today
• Why the fund is adding to property
• The fund’s increased exposure to investment grade fixed income
• How to invest for the long-term during market uncertainty

More about the fund: 

The Waverton Multi-Asset Income fund leverages the broader capabilities of Waverton Investment Management to construct a diversified portfolio encompassing direct equities, fixed income, and alternative strategies. The team prioritises risk management as the core of its investment approach, with a focus on safeguarding capital during periods of market weakness.

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.

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.