Investment Perspectives from RSMR

As we move through another wave of technological transformation, financial advisers are increasingly being asked how to position portfolios for the rise of AI. The headlines are dominated by ground breaking developments and showstopping returns but beneath the surface lies a much more complex and nuanced investment picture.

• What influence do AI-related stocks have on the market?
• What’s the average investor’s grasp on AI?
• What paths are open to the investor? 
• How can concentration be managed in portfolios?
• What about the broader economic implications of AI?

If the last few months have shown us anything, it’s that geopolitics are playing a bigger role in financial markets than ever before. Whether it’s escalating tensions in the Middle East or the long-running fallout from the war in Ukraine, global events are having a real and immediate impact on markets - and by extension, on investment portfolios.

• What role do geopolitics play in markets? 
• How economically sensitive is the Strait of Hormuz?
• What's happening in energy markets?
• What could tension in the Middle East mean for future inflation?
• What does this mean for portfolios?

Humans have been fascinated by gold for over 6,000 years with the first known gold artefacts dating back to around 4,000 BC in Eastern Europe. It has been used as currency, art, jewellery, and a symbol of power across every major civilisation. Gold doesn't tarnish, rust, or corrode and is one of the most chemically stable elements on Earth, which is why it's been treasured for millennia and used to store value through wars, recessions, and currency collapses.

• Why are investors once again turning to gold? 
• Why is gold seen as a haven during uncertainty?
• How does gold perform when it comes to inflation and currency risk?
• How does gold fit into a modern investment portfolio?
• Why is such a traditional asset trending on social media? 
• What’s the takeaway for investors today?

The US is the largest consumer market in the world, making it a critical target for global exporters. The Trump administration's recent decision to raise trade tariffs stems from a combination of economic, political, and national security objectives. These tariffs are part of a broader strategy aimed at reshaping the US' trade relationships and bolstering domestic industries but are not without high levels of controversy.

• What is the Trump administration looking to achieve and is it achievable? 
• What’s the state of play globally? 
• What’s the story in Europe? 
• What’s the outlook for investors and where are the opportunities?

With changes in pension regulations, tax treatment, and investment strategies shaping how advisers support clients, retirement planning has undergone significant transformation over the years. 

Historically, HMRC emphasised that pensions were solely for providing income in retirement, but legislative changes have led to a shift in approach. 

With further changes in the pipeline from April 2027, advisers are having to adapt to the evolving landscape as it unfolds.

• What’s happening in pension planning? 
• What are the four broad retirement investment approaches to consider?
• How can we navigate the future of retirement planning?

The Bank of England’s Monetary Policy Committee voted unanimously in February to cut the Base Rate by 0.25% to 4.5%, with two members advocating for a larger 0.5% cut. Despite inflation remaining a threat, this shift to a more dovish stance highlights the concerns they have over the health of the UK economy. With all this doom and gloom, why would anyone invest in UK plc? There may be just one word for it – infrastructure! 

• What's the infrastructure output forecast and what does this mean for investors?
• Will the government stick to its plans when it comes to cleaner energy in the UK?
• Where do we stand when it comes to the AI revolution?
• Will the national grid infrastructure be able to cope with demand?
• How are markets reacting?

In this month’s Investment Perspectives podcast, we’ll explore the key drivers shaping portfolio performance in 2024 and share insights into what we think the future may hold across the ever-evolving investment landscape.

• What's happening from an equity standpoint?
• Will the Magnificent 7 continue to steal the limelight? 
• What effect will Trump's policies have on the US investment landscape?
• What are expectations in the UK, Europe, and Emerging Markets?
• Where are the pockets of potential for 2025?

The FCA recently implemented the Sustainability Disclosure Requirements (SDR) – a package of measures designed to improve transparency in sustainable investing and crack down on greenwashing within the industry. 

• What are the new rules and what does this mean for investors and advisers?
• Why has this framework been brought in? 
• Are these changes advantageous for the adviser? 
• Why is qualitative fund research that underpins existing ratings so important?
• Does SDR reinvigorate a level of interest in responsible investment?

Since we launched in 2004 our core aim has been to help advice businesses to be successful. With the introduction of our new Passive Plus range , we're eager to give financial advisers a comprehensive overview of our Managed Portfolio Service. Together with Stewart Smith, Head of Managed Portfolio Services at RSMR, we're using this podcast as a platform to shed light on our three MPS ranges, highlighting our latest offering.  

Many of us have felt the pressure of prevailing high interest rates over the last few years but it looks like there is light at the end of the tunnel so it’s time to consider whether the message has changed from central banks and what the expectations and implications of the new lower rate environment will be.

• The trajectory is that interest rates will continue to fall but at what pace?
• How can we protect our investments in the current economic environment and where are the openings?
• When it comes to expenditure on AI, have the baked in expectations of growth in some of the mega caps gone too far and what will the actual return on investment be?