2023-11-23 17:35:29
FundCalibre Elite-Rated Managers Share Thanksgiving Thanks
Today, Thanksgiving Day is observed by Americans both at home and abroad as a cherished holiday, symbolizing much more than its historical roots. It stands for a heartwarming tradition that brings families and friends together in gratitude over a sumptuous feast. To our American readers, we extend our heartiest Thanksgiving wishes!
Imagine a scene where loved ones gather around a festive table, eagerly anticipating a bountiful meal. Yet, before the customary passing of delicious gravy, a beloved tradition unfolds as each person articulates three things for which they are deeply grateful. This ritual delivers an incomparable glow of joy, unmatched by any tangible present that might sit beneath a Christmas tree.
In the spirit of the holiday's central question, "What are you grateful for this year?" we've spoken with seven esteemed managers from FundCalibre who are rated elite, to discover the aspects of their portfolios for which they're raising a toast this Thanksgiving.
Slack was down, with issues loading pages and sending messagesThankful for: "Terminal Rates"
Chris Bowie from TwentyFour Corporate Bond expresses gratitude for what seems to be the arrival at "terminal rates" in both the US and UK. "This signifies that, although bond market volatility may continue as we face potential recession threats globally, the catastrophic losses in fixed income due to rate hikes seem to be behind us," he expounds.
Chris asserts that the current yields are sufficiently high to defend client assets, even if interest rates edge upwards or if credit spreads widen a bit on account of recession concerns. "With a reasonable investment horizon beyond a year, the prospects for investment grade credit are now particularly robust—reflecting my predominant investment choice," he adds.
Thankful for: Dodging the Direst Predictions
Steam Trap Market to hit USD 6.2 Bn by 2032, Says GlobalVincent McEntegart from Aegon Diversified Monthly Income feels grateful that the bleakest economic prognostications for 2023 have been sidestepped. "Despite many early forecasts of recession, the low unemployment and better than anticipated wage growth signal economic resilience, albeit with modest growth across various regions including the UK," he observes.
He cautions that the more substantial influence of elevated borrowing costs may simply postpone an impending recession rather than avert it altogether. Vincent concludes, "Should the economy endure another year with only a muddle through, we'll consider that a victory and remain hopeful for an unexpected economic upswing."
Thankful for: Investment Trust Flexibility
Martin Connaghan, alongside Charles Luke, both hailing from different parts of the Murray International Trust, celebrate the adaptability offered by the investment trust structure. Martin elucidates, "One distinct feature of investment trusts is the ability to utilize debt to potentially generate returns for shareholders, provided it meets the criteria for sensible use."
Rail passengers set for disruption as engineering work between Chesterfield and Sheffield leads to delays and diversions – with no trains to some Derbyshire stationsMartin reflects on the historically fortuitous conditions for incurring debt since global equity returns sorely eclipsed the average interest rates. However, with the recent expiration of £60m in debt for the Murray International Trust, the renewed borrowing costs raised doubts about the profitability for shareholders, leading to a strategic debt repayment and a reduction in gearing.
Charles extends his appreciation towards the investment trust's revenue reserves, linking it to the Murray Income Trust's unprecedented 50 years of continued dividend growth. "The weak sterling has certainly played its part for a fund paying dividends in sterling while earning mostly from overseas," he cites. Charles also acknowledges the integral role of revenue reserves, which laid the groundwork for consistent dividend payouts across half a century.
Thankful for: Growth Redistributing Sectors
From T. Rowe Price Global Focused Growth Equity, David Eiswert is thankful for the evolving landscape where more sectors are emerging as key growth contributors. "Lately, we've increased our positions within the energy sector as we seek out institutions with strong pricing control and upward-trending fundamentals," he comments.
Medicated Feed Market Size, Key Players Analysis and Forecast To 2029 – Evonik, DowDuPont, DSM, AdisseoDavid also emphasizes the pivotal importance of companies that can supply fossil fuels thoughtfully and responsibly during the energy transition—especially under the pressure of elevated inflation.
Thankful for: Two Decades at the Forefront
James Thomson, taking charge at Rathbone Global Opportunities, expresses gratitude for his 20-year tenure, which has been marked by an impressive 944% return for investors. He humorously quips that his performance could have been bolstered earlier had he considered his mother's insight into Novo Nordisk's Ozempic, a diabetes and weight loss drug. "The wisdom of always listening to one's mother stands true," he jests.
Reflecting on previous market upheavals in 2008, 2016, and 2022, James takes an optimistic stance: "In due time, these periods will likely be regarded as some of the greatest opportunities to acquire outstanding growth stocks worldwide."
SkyWater Technology to Participate in Jefferies Semiconductor, IT Hardware & Communications Technology SummitThankful for: A Historic Investment Prospect
Chris Miles of Capital Group is thankful for what appears to be a defining moment for investors as interest rate hikes begin to plateau. "With investors gravitating towards cash due to its appealing current yield—a sentiment not observed in over two decades—it's vital we prepare for a shift to diversify across attractive global bond and equity markets," he asserts.
Chris is confident that fixed income is once again living up to its reputation by offering robust income opportunities. He further explains that as borrowing costs stabilize and eventually decrease, this will likely invigorate the economy and bolster corporate profits: "Historically, equity investors have reaped benefits in such situations. We're optimistic about the prospect for long-term investors to spot favorable opportunities."
We've now shared an array of gratitude moments expressed by these fund managers. As we wrap up this note, here's wishing everyone a joyful Thanksgiving, no matter where you are celebrating!
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