On the comeback trail
Why active managers are fighting back
On the cusp
Investors are walking a tightrope, trying to keep their balance amid the competing forces of a global economic slowdown and relative economic stability.
The polarisation of the stock market is no more acute than in the UK, where political uncertainty surrounding Brexit has punished domestic cyclicals, while international earners with defensive characteristics have continued their ascent.
The UK stock market remains the most unloved in the world, but our delegates were largely sanguine. Some of them have increased exposure, while others are sitting on the side lines waiting to position more heavily into the UK.
And it paints a brighter picture for bombed out areas of the market, such as banks, retailers, energy operators and miners, many of which are in better shape than they were going into the financial crisis.
Our attendees recognised that those investing in these areas through investment trusts stand to get a performance kicker. UK equity income investment trusts, with their heavy bias towards value stocks, are a prime example.
Is this a really important moment for active management?
Panel discusses the merits of growth and value investing while investors look through today’s uncertainties.
Articles
Active management and value investing look poised for a comeback, with greater uncertainty, more volatility, and the recovery of undervalued assets – such as those in the UK – setting the stage for a rotation.
Gallery
Panellists
James Goldstone
Fund Manager – Invesco
James joined the Henley Investment Centre’s UK Equities team in August 2012 and manages two investment trusts, both in the UK All Companies sector. He took on management of Invesco Perpetual Select trust – UK Equities share portfolio from Mark Barnett in October 2016. It has net assets of £58 million and is around 40% invested in FTSE 100 stocks, with the rest divided between mid-caps, smaller companies and AIM stocks. In April 2017 he also took on the management of Keystone Investment trust from Barnett. This is a larger trust with £254 million net assets and a similar spread of companies. Prior to joining Invesco, James was co-head of pan-European sales at Banco Espirito Santo in London. James began his career in pan-European equity sales at Credit Lyonnais in 2001 and went on, via HSBC and Dresdner Kleinwort, to specialise in UK equity sales.
Paul Wharton
Chief Investment Strategist – Tacit Investment management
Educated at UCL in London, Paul joined Fidelity in the early 1980s, where he trained as a portfolio manager. In the 1990s, he established an investment business which was subsequently taken over by SocGen. Paul led and developed SocGen’s expertise in the management of personal pensions particularly with respect to income drawdown publishing their approach derived from the then emerging market in stripped Gilts. Paul had senior positions at SG Hambros and Tilney Investment Management. Prior to joining Tacit, he was Head of Portfolio Management and Chief Investment Strategist at Deutsche Bank Private Wealth Management where he served on Deutsche Bank’s Global Investment Committee.
Matt Hoggarth
Head of research – Thesis Asset Management
Matt oversees the qualitative and quantitative research into global economic conditions, equities, bonds and funds which supports the various mandates that Thesis manages for high net worth families, charities and trusts. Matt graduated in natural sciences from the University of Cambridge and has a masters in international relations from the Diplomatic Academy of Vienna. He is a CFA Charterholder, Chartered Fellow of CISI and Member of the Society of Professional Economists, and has worked at Thesis since 2005.
James Burns
Partner, Investment Management – Funds – Smith & Williamson
James co-heads Smith & Williamson’s Managed Portfolio Service as well as leading the Multi Manager team, which oversees the Smith & Williamson MM Global Investment Fund, the Defensive Growth Fund and the MM Endurance Balanced Fund. James joined the firm in 1999 and started working on the investment trust desk in 2001. He also sits on the firm’s Asset Allocation Policy group.
Guy Foster
Group Head of Research – Brewin Dolphin
Guy leads Brewin Dolphin’s Research Team ensuring that a rigorous and exhaustive investment process is employed. He also provides recommendations on tactical investment strategy to the Brewin Dolphin’s investment managers and strategic recommendations to the group’s Asset Allocation Committee. Before joining Brewin Dolphin in 2006, Guy was an Investment Director at Hill Martin (Asset Management) Limited. Guy has a Masters in Finance from London Business School. He is also a CFA charterholder, holds the CISI Diploma, and is a member of the Society of Business Economists. Guy frequently discusses financial issues with the written and televised media as well as presenting to the staff and clients of Brewin Dolphin.
Mike Hollings
Partner – Shard Capital
Mike Hollings has over 30 years’ experience in both investment banking and investment management at firms such as Morgan Stanley, SG and Rathbones, with a specialisation in convertible bonds and derivatives. He was chief investment officer at Ansbacher Private Bank between 2005 and 2009 and has focused on managing multi-asset, absolute return portfolios over the last 11 years. He read Law at Exeter University and subsequently served a short service commission in the Blues and Royals.
