News on the financial markets and current affairs to help you get the most from your assets.
IMPLEMENTING ESG FACTORS INTO OUR INVESTMENT FRAMEWORK
In this week’s episode, Rohit Vaswani reviews last week – generally a fairly positive week for stock markets – and talks to Rory Maguire of Fundhouse around what ESG investing is and our approach at Omnis. The highlights of this podcast are as follows:
Overall, it was a good week for most stock markets globally. Some key items during the week included Biden’s $1.9 trillion American Rescue Plan, Chinese markets poor performance, rising Covid-19 cases across some European countries and the UK’s January exports to the EU.
US: Markets up and American Rescue Plan approved
- Stocks moved broadly higher in the US for the week, lifting major benchmarks to new records
- The S&P 500 was up 2.7% and the Russell 2000 Index (smaller companies) was up 7.4%
- Biden’s $1.9 trillion American Rescue Plan was signed into law
Asia: Japanese markets up whilst Chinese shares fall
- The Shanghai Composite Index was down 1.4% whilst Japan’s Nikkei 225 was up 3%
- Despite underperformance of Chinese shares this year, investor appetite for Chinese stocks appears undiminished
- Chinese exports were strong in January and February
Europe: Vaccinations, lockdowns and economic recovery
- EuroStoxx 50 was up 4.5%
- The European Central Bank (ECB) expects EU GDP growth of 4% in 2021
- Italy to impose new lockdown amidst rising cases, whilst vaccination rollout continues to lag other developed markets
UK Brexit & Economic Output
- The FTSE 100 was up 2.1% and the FTSE 250 was up 2.6%
- The British Pound appreciated to 1.39 USD per GBP
- Economic output shrank in January due to slow down of the services sector
- Imports & exports with EU were down as Brexit hit trade
The Week Ahead
• UK – BoE rate meeting due, and public borrowing data released
• Europe – inflation, trade balance and economic sentiment data released
• US – Fed meeting due, plus manufacturing and retail sales data released
To listen to the full podcast please click on the link below:
Issued by Omnis Investments Limited. This update reflects Omnis’ view at the time of writing and is subject to change. The document is for informational purposes only and is not investment advice.
We recommend you discuss any investment decisions with your financial adviser. Omnis is unable to provide investment advice. Every effort is made to ensure the accuracy of the information, but no assurance or warranties are given. Past performance should not be considered as a guide to future performance.
The Omnis Managed Investments ICVC and the Omnis Portfolio Investments ICVC are authorised Investment Companies with Variable Capital. The authorised corporate director of the
Omnis Managed Investments ICVC and the Omnis Portfolio Investments ICVC is Omnis Investments Limited (Registered Address: Washington House, Lydiard Fields, Swindon SN5
8UB) which is authorised and regulated by the Financial Conduct Authority
We would like to notify you of an important change to the Omnis Global Emerging Markets Equity Opportunities Fund in which you are invested.
Omnis Investments has recently decided to replace Jupiter Investments, the current manager of your Omnis Global Emerging Markets Equity Opportunities Fund, with Somerset Capital Management. The decision has been taken because Somerset is believed to have a superior investment strategy and approach, and therefore more likely to deliver better investment outcomes.
Omnis Investments will ensure the investment activities will be transferred from Jupiter to Somerset on 8th April 2021. Please note, you are not required to take any action as a result of this change.
The attached PDF gives you more information on Somerset Capital Management and why Omnis have appointed them as the Investment Manager for the fund.
Please feel free to contact me if you have any questions or concerns
Rishi Sunak has had to make some tough decisions as he balances tackling the health crisis, securing an economic recovery and looking ahead to fixing public finances.
In this year’s Budget the Chancellor has juggled contradictory demands by setting out his plan to continue supporting millions of people and businesses hit by the Covid lockdown, while also outlining a path to start fixing the economy.
In the attached document is a summary of the policies that could affect the personal finances of families and business owners throughout the UK.
To read the report in full, please click the link below:
If you do have any questions surrounding this document, please do not hesitate to contact us on 01506 848 799.
When the going gets tough, it can be difficult to hold your nerve. Yet financial markets often
enjoy their strongest days soon after they’ve suffered their weakest. That’s why it’s important
to resist the impulse to sell your investments after they’ve fallen in value because you’ll miss
out when they recover. Even seasoned investors acknowledge that it’s impossible to time the
markets over short periods. To prove the point, this chart shows how the MSCI World Index
gained 11% over 2020 but lost 25% if you’d missed the 10 best trading days.
The past year has demonstrated the benefits of investing actively. This approach allows
skilled investors to capture the opportunities and navigate the risks when the environment is
changing rapidly. We use a tried and tested process for identifying fund managers that have an
investment edge in their particular area of expertise. We then monitor and assess them over
long time periods and avoid reacting to any short-term periods of underperformance. The
result is that around two-thirds of the funds we’ve selected for portfolios have been in the top
half of performance versus their peer groups since launch and 60% delivered returns that were
in the top half over 2020.
If you would like to read the remainder of the article please click on the link below:
As always if you would like to contact us to discuss this article or any other aspect of your Financial Planning needs please contact us:
BREXIT – A topic which is on everyone’s mind at the moment and so we wanted to provide you with an update from Omnis Investments and how the current situation will impact your investments.
Please click on the link below to review the full article:
As always if you would like to discuss any element of your current investments, please do not hesitate to contact us at the usual address:https://vincentthrop.co.uk/contact-us/
Our October newsletter is available on our website to download. It is packed with articles, ideas and information to help you improve your financial well-being
Our October issue contains the following articles:
- Affects of COVID19 on retirement plans
- The importance of Life Cover for carers
- Spreading the risk
In order to read the articles in full, please click the link below:
If you would like to speak to us surrounding any of the content or any other area of your Financial Planning needs, please do not hesitate to contact us using our contact page below
With less than a month to go until the ballot opens, investor attention is increasingly focused on the US presidential election.
With two very different characters running for the White House, and with US politics deeply divided along political lines, interest in the outcome is understandable. However, we suspect that – for the most part – voting on 3rd November will have much greater significance politically and socially than it will from an investment perspective.
While there is much to differentiate the policies of Republican Donald Trump and Joe Biden, his Democratic challenger, there are
also a number of similarities. From a cold-hearted investor’s perspective, one particularly important common agenda is the intention of both candidates to unleash additional government spending to support the US economy. True, the scale and shape of this support differs – Trump’s plans emphasise business-friendly tax cuts while Biden’s focus on social security – but the objectives are the same: to cement and accelerate the economy’s recovery from its Covid-induced recession.
Undoubtedly, of course, there is devil in the detail. Four more years under President Trump, with his low tax agenda and antiregulatory instincts, would likely be welcomed by Wall Street. Furthermore, though his first term has been marked by unpredictability and opportunism, a second term for Trump nonetheless represents continuity, a condition investors tend to
prefer over change. On the other hand, while the scale of Biden’s proposed economic stimulus should be welcomed by stock market investors, the prospect of tighter regulatory standards and higher corporate taxes may mean a Democratic victory is initially met with a degree of wariness.
Beneath the headlines, the election outcome may have a material impact on specific sectors of the economy. As ever, healthcare
is set to be a key battleground. While Trump wishes to dismantle the Affordable Care Act – a cornerstone of Barack Obama’s legacy – Biden supports its expansion. The fortunes of healthcare providers, insurers and drug manufacturers are heavily dependent on which approach wins out. The same might also be said of industrial sectors, particularly car manufacturers.
To read the full update please click here:
If this does raise any questions, please do not hesitate to contact us: https://vincentthrop.co.uk/contact-us/
It has recently been reported by HM Treasury that the Autumn Budget scheduled for November this year has been cancelled due to the prolonged restrictions caused by the coronavirus pandemic.
This means that it is highly likely that any tax changes that might have been introduced to ease the financial burden of the coronavirus support packages will now be delayed until a potential March 2021 Budget.
This means the current personal tax allowances* and reliefs are likely to remain unchanged until next year (at the earliest). Please get in touch to take advantage of this.
Further information on the current allowances can be viewed in the documents below. There are two versions one of which is specifically for Scottish clients.
If you would like to discuss any aspect of the cancellation of the Autumn Budget with our financial adviser please get in touch:
Brexit – The Outlook for UK Investors
- Brinksmanship certainly appears to be part of Boris Johnson and Dominic Cummings’ negotiating strategy. Just eight months after
signing the terms of the UK’s withdrawal from the EU, this week saw the prime minister risk breaching international law to renege
on that agreement. Though the true motive for this latest twist in the Brexit saga is debatable, one line of thought is that the UK
government is aiming to increase the stakes to force some last minute concessions from the EU.
Indeed, a similar strategy was deployed in October, resulting in some small compromises from the EU and enabling Johnson to
claim a victory and sign the withdrawal treaty. This week’s events could be part of an attempt to repeat the trick. If so, success
would likely be a continuation of trade arrangements that look broadly similar to current arrrangements.
However, the UK government’s overhaul of an agreement it signed only eight months ago has not been well-received in Europe. It
is possible that it could cause negotiations – which were already strained – to break down completely. This would point to a
“hard” Brexit, with existing trading arrangements between the UK and Europe effectively abandoned. As trade with Europe
accounts for c.12% of the UK’s annual economic output, this would undoubtedly be a significant shock to the system.
While there can be little certainty over how the negotiations will end, it appears to us that recent events have increased the
chances of a hard Brexit. Indeed, this view seems to have shaped moves in currency markets. The sterling-euro exchange rate has
been a reliable barometer of expectations throughout this saga and, at the end of last week, the pound bought as few euros as it
has done at any time since the 2016 referendum.
To read the remainder of the document please click on the link below: