The challenging economic backdrop of rising interest rates, inflationary pressures and the cost of living crisis are fuelling market volatility and uncertainty for our clients.

 

Listen to our latest thinking

This podcast is hosted by Nick Taylor, a Portfolio Manager within our Private Client and Charity team, who brings together several of our investment team based in London, including Kif Hancock, Ryan Myerberg, Priyanka Agnihotri and Bertie Thomson, to discuss some of the most notable recent market developments across asset classes, while highlighting some potential emerging opportunities, and how we are positioning client portfolios for long-term returns.

The themes and topics discussed include:

  • The outlook for global markets, rising interest rates led by the Federal Reserve combined with persistent inflation is translating to large drawdowns in both equites and fixed income. The discussion is centred on how Brown Advisory has been positioned in portfolios and how we are reacting and managing asset allocation accordingly. Kif touches on a specific area of opportunity in income-producing real assets.
  • This year, fixed income has faced its largest drawdown in a generation, requiring investors to be both nimble and defensive in order to preserve capital. Ryan provides insight into portfolio construction and the areas of opportunity that his team is seeing, particularly in regions that are appropriately pricing recession risk.
  • The initial picture for equity valuations in Europe is quite bleak with the cost of living crisis for consumers being accelerated by rising energy costs. However, Priyanka highlights the importance of stock selection against this backdrop, citing Unilever and LVMH, where she believes there remains long-term opportunity for these companies. She also shares thoughts on the Asian markets, including China.
  • Bertie talks about some of the global businesses his team are investing in today, discussing the impact of inflation as well as non-deferable and deferable demand in this environment. He shares that he is pleasantly surprised with the opportunities his team are currently finding in the markets, and how they have been able to take advantage of market volatility to add new investments in high-quality companies.
  • Kif concludes with his multi-asset view of the global investment opportunity set, highlighting that we are patient and focused on building concentrated portfolios to generate long-term returns for our clients.

As always, we welcome your thoughts, feedback and questions. 

Speakers: Priyanka Agnihotri, Kif Hancock, Ryan Myerberg, Nick Taylor, Bertie Thomson


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