05 Jun 2017
We continue to live in an uncertain political environment: we are just three months into the Trump presidency and perhaps only a little wiser now as to how this will pan out; the UK has entered the period of post triggering Article 50 with a Snap General Election; and Europe has a year of multiple elections.
Despite this, markets have continued their relatively resilient path. Graeme Johnston provides his views on how things may unfold. We then have two articles that look at two very topical investment issues:
- First, following the devaluation of sterling since June 2016, Dave Morton sets out some thoughts around the strategic role of currency hedging within equity mandates.
- Next, Chris Arcari takes a look at an area of debt investing typically referred to by its 3 letter acronym: ABS and the subset of this market known as CLOs.
In the final piece of this quarter’s publication we include a summary of our response to the Financial Conduct Authority’s (the FCA’s) interim report on its Asset Management Market Study. The FCA launched its market study in November 2015 with a view to understanding how competition is working for retail and institutional investors. In November 2016 the FCA issued its interim report. This important study will have an impact on the way asset managers, fiduciary managers and investment consultants conduct business. In this interim report the FCA sets out its initial findings and a series of proposed remedies to issues it has identified. The FCA sought responses to a series of questions around the proposed remedies, with the FCA expecting to deliver its final report setting out proposed amendments to FCA rules as early as Q2 2017.