fund manager views

BBVA issued the first ever Green Additional Tier 1 (AT1) bond on July 7, and immediately sparked a spirited debate among the TwentyFour team over how green bank capital can be.

Markets change, but human nature does not. This year's pandemic-induced swings in sentiment have created opportunities to buy best-in-class cyclical businesses in unloved industries.

Mainstream investors are still looking elsewhere

The pet care market offers moderate but stable growth prospects, helped by a constant rise in pet ownership and increase in spending per pet.

How should investors behave in the current environment? There are many studies that show high yielding shares have historically provided superior total returns compared to the broad UK market.

Firstly, equities. The companies we invest in continue to pay their dividends, even when many others are cutting or suspending theirs and/or raising equity.

The market response first, to the Covid-19 crisis, and second, to the huge stimulus packages announced to offset it, has been astonishing.

As multi-asset investors focused on income generation, we do not think going against global central banks is prudent, and until we see a meaningful turnaround in economic data, our preference for adding to risk is likely to remain for debt over equity...