Latest News,
Views & Blog

Latest G10 Macro Rates Blog
With Shayne Dunlap, Co-Portfolio Manager

One of the biggest side effects of $14 trn of QE/Balance sheet expansion by the Fed/BoE/ECB and BoJ since the GFC, has been asset price inflation. This has created immense wealth for the lucky people who were long assets in various forms, such as housing or equities. Invariably this has increased the wealth divide to extreme levels and a generation of asset winners who believe it was their investing genius that acquired this wealth, when largely it was just a by-product of public policy. Not only those lucky individuals, but a large proportion of the investment industry may have fallen for the same self-deception. The fact is the lowering of central bank rates on inflation targeting and QE programs, has allowed the UST 10Y (and many other key government bonds) to rally since 1981. 

Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team

Taiwan remains one of our favourite markets. It enjoys the lowest cost of capital in the emerging market universe and has a large number of companies with net cash on the balance sheet. Many of these stocks pay dividend yields in excess of 5.0% and are often majority controlled by their management. 

Latest G10 Macro Rates Blog
With Shayne Dunlap, Co-Portfolio Manager 

In the dark days of WW2, Churchill was presented with the proposal of cutting funding for the arts. His reply was, “Then what are we fighting for?” That was about the Arts, but what about education? For some decades now, we have been effectively taxing education. Is Education meant to be capitalist? Or is it meant to be about what we are as a society - striving for a constantly better future? Leaving this debate hanging, let’s look at the economic effect and ask.   

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
Unlocking value in Japanese companies 

Assets that offer asymmetry, where the upside potential is greater than the downside risks are the holy grail of investing. Sometimes these are found in unlikely places; one such opportunity lies within the Japanese stock market. In these uncertain times, let’s start with the downside protection. This comes in the simplest form possible: lots of cash on company balance sheets. Japanese companies have been hoarding cash for 30 years after the traumatic experience of the bubble bursting in the early 1990’s. In a world of high corporate debt, more than half of Japanese companies have net cash on their balance sheet. 

In the latest of our Multi-Asset Master Classes, Matthew Lamb, CEO of Pacific AM and Will Bartleet, CIO/Portfolio Manager of Pacific Multi-Asset discuss how recent moves in the market have seen bond and equity markets falling in tandem. Although the recent fall has felt sudden, Will discusses the three risks that he identified last quarter that in fact have been building over the last six months. They also discuss market opportunities and how the Multi-Asset portfolios are positioned.  

Latest G10 Macro Rates Blog
With Shayne Dunlap, Co-Portfolio Manager 

The IMF loves Macro - now!
Why now?
Well to answer the question, we first need to look where we have been. 

Macro has generally suffered since the initial rapid response by Central Banks post the demise of Lehman’s a decade ago. This is primarily because interest rate policy has been stagnant ever since, driving volatility of market rates to record lows. There were a few blips such as the Bernanke taper tantrum, Italy and Greece Euro crisis. But these were sell volatility events. This benign status quo has changed. 

Pacific Asset Management (PAM) announces investment partnership with award winning wealth advisory boutique, Strabens Hall
Read the full press release below

Pacific Asset Management, the core asset management business of the Pacific Investments Group, has been appointed to manage the central investment portfolios within Strabens Hall’s Investment Advisory Service (IAS). 

Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team

Anyone who is familiar with our investment process will know that at North of South we like to stress the importance of the cost of capital. A flexible methodology, which can accommodate the wide spectrum of sovereign macro conditions our corporates are exposed to, is critical to levelling the playing field for a dollar-based investor. 

Pacific Asset Management expands investment capabilities with the hiring of new specialist G10 rates, relative value Macro team
Read the full press release below

Pacific Asset Management (PAM), the asset management arm of Sir John Beckwith’s Pacific Investments Group, has announced that it has hired the former Aberdeen Standard Investments’ G10 macro rates team. 

Pacific Asset Management bolsters international distribution team with two senior hires
Read the full press release below

Pacific Asset Management, the asset management arm of Sir John Beckwith’s Pacific Investments Group, has announced the hiring of industry veterans David Macdonald and David Cockerton to support in the firm’s international expansion.