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Multi-Asset Blog - UK Paycuts

18 August 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
UK Paycuts – Thanks for your hard work, here's a pay cut

Imagine walking into your manager’s office at the end of a good year and your boss smiles and awards you a pay cut. This is exactly what has happened to workers in the UK this year. Whilst wages have risen 2.1%, inflation is running at 3.6% so in real terms, the average worker is 1.5% poorer than they were last year. Prior to 2008, workers’ pay exceeded inflation by 2.5%, so every year people ended the year better off than they started it. Since then real wage growth has been negative, so on average, after inflation, UK workers are earning less than they were nearly 10 years ago. 
 

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Multi-Asset Blog - The 3-6-3 Rule

11 July 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
The 3-6-3 Rule

Bank managers used to operate on the 3-6-3 rule: borrow at 3%, lend at 6% and be on the golf course by 3pm. Ultra-low interest rates and QE has pushed down the spread between the cost of borrowing and lending which has had a detrimental effect on their net interest margins. Rising bond yields relieve this pressure, and this combined with far fewer fines, an easing of the regulatory environment and cost cutting means that earnings are growing again. 

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Multi-Asset Blog - Mayday UK Election

09 July 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
Mayday

Politics has not lost its power to bamboozle pollsters and surprise markets. What was meant to be an opportunity to secure a strong conservative majority, now looks like a seriously rash move. Theresa May’s conservative government has been forced to attempt to form a coalition with the Democratic Unionist Party to secure a parliamentary majority. If they fail to reach an agreement, there is every possibility that the UK voters will be back at the polling stations later in the summer. 

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Multi-Asset Blog - America Last?

11 May 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
America Last?

US investors could be forgiven for putting America first in their asset allocation over the last seven years. US stocks gained over 130% from the end of 2009 to the end of 2016, whilst the rest of the developed world rose less than 30% and emerging markets only managed to return 6% in dollar terms.

American equities have had a lot going for them: a hugely supportive central bank, the strongest recovery of the large developed economies, high and growing margins and a vast buyer of equities – the companies themselves - issuing debt to buy back shares. These elements have all contributed to stronger earnings growth than was available elsewhere. In addition, global investors have been willing to attribute higher valuations to capture these earnings, further boosting share prices. 

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Multi-Asset Blog - Choppy markets after flat calm

21 April 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
Choppy markets after flat calm

After months of plain sailing in markets, a squall has buffeted markets over the last month. Global equities when measured in Sterling have fallen 4.5% from peak to trough. In the US, equity markets had gone 110 days without falling 1%; they typically fall that much every 11 days. That run inevitably came to an end in March. 

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Multi-Asset Blog - The Fed raises rates

16 March 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
Surprise! The Fed raises rates expected

Just three years ago, the Federal Reserve predicted that by March 2017, interest rates in the United State would have been hiked 11 times and stand at 3%. The reality has been just 3 rate rises to 1%. Disappointing growth and subdued inflation has dissuaded the committee from increasing rates at a faster pace.  

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Uncovering the DNA of markets

27 February 2017

Our approach to diversifying assets makes us a little different from most other asset managers. That’s because we try to look at the ‘DNA’ that drives a market – something known as ‘factor investing’

How we use ‘factor’ investing in our Multi-Asset portfolios
One of the things that sets our Multi-Asset portfolios apart is our use of ‘factor’ investing when selecting assets. The main reason to hold a variety of asset classes is to make your portfolio more stable. But this idea only holds true if the assets you select are uncorrelated. In other words: asset class returns are independent of each other, thereby reducing a portfolio’s overall risk. 

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Multi-Asset Blog - New investment - British Empire

15 February 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset.
British Empire: an undervalued asset

Sometimes investing is simple. Everyone understands that if you can buy something for less than it’s worth you should do well. British Empire adopt this approach in less well researched parts of the market, looking for both undervalued assets, and importantly, underlying assets that will appreciate over time. Their hunting ground is in investment trusts, family controlled holding companies and property companies listed around the world. These give them exposure to a hugely diverse range of investments, including ecommerce businesses, New York real estate, Swedish industrials and German residential property. 

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Creating Cost Efficient, Highly Diversified Portfolios

14 February 2017

Will Bartleet, CIO and Portfolio Manager of Pacific AM Multi-Asset and Lou Cucciniello, Head of Diversifying Assets explain how their close working relationship allows them to create cost efficient, highly diversified portfolios.

One of the things that sets Pacific Asset Management’s multi-asset portfolios apart is our use of ‘factor’ investing and analysis when selecting assets. 

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Multi-Asset Blog - The devil and the deep blue sea

08 February 2017

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset.
The French elections: Between the devil and the deep blue sea? 

2016 was a year of tremendous political upheaval and yet calm markets: the Brexit vote was shrugged off in a few days and Trump’s election result in a couple of hours. How will markets respond to political risks in 2017?  

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