Before you get stuck in
Nick BlakeManaging DirectorWealth
Hello again, and welcome to the latest edition of Investment Edge. In this publication, we discuss several timely topics.
First up, our Head of Global Assets, Tara Gillespie, discusses a dilemma facing many wealth firms we’ve spoken to, when and how to get back into bonds? With many firms having taken their clients out of bonds to avoid the ‘inevitable’ falls, when is the right time to get clients out of cash and back into a balanced portfolio, and how should you approach this? As always, Tara provides additional food for thought beyond simply returning to where you started.
Sustainable investing guru Paul Lee then discusses the topic of climate as an investment risk and opportunity. He likens the climate imperative to needing a similar transition as seen in the agricultural and industrial revolutions, with associated risks and opportunities for the companies your clients are invested in. The question is, how can you get ahead of competitors by making climate risk management a leading part of your value-add?
A question we’re often asked at Redington is, “Which risk measure do you use?” Our answer is “many”, as we don’t believe it’s appropriate to consider risk through a single lens. Alex White, our Head of Asset & Liability Management Research, provides a helpful explanation of the various ways we think about risk when helping firms build their solutions. As you’ll see, each has its pros and cons, which is why a balanced approach is often our recommendation.
We bumped into Javier Arias at the water cooler this month. Javier's research focuses on emerging market debt and investment grade corporate markets.
Enjoy the read and, as many of you do, please let us have your thoughts.