Economic Commentary – April 2015

May 1st, 2015, by Georgina Ogilvie-Jones

We have had a number of meetings with fund managers in recent weeks, including Neil Woodford of Woodford Investment Management, Derek Stuart and Nick Shenton of Artemis, and Richard Pease and Simon Rowe of Henderson (and Crux). We have also seen a number of managers whose funds are not currently held in our client portfolios including Julian Fosh of Liontrust and Carl Stick of Rathbone. These meetings have helped refresh and in some cases reinforce our asset allocation and economic views in addition to providing us with helpful insights on the funds that they manage.

Global asset prices continue to be distorted by extraordinary monetary policy with quantitative easing now centred upon Europe and Japan and with low interest rates continuing to prevail in the other developed economies. Budget deficits remain high in many economies, despite the austerity measures attempted by some in recent years. This high level of government debt combined with a need to keep consumer and mortgage debt payments manageable for the electorate means that a “lower for longer” interest environment is likely, with only modest interest rate increases when they do occur…

Read the full economic commentary here…