Corinne Lord, Investment Specialist at St. James’s Place, comments on the three asset classes the SJP Investment team ‘love’ this Valentine’s Day.
Valentine’s Day is a celebration of love and long‑term commitment- qualities that resonate deeply with how we invest. In that spirit, we’re highlighting the themes we’re most passionate about right now. We continue to see compelling opportunities across Developed Markets outside the US. Valuations remain more attractive than in the US, profitability trends are improving, and momentum has strengthened across the UK, Europe, and Japan. These markets have a meaningful valuation discount, improving fundamentals, and renewed investor appetite after several subdued years.
Emerging Markets have enjoyed strong momentum and have been clear beneficiaries of the return of market breadth. Valuations remain attractive relative to Developed Markets, even after a decade where earnings growth has been mixed. The opportunity set across EM is highly diverse. While absolute valuations now sit closer to historic averages, the discount to DM remains a key attraction, and the wide dispersion across countries creates exciting opportunities for active management.
Small caps globally are another area we remain positive on. Early-year momentum has been strong, profitability is improving, and valuations offer a notable discount to their larger‑cap counterparts. Historically, small caps have delivered a long‑run return premium, and today they trade at some of the most attractive relative valuations in years. The most pronounced disconnect is in the US, but opportunities are broad‑based. We favour implementing this exposure actively, with a quality tilt to help navigate dispersion.
As with relationships, consistency matters. That’s why we avoid taking overly concentrated positions in any single asset class, region, or manager. Diversification is what gives our portfolios steadier performance and smoother client outcomes. Our process helps us tune out the market noise and stay focused on the areas that truly create long‑term value: valuations, diversification, and discipline. Just like any good relationship, when the foundations are right, we can deliver over the long term.
