Welcome to the very first edition of Wealth DFM magazine, the magazine for wealth management and discretionary fund management professionals who appreciate the finer detail on today’s most relevant topics.
It’s hard to remember a time when the world of investment and asset management has been quite so dynamic and exciting. Perhaps the Scorpions summed it up in their lyrics of 30 years ago when they declared: “the future’s in the air. Can feel it everywhere. Blowing with the wind of change.” Sounds about right to me!
ESG AS A DRIVER
The global battle against the climate crisis and the environment is changing the world of investment for good. Responsible investing and ESG (environment, social and governance) considerations have become a significant factor in stock selection and asset allocation strategies. It now looks set to become a mainstream consideration in investment decisions as well as corporate behaviour.
THE BATTLE AGAINST COVID-19
The use of vaccines is picking up across the world, bringing with it the hope that the worst effects of this cruel coronavirus pandemic can be overcome in time. With it, the hope is that economies, businesses and individuals can begin the long road to recovery from the immense impact which the past year has inflicted on the world and its people.
VALUE AND VALUATIONS
Aside from the more traditional debates as to the relative merits of value or growth investing and the recent return to fashion of value stocks, there has also been much discussion and debate about whether the global bull market in equities is about to come to an abrupt end. As the world begins to face the future of living with Covid, the resulting debt it’s generated, the likelihood of inflation and the chance of rising interest rates as well as the rise of China as a world superpower, it means that keeping a clear investment head and employing an effective investment strategy has never been more important. And what does that mean for passive investment strategies? Might this really be the era of the active fund manager?
RETAIL THERAPY AND THE CRYPTO CRAZE
We have all had our eyes opened by the activities of retail investors so far this year, using the power of trading apps and Reddit to try and take on the hedge funds. The rise of bitcoin has also grabbed the headlines, with Tesla’s flamboyant CEO Elon Musk, announcing on Twitter in early February that he’d invested $1.5billion into the cryptocurrency. It hasn’t done much for his personal wealth however as the price of bitcoin has been a rollercoaster ride in the latter part of February. Bitcoin fluctuations are now affecting shares in Tesla so the ripple effect of Musk’s fascination with crypto has real inroads into the value of the world’s most highly valued car manufacturer.
All this means that there could hardly be a more interesting and pivotal time to launch a magazine which is focused on the issues dominating investment decisions for asset management professionals. Most of these themes are featured in this first edition. We hope you find it of interest.