Investment Fund News Brief

Low growth and low inflation are the watchwords for the year, according to JP Morgan Asset Management.

The firm is warning investors that active management and selecting the right investments is key.

Global Multi-Sector Income Strategy portfolio manager Iain Stealey describes the global outlook as far from thrilling.

“With low growth and inflation globally, and while central banks try to accommodate borrowing, investors can carry on  to enjoy better times, but they should watch out that this friendly space does not increase their risk. They need to actively manage portfolios and concentrate on selecting the right assets,” he said.

He quoted a strong end to last year has carried over as positive momentum for risk asset investors in to 2013

“A sense of calm and optimism has descended over markets,” said Stealey.

Encouraging markets

Percival Stanion, chairman of the strategic policy group at Baring Asset Management, London, also views the markets as offering encouragement to investors.

“Our take on the fundamentals is one of cautious optimism as we continue to see further improvements in the global economy. Data in the US shows the economy on a slow path to recovery, but a recovery all the same. Time is a great healer, even for financial markets and global economies,” he said.

Our conclusion is that some of the more extreme risks to markets have certainly been reduced. The prospect of a Euro breakup or a politically-induced economic calamity in the US looks to be significantly less than it was six months ago. Our economic scores reflect this, and the improving global outlook.

Invesco’s Perpetual Global Financial Capital Fund has returned 43.3% and has £43.5 million of assets under management after the fits year’s trading.

The fund invests globally in bank and financial institution capital securities and some equities.

Care home investment

Paul Causer, Co-head of Fixed Income at Invesco Perpetual, said: “Changes in financial services have continued for years as the credit crisis heals, and this has led to changes in the markets – and these changes have opened new opportunities.

“We believe banks and financial institutions are morphing in to different organisations to reflect tougher regulation. That’s why we have concentrated on financial capital securities for the past three years or so.”

Schroders UK Property Fund (SPF) is funding five new care homes in Suffolk for £28 million with Care UK.

Schroders will buy sites in Framlingham, Haverhill, Mildenhall, Lowestoft and Ipswich for development as 60 or 80 bed residential care homes.