CONTENTS February 2022 PAGE 28 EDITOR’S LETTER number of economic forecasts and investment outlooks will, no doubt, already have been rewritten as we segue from an eventful January into a somewhat more settled February. Having made a change of my own, namely succeeding the eminently respected and hugely likeable Sebastian Cheek as editor of Portfolio Adviser , I know that 2022 will be an interesting and unpredictable year. I look forward to getting to meet our readers at PA ’s in-person events this year, details of which can be found at the back of this magazine. February marked the start of the Winter Olympics in Beijing, Lunar New Year and the Year of the Tiger. So, it was only fitting that we turn to China in our cover story (p20). It has been a challenging couple of years for the world’s most populous country and its policy of zero-Covid has certainly raised some eyebrows. A Chinese proverb says: ‘He who rides a tiger is afraid to dismount.’ Perhaps an apt analogy for the dilemma it faces. Zero-Covid was a bold strategy, but how do they walk it back? Staying with the ‘big cat’ theme, Liontrust’s James Klempster talks asset allocation in a rising-rate environment (p36), while Suzanne Hutchins from Newton Investment Management gets real about returns (p28). Beckett Asset Management portfolio manager Tony Yousefian talks about a future without the “big boom and bust” of the past (p32), while EdenTree’s Andy Clark discusses e ective ESG communication. Until we have an opportunity to meet in person, please don’t be shy about reaching out to introduce yourself. I’d be delighted to hear from you. Kirsten Hastings , group editor kirsten.hastings@bonhillplc.com A Standing firm: The success of Suzanne Hutchins’ Real Return Fund shows there’s life in the absolute return sector yet 01 10 12 14 NEWS ROUND UP PAGE 06 inflation soars 02 PROFILES & ANALYSIS PAGE 20 06 ECB keeps rates on hold as 08 D2C platform outsources buy list research Jupiter duo paid £60m fee in Chrysalis shares Sector report: Digital storage in the cloud could drive the fourth industrial revolution On the money: For financial planners ‘outsourcing’ is becoming a redundant term Counterpoint: The success of sustainable investing requires a total overhaul of how we all think about business and politics Companies & markets: M&G buys into Moneyfarm and Monzo to launch an investment arm Economic summary: Richard Lloyd will be interim chair of the FCA; European Central Bank holds its -0.5% deposit rate 20 Viewpoint: Few of the problems that held back China in 2021 have been resolved. Can it get back on track? 24 Bonhill Intelligence: Inspite of general risk aversion, UK investors are showing renewed appetite for GEM equities 26 Contrarian: With ESG gaining momentum, investors need to be smarter about what does and doesn’t bring about change 28 Fund manager profile: Absolute return may be falling out of favour in many quarters, but Suzanne Hutchins’ Real Returns Fund continues to show staying power Continued on page 5 15 16 19 ROARING BACK After two tough years, China is looking to claw back some of its appeal KEEPING IT REAL Newton’s Suzanne Hutchins on navigating falling markets and unexpected liquidity events Pages 28-31 FOLLOW THE CALL Globalisation means cycles have narrowed from peak to trough, says Beckett’s Tony Yousefian Pages 32-35 TOOLS OF ENGAGEMENT Eective ESG communication in a crowded market with Edentree CEO Andy Clark Pages 38-44 On the cover: After a turbulent 2021, will China see a turnaround as the new year of the tiger unfolds? See page 20 for the full story ‘ ‘THE THE CYCLES WE USED TO GO THROUGH, FROM PEAK TO TROUGH, HAVE NARROWED BECAUSE OF GLOBALISATION’ Tony Yousefian , portfolio manager, Beckett Asset Management February 2022 | www.portfolio-adviser.com PAGE 32
Portfolio Adviser Portfolio Adviser Magazine February 2022: Page 3
