The Omnis Investment Club

A positive week for markets, driven by positive noise out of the U.S. debt ceiling negotiations, and signs that central banks may soon stop raising interest rates. In Japan, markets near a 33-year high, whilst in China, concerns that the economic recovery is losing steam weighed on markets. In the UK, the focus remains on inflation.

Investors continue focussed on the three key variables – Firstly, economic growth, and specifically how deep or shallow any recession we have might be. Secondly, all eyes remain on inflation, which, whilst appears to be slowing, remains elevated. Finally, investors remain vigilant on future interest rate hikes, with further hikes still expected across the world.

It was a fairly muted week for market, mainly as result of it being a quiet week for economic data. In the US, the focus turned to corporate results; in Japan, all eyes are on the central Bank. Investors in China worry about tensions with the US. In Europe, investors focussed on data suggesting a strong economy, but in the UK, inflation continues to take the limelight.  

Broadly speaking it was a reasonably positive week for markets – driven by data suggesting more resilient economies around the world. Worries about the economy recover in China remain a concern and Japanese equities in particular get a boost this week.  

Markets rallied across the world as disruption in the banking sector begins to settle as regulators intervene to protect the financial system. Inflation remains problematically high around the world. China’s economic rebound gains pace whilst in the UK, the economy proves to be more resilient than expected.

The last few weeks have been eventful, driven by turmoil in the banking sector. On Sunday 19 March, UBS agreed to purchase Credit Suisse and central banks across the world announced coordinated action to ease strains in financial markets. Markets reacted broadly positively. The US Federal Reserve and the Bank of England raise interest rates this week too.  

The evolving situation with Silicon Value Bank and Credit Suisse

Signs that interest rates could carry on rising for longer dampened investor sentiment across the globe. In China, a lower economic growth target also weighed on markets. The financial health of Silicon Valley Bank (SVB) was also a focal point towards the end of the week, with developments well into the weekend. 

Please note that within the Omnis funds, only one of our funds has direct exposure to SVB – and that exposure equates to 0.1% of the fund. For most investors, the fund constitutes a small proportion of their overall portfolio, meaning that any exposure in clients’ portfolios is negligible.

After weeks of losses, markets delivered positive returns across the board. In the US, mixed economic data meant investors took a breather. Japan gets a boost of optimism, whilst in China, despite strong data, the growth expected for 2023 is likely to underwhelm. Closer to home, the UK and the EU clinch a deal after years of post-Brexit tensions.

It was a challenging week for markets – higher inflation numbers point to potentially larger interest rate hikes, whilst economic activity in many parts of the world appears to show more resilient economies. This would allow central banks to continue raising interest rates if inflation remains high.

A mixed week in markets, dominated by the outlook for inflation and what this could mean for interest rates going forward. Geopolitical tensions escalate between the U.S. and China.

Broadly speaking markets were down across the world – for various reasons, but clearly focused on what’s next for central banks. In the US and Europe, any signs from the central banks on what’s next continues to drive markets. In Japan, investors await news on who the next central bank chief might be, whilst geopolitical tensions pick up in China. The UK economy avoided a recession in 2022, but only just.

The US Federal Reserve, the Bank of England and the European Central Bank all raised interest rates this week as widely expected. But investors focused on their narrative after these interest rate hikes. In the US, things are getting better but the Fed is taking baby steps. The Bank of England is suggesting it is done with interest rate hikes as the economic slowdown will help bring inflation down and the European Central Bank has said they are not done with interest rate hikes just yet.

Investor sentiment is boosted globally as data suggests that the global economic picture may not be as bad as previously anticipated. All eyes will be on the Federal Reserve (US Central Bank), European Central Bank and Bank of England this week as they meet to decide on interest rate increases.

Recession concerns come back to the forefront, dampening investor sentiment, and breaking the 2023 market gains for Western economies. Over in Asia, demand was boosted by better-than expected data coming out of China.

Another strong week for markets, dominated by falling inflation in the US, data out of Europe suggesting that the economy might not suffer as much as originally expected and the surprise expansion of the economy in the UK during November.

On behalf of everyone at Omnis Investments, we’d like to wish you a Happy New Year! 

2023 has begun with most markets in green led by strong jobs data in the US and falling inflation in Europe.

I am joined by two of my colleagues; Robert Jeffree (Chief Investment Officer) and Colin Gellatly (Chief Investment Strategy) to discuss the final busy week with increases in inflation and interest rates and the extraordinary year we've had.

Broadly speaking, markets fell this week as concerns about aggressive interest rate hikes remain at the forefront, with key central banks making decisions on interest rates during this coming week. Over in Asia, domestic factors supported markets – in Japan a stronger economy kept investors upbeat and in China, markets were encouraged by the change in approach to their zero-covid policies.

This week, investors were (yet again) focused on interest rates. From suggestion by the central bank in the US, to falling inflation in Europe, markets were lifted on expectations of slower interest rate hikes from here. Development in China has led to a review of its zero-covid policies. Broadly speaking markets reacted positively to the news of slower interest rate hikes and the developments in China.

Overall markets were positive over the week. Investors were broadly focussed on any indications that would allow central banks to slow down the pace at which they raise interest rates. Signs of economic slowdown and that inflation may soon begin to fall set the scene for markets this week.

It was a mixed week for markets around the world. In the US, investors continue to look for reasons for the Federal Reserve to slow its interest rate rises. High inflation and poor economic data in Japan weighed in markets, whilst in China investors balanced their optimism of a gradual reversal of its zero-covid policies with the negative news of rising cases. In the UK, all eyes were on Jeremy Hunt’s tax rises and spending cuts as inflation continues to soar.

Markets around the world rallied, with the news that inflation appears to be slowing in the US, boosting investor sentiment around the world. A relaxation in China’s zero-covid policies provided some further support in Asia. Meanwhile, economic contraction in the UK weighed on the UK stock market.

Omnis Investments would like to offer our deepest condolences to the royal family. Her Majesty Queen Elizabeth II spent her life dedicated to the service of her people, led by example, and gave herself to her country and the commonwealth. May she rest in peace.

Over the last few weeks we know that many of our clients have been asking about the outlook for bonds, in particular gilts, from here – in an environment of high inflation, rising interest rates, slowing growth and an evolving political landscape.

On 8 September, host Rohit Vaswani, Client Portfolio Manager at Omnis chatted to Nicolas Trindade, from Axa Investment Management, who runs out Omnis Short Dated Bond Fund on this very topic.

This episode aims to try and simplify some of the mechanics of how bonds work and the outlook from here. Even with these simplifications, this is one of our more technical podcasts but I think provides some really valuable insights into the world of bonds. 

Enjoy.

The US was rocked by high inflation, whilst the Chinese economy began showing signs of slowing down. Japan remains committed to supportive policies for its economy. Meanwhile recession fears intensify in Europe, but the UK economy unexpectedly grew in May. Markets continue to focus on inflation, economic growth (or lack of) and the direction and speed of interest rate rises.

High inflation, and interest rate expectations, remains very much at the forefront of investors around the world. In Asia we saw some promising news – in Japan, the economy appears to be in slightly better shape than many expected, and in China, there are signs that the government is looking to be more supportive of its economy. Meanwhile central banks in the West continue to face the pressures of high inflation.

Markets took a bit of a breather from the negative moves in the last few weeks, despite the ongoing uncertain outlook of slowing economic growth, rising inflation, and aggressive interest rate hikes from central banks. There are increasingly signs that inflation is beginning to peak which may in turn take the pressure of central banks to raise interest rates too aggressively.

In another volatile week in markets, the focus remains on how central banks plan on taming inflation and the impact this could have as economic growth around the world continues to slow down. Inflation appears to be having an impact on consumer confidence and therefore consumer spending. Central banks remain focussed on taming inflation, with the European Central Bank set to raise interest rates for this first time since the pandemic in the coming months.  Meanwhile in China, the central bank takes action to support its weakening property market.

In this interview special podcast, host Rohit Vaswani, Client Portfolio Manager is joined by Colin Gellatly, Deputy Chief Investment Officer at Omnis Investments, to discuss what's been going on in markets since the start of 2022 and what can we expect moving forwards. 

It was generally a positive week in markets across the world, but it is obvious that risks remain across particularly with the ongoing conflict in Ukraine, rising inflation and the prospect of central banks raising interest rates aggressively. Russia’s stock markets partially reopened in a shortened and volatile trading session on Thursday, as the country’s invasion of Ukraine reached the one-month mark.

 Events in Ukraine continued to dominate headlines, demanding attention from all, investors included. From a market perspective, Europe’s decision not to follow the US in embargoing Russian oil and gas was critical to developments over the week, as it has removed some of the worst scenarios for European the economic growth outlook.

On yet another volatile week, markets across the world were sent tumbling down as Russia’s attacks on Ukraine continue. European and UK stocks were the worst impacted during the week. The West continues to take further action against Russia, whilst Ukraine and Russia continue to negotiate.

Please bear in mind that this update was written on 6 March 2022 and was correct at the time of publishing.

On Thursday, Ukraine woke up to explosions as peace in Europe was shattered. After Russia spent several weeks building up a sizable military force along its border with Ukraine, Russian President Vladimir Putin ordered its military to invade Ukraine. NATO said, "We now have war in Europe on a scale and of a type we thought belonged to history." The situation in Ukraine and the impact on markets around the world is changing all the time. Please bear in mind that this update was recorded on 27 February 2022 and was correct at the time of publishing.

The situation in and around Ukraine is deeply political and highly complex and it remains far from obvious how events will unfold. Meanwhile, the consensus outlook for inflation, economic growth and interest rates continues to shift, adding to the uncertainty. For investors, uncertainty means volatility – as evidenced by the ups and downs of major market indices over the past week.

Markets continue to be volatile and continue to be dominated by expectations of what central banks will do throughout 2022. This week we also saw a lot of share prices move because of either positive or negative reports from companies. Oil prices continue to rise which has benefitted some energy companies. It would be fair to say that markets will continue to be volatile over the coming weeks and months.

Markets continue to be volatile this year, dominated in the short term by the prospect of rising interest rates. Beyond interest rate expectations, many companies are reporting challenges to their businesses, escalating geopolitical tensions around the Ukraine/Russia border, weak economic data from China and rising Covid-19 cases in some parts of the world have also caused markets to jitter.

Inflation remains at the forefront of news and investor sentiment. Meanwhile, Japan and China continue to tackle fresh waves of the coronavirus, whilst in Europe and the UK restrictions begin to ease. The UK economy grew to above its pre-pandemic level for the first time, but this was before news of Omicron weighed on economic activity.

It continues to be a volatile time for markets as the world continues to face growing Covid-19 cases. Central Banks have begun talking about controlling inflation, with the Bank of England raising key interest rates for the first time in more than three years.

There are still many unknowns about Omicron – so how do our investment managers consider these risks when it comes to investing? In this month’s interview special, Rohit Vaswani, Client Portfolio Manager at Omnis Investments speaks to Nabeel Abdoula at Fulcrum Asset Management and investment manager of the Omnis Diversified Returns Fund. 

Despite the reimposition of social restrictions here in the UK and elsewhere, investors – along with everybody else – have breathed a sigh relief as early evidence suggests the omicron variant may not pose as severe a threat as had been feared. Meanwhile, evidence from Europe, Japan and Asia suggests supply chain bottlenecks may be easing. Together, these developments have allowed investors to look forward to next year with a degree of optimism.

It was a fairly muted week for equity markets across the world, with the exception of the UK, where inflation rose to the highest level in almost a decade. In the US, investors weight inflation fears against strong economic data, whilst in China a larger-than-expected stimulus had little effect on markets. In China, the Real Estate market continues to worry investors, and in Europe a surge in Covid-19 cases clouds the economic outlook.

A special interview with Hannah Simons, Head of Sustainability Strategy at Schroders. As our guest this week, Hannah discusses all things climate change and COP26 - the key achievements and outputs - and what that means for investors. 

Equity markets were positive across the world last week, except for China where the concerns about the strength of its property sector and rising Covid-19 cases weighed on markets. In the UK, the central bank keeps interest rates unchanged, and, in the US, the long-awaited infrastructure bill is approved.  

Equity markets were moderately positive across the world last week, except for China where the concerns about the strength of its property sector weighed on markets. Corporate earnings appear to be positive, but supply chain problems and inflation concerns persist. Japan goes to the polls and in the UK, Rishi Sunak announces targeted spending initiatives.

 Equity markets were mixed across the world this week. Corporate earnings appear to have boosted investor sentiment in the US and in Europe. Japan readies for its upcoming general election and China seeks to contain the property crisis amid a slowing economy. In the UK, investors are expecting that an interest rate hike could come sooner than expected. 

Equity markets rose this week across the world. Inflation in the US appears to be peaking, whilst Japan’s new Prime Minister reassures the market. China sees a muted week in markets, whilst shares in Europe and UK rally, despite the continued concerns about inflation.

Robert Jeffree, our Chief Investment Officer, recently celebrated his 1-year anniversary at Omnis and he joined Rohit Vaswani, Client Portfolio Manager, in this interview special. The interview covers:  

1.            Who is Omnis and what benefits does our model deliver for clients

2.            Our investment approach – how do we select managers?

3.            The Omnis Managed Portfolio Service – how does it work?

We hope you find the interesting and useful in understanding our approach – as always, please speak to your financial adviser if you want further information about Omnis.

Equity markets rose this week, helped by US congress agreeing to increase the US debt ceiling temporarily allowing the US to avoid defaulting on its debt payments until early December. Inflationary pressures continue to be front and centre of investors’ minds.

It was a mixed week in markets, dominated by news of China’s second-largest property developer Evergrande’s debt problems. At the same time, global economies are facing a slowing in economic growth with inflation rising sharply.

Overall markets fell this week with key data coming out across the world. In the US, inflation appears to be falling. Japan’s optimism continues, owing to an incoming, yet-to-be elected, prime minister and the successful acceleration in their vaccination campaign, whilst in China fresh coronavirus outbreaks continue to have an impact on the economy. In Europe and the UK all eyes were on inflation and what this might mean for interest rates from here.

Investors’ attention continued to focus on central banks looking for hints as to when they might start tapering financial support, ahead of interest rate rises. The previous week’s weak labour report in the US, which highlighted the slowing economic recovery weighed on markets last week.

It was a muted week for markets, with the except of Japan, driven by mixed economic numbers. In the US, reports on the labour market delivered underwhelming numbers, whilst inflation in Europe continues to pick up. China sees economic activity drop whilst Covid-19 cases in the UK are on the rise again. Over in Japan, Prime Minister Suga resigns.

Overall, it was a negative week for markets globally. Worries over tighter central bank policy in the US and fears that economic growth could be peaking weighed on investor sentiment. This comes at a time when the highly contagious delta variant continues to disrupt supply chains and add to uncertainty.

Stock markets enjoyed a positive week. In the absence of much notable economic news, most market indices ground higher. 

Our latest episode of The Omnis Investment Club podcast is a special interview with Tim Foster, Portfolio Manager at Fidelity International.

As our guest this week, Tim discusses all things Inflation and Bonds. We explore the inflation environment in more detail - why it has picked up dramatically, whether it's transitory and what it means for Bonds.

Stock markets enjoyed a positive week. Strong economic data and a slew of upbeat company earnings reports were enough to offset concerns over the continued spread of the delta variant and talk of central banks ending their extraordinary support packages.

It was a challenging week for markets globally, driven by continued news that the pace of the global economic growth is slowing, exacerbated by the spread of the delta variant and the impact this could have on economic growth. China’s regulatory crackdown on the private education sector proved to be much tougher than expected, sending concerns amongst investors globally.

 It was a mixed week for markets globally. Most markets fell at the start of the week, but many recovered those losses. The spread of the delta variant and the likelihood that growth is slowing has impacted markets, but we saw some positive economic data coming out of Europe and some optimism return in the US as companies reported earnings. 

On today's podcast, the tables have turned...and instead of Rohit Vaswani interviewing a guest, he is put in the hot seat - joined by Setul Mehta, Head of Business Development Operations at The Openwork Partnership. Setul challenges him on all things investments - Omnis, mutual funds, asset classes, Bitcoin and much more.

 It was a tough week for markets. Stocks on both sides of the Atlantic met their worst weekly performance in at least a month due to fears about the rapid spread of the Delta variant of coronavirus. We also saw higher inflation being reported in the UK and the US which weighed on markets during the week. 

An interview with Katie Deal, Investment Analyst at T.Rowe Price. 

Rohit Vaswani reviews last week and talks to Jonathan Gosling, Investment Manager about fixed income as an asset class and they discuss the Fixed Income funds available at Omnis.  

Do Cryptocurrencies belong in diversified portfolios? Rohit Vaswani looks at what was a challenging week for stock markets and is joined by Ben Popatlal, Strategist at Schroders to explore Cryptocurrencies as an investment. 

Rohit Vaswani is joined by the CEO from Somerset Capital Management to talk about their investment process and approach since they took over management on 8 April 2021.

Rohit Vaswani is joined by Jonathan Gosling, Investment Manager at Omnis Investments, to look at what it’s been like for active management in the last 12 months.

Rohit Vaswani is joined by Sherry Qin from Fidelity International as they look at the Chinese economy and identify investable themes as the country prepares itself to bring in the Year of the Ox.  

Markets last week were concerned about a slowdown in economic growth, which became more concerning amidst rising Covid-19 cases globally. Despite a sharp decline in markets in the middle of the week, most appear to have recovered, ending the week flat or mildly positive.

It was a mixed week for markets globally. Strong economic data has driven positive investor sentiment this week. This has been somewhat dampened by rises in infection rates due to the ‘delta’ variant of the coronavirus. Unemployment in many parts of the world appears to be coming down. 

Rohit Vaswani, Client Portfolio Manager at Omnis reviews the week just gone, looking at macroeconomic data and how the markets performed. 

 After a difficult week for markets in the previous week, inflation fears appear to have calmed down this week, triggering most global markets to post gains last week. Countries continue on their path to reopening their economies wrapping up the first half of the year with an optimistic tone. 

The US Central Bank, The Federal Reserve, indicated that it may raise interest rates sooner than previously expected, sending markets globally tumbling down. Covid-19 cases in Europe and Japan fall, but England delays the full reopening of society. 

In this episode Rohit Vaswani was joined by Omnis Investments’ Deputy Chief Investment Officer Colin Gellatly to review how reddit traders sparked a short squeeze, unnerving equity markets back in January this year. 

This shorter podcast clip only includes the interview with Colin Gellatly. The weekly market updates will continue to arrive on Mondays. 

 Interest rates and inflation seemed to continue to dominate sentiment last week. Markets were mixed across the world, dominated by news on economic growth, inflation and increases or declines in Coronavirus infection rates. Central Bank’s ‘accommodative’ policies are set to continue. 

On this week's stand-alone interview special, we're delighted to welcome Rosemary Simmonds, Investment Manager at Barings onto the podcast. Barings took over investment management responsibilities of the Omnis European Equity Opportunities Fund on 17 may 2021, and with Rosemary being a key member of the management team, we spoke to her about their investment approach and outlook for the fund.

In this week's podcast Colin Gellatly, Deputy Chief Investment Officer at Omnis provides the weekly update for the week just gone.

Markets trod water last week – until Friday, when tame US employment data put paid to immediate concerns of inflation and rising interest rates, allowing equities to finish the week on a firmer footing. Investors are likely to remain sensitive to signs of inflation – or its absence – over the coming months.

 Investors welcome the positive economic data coming out of many economies globally, but this also continues to raise their concerns about inflation and the actions that the central bank may take and when they might do so. Markets ended the week reasonably flat, despite a volatile trading week. 

Investor sentiment was very weak, following a surprise increase in the US inflation figures for April 2021. Worries that a pick up in inflation would lead to higher interest rates weighed on markets across the world. Chinese stocks however,rose during the week. 

It was generally a positive week for stock markets globally, despite a weaker start. Inflation prospects seemed to weigh heavily on investor sentiment during the week as Treasury Secretary Janet Yellen commented on rising interest rates. Economic data highlights the strong global rebound in economic activity. 

This week Rohit Vaswani takes a longer look at last week's stock markets and economic data. It was a challenging week for stock markets despite overall positive economic news.

In today's  'Week in Brief' Rohit Vaswani reviews stock markets, consumer sentiment and economic data. For this week's interview,  we speak to Nabeel Abdoula, Deputy Chief Investment Officer of Fulcrum Asset Management and manager of the Omnis Diversified Returns Fund. The fund has recently began investing in the Climate Change theme and Nabeel talks to us about the investment opportunity.

This week in the "Week in Brief" we review stock markets, consumer sentiment and economic data. In today's interview, we speak to Dominic Johnson, CEO of Somerset Capital Management, who have recently been appointed as the investment manager for the Omnis Global Emerging Markets Equity Opportunities Fund. 

As we begin to close the first quarter of 2021, we mix things up on The Monday Investment Club. In this Around the World bonus episode, Client Portfolio Manager Rohit Vaswani and Deputy Chief Investment Officer Colin Gellatly, take a tour around the world and assess what has happened in economies and stock markets since January.   

In this week’s episode, Rohit Vaswani reviews last week and talks to Jonathan Gosling, Investment Manager about fixed income as an asset class and discuss the Fixed Income funds available at Omnis.  

In this week’s episode, Rohit Vaswani reviews last week – generally a fairly positive week for stock markets – and talks to Rory Maguire of Fundhouse around what ESG investing is and our approach at Omnis. 

This week, Rohit Vaswani looks at what was a mixed week for global stock markets, dominated by stimulus packages, inflation concerns and the easing of restrictions. Of course, in the UK the focus was on Rishi Sunak’s Budget – Rohit discusses the Budget with Omnis’ Chief Investment Officer Robert Jeffree

In this week’s episode, Rohit Vaswani looks at what was a challenging week for stock markets and is joined by Ben Popatlal, Strategist at Schroders to explore Cryptocurrencies as an investment. 

In this week’s episode, Rohit Vaswani is joined by Jonathan Gosling, Investment Manager at Omnis Investments, to look at what it’s been like for active management in the last 12 months. 

In this week’s episode, Rohit Vaswani is joined by our Chief Investment Officer, Robert Jeffree, as they look at the current state of the UK economy and discuss what may happen from here. 

In this week’s episode, Rohit Vaswani is joined by Sherry Qin from Fidelity International as they look at the Chinese economy and identify investable themes as the country prepares itself to bring in the Year of the Ox.  

In this week’s episode, Rohit Vaswani is joined by Omnis Investments’ Deputy Chief Investment Officer Colin Gellatly as they review how reddit traders sparked a short squeeze sending stock markets crashing down. Beyond reddit traders, it was a busy week with vaccination rows and economic data coming out of Europe and the UK predominantly. 

 Rohit Vaswani, Client Portfolio Manager talks to Robert Jeffree Chief Investment Officer and Colin Gellatly, Deputy Chief Investment Officer.