The Pride - Issue 5 - Autumn 2021 - Magazine - Page 3
FROM T H E ED I TOR
“
“
History does not repeat itself,
but it does rhyme.
dot com bubble burst. From 1987 to
the end of 1999, the US stock market
grew 543 per cent and the UK rose
635 per cent.
SIMON HILDREY
Chief Marketing Officer
On 22 August 2018,
the US bull market reached 3,453
days in length. Some commentators
stated that on this day it became the
longest in history, with the S&P 500
Index growing 385 per cent over the
previous nine years.
The UK stock market enjoyed a long
period of growth over this period as
well, with the FTSE 100 rising 209 per
cent from the start of March 2009.
Some people have christened this the
most unloved bull market in history
because of the lack of visible euphoria
associated with it. This is illustrated by
how the returns compare to the last
long bull market that ended when the
THE PRIDE
has been produced by Liontrust Fund
Partners LLP, which is authorised and
regulated by the Financial Conduct
Authority (518165). The registered office
is 2 Savoy Court, London WC2R 0EZ.
Past performance is not a guide to future
performance.
Do remember that the value of an
investment and the income from it can
fall as well as rise and you may not get
back the amount originally invested. If
you have any doubts about the suitability
of an investment, please consult a
financial adviser. The data and statistics
quoted in this magazine were correct at
the time of going to press.
Use of company logos or trademarks are
for referential purposes only.
If any investors had become overexuberant at reaching the milestone on
22 August, the following two months
will have been a sobering reminder
of the unpredictability of markets.
In September 2018 came the 10th
anniversary of the collapse of Lehman
Brothers (see Behind The Headlines,
P18), which is seen as the defining
moment of the credit crunch and “high
finance’s darkest hour”.
Then in October, we endured significant
falls in stock markets around the world
through a combination of factors, both
geo-political and economic. The FTSE
100 actually peaked on 22 May 2018
at 7,877 points and had dropped to
6,939 points on 26 October while,
in dollar terms, the MSCI Asia Index
peaked earlier in the year at 613
points on 29 January and had fallen to
462 points on 26 October.
Bond markets have also been
experiencing an increase in volatility
with interest rates rising in the US and
CONTENTS
4 Football, funds & fortitude
IN SI GH T
5 Olly Russ
M Y B E S T I N V E S TME N T E V E R
6 The Asia team
T E A M PROFI L E
8 Building a portfolio for
COV E R S TORY
post-QE markets
the UK and central banks increasingly
withdrawing support from markets.
The start of the bull market for bonds
dates even further back than equities to
the late 1980s.
What is in store for equities and bonds?
Sadly, we don’t have a crystal ball and
cannot predict how long bull markets
will last and when they will end.
What we can do is provide you with
the current economic and market views
and insights of all our fund management
teams in this issue of The Pride. Our
Global Fixed Income team analyses
what the end of ultra-low interest rates
and Quantitative Easing (QE) will mean
for investors on pages 8 to 11 and we
review the collapse of Lehman Brothers
on pages 18 to 20, with three of our
fund management teams highlighting
the key lessons 10 years later.
We hope you find this second issue
of The Pride interesting and insightful.
We really appreciated all the feedback
you sent us after the first issue and
have incorporated suggestions into
this second one. Please do email us
at thepride@liontrust.co.uk with your
feedback and comments on this issue.
18 Behind the headlines
FE ATU RE
21 How to handle an IPO
A RTI C L E
22 Together everyone
PA RTN E RSH I PS
achieves more
24 Viv Anderson
FOOTB A L L FI N A N C E
26 John Husselbee
FU N D MA N A GE RS’ D I A RY
12 Fund manager views
T E A M TA L K
and Paul Kim
Issue 2 Winter 2018 - TH E P R IDE - 3