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News and Views - March Newsletter

Hear Adrian Gosden speak on the recent UK Equities conference hosted by Citywire

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Banks remain well capitalised and resuming dividends is an important signal to the market
Rob Bailey, Head of UK Wholesale Distribution

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If you have further questions on our UK Equity Income offering or any of GAM's strategies, please contact us here.

 

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After much anticipation, a host of banks have now signalled a resumption of dividend payments, including Barclays, Lloyds, NatWest and Standard Chartered. For our investment experts Adrian Gosden and Chris Morrison, who manage GAM UK Equity Income Fund, such announcements are welcome and constructive for sentiment and valuations. Earnings guidance was understandably muted across the board and both Adrian and Chris believe the cautious messaging could limit share price progress in the short term.

However, banks remain well capitalised and resuming dividends is an important signal to the market. In order to trade closer to book value, banks need to demonstrate growth. Steeper yield curves will help in this respect, but ultimately a strong economic recovery from the Covid-19 pandemic will drive the top line.

In this online newsletter we have brought together the latest content from across our website to provide you with the investment ideas, product information, virtual events and Insights from our investment managers that may help you to better understand this opportunity. And as always, should you wish to discuss any of the topics our contact details are at the bottom of the page.

Viewpoint – GAM Quarterly Magazine

We hope you enjoy reading this latest edition of Viewpoint and that you and your families remain safe and well.

Read here

INVESTMENT IDEAS

Featured Strategy: UK Equities

GAM UK Equity Income is a core equity income fund aiming to deliver steady income and capital growth. The fund is managed by an experienced team, Adrian Gosden and Chris Morrison, who apply their proven cash flow-based investment approach to invest in companies with strong dividend prospects. The result is an active, concentrated and liquid portfolio diversified across sectors and market caps.

REASONS TO INVEST

Disciplined approach

Equity income managers typically take a long-term view, as reinvested dividends can make a huge difference to returns over time, due to the power of compounding.

Steady income

Dividends are typically much less volatile than earnings and can deliver steady income for investors. Dividend growth has held up consistently in recent years.

Consistent returns

Equity income funds can be a reliable investment in periods of lower growth and market volatility, as companies are often reluctant to cut dividend payments.

Appeal in a low-rate environment

The current UK dividend yield premium over government bond yields is considerable. Low rates support the case for investing in a UK dividend- orientated strategy.

GAM UK Equity Income is a core equity income fund aiming to deliver steady income and capital growth. The fund is managed by an experienced team, Adrian Gosden and Chris Morrison, who apply their proven cash flow-based investment approach to invest in companies with strong dividend prospects. The result is an active, concentrated and liquid portfolio diversified across sectors and market caps.

Hear Adrian Gosden speak on the recent UK Equities conference hosted by Citywire

EVENTS

GAM has a wealth of insightful thought provoking events. Keep an eye on the events section below, in order to register for the 2021 events we have in the pipeline, or even to catch up on previous events you may have missed.

INSIGHTS

Our investment specialists are among the brightest minds in the industry. Please click on the insights below to learn more about their views on markets and asset classes.

Active Thinking
Active Thinking: Applying Swiss precision to a global investment opportunity set.
23 February 2024

Swiss companies’ reach is probably more global than you realise. Daniel Häuselmann discusses how a combination of Switzerland’s stability and mindset of excellence through innovation have helped Swiss companies to become leaders on the world stage.

Charles Hepworth Blog
Fed wary of cutting US rates too quickly
22 February 2024

FOMC meeting minutes suggest cautious approach to cuts until inflation battle is won.

Charles Hepworth Blog
UK services sector continues to expand
22 February 2024

More of the same, as services sector grows but manufacturing contracts, posing dilemma for the Bank of England.

Active Thinking
Active Thinking: China’s economic evolution beyond stereotypes
20 February 2024

Jian Shi Cortesi, Investment Director, Asia/China Growth Equities, delves into the intricate dynamics of Chinese and Asian equities. She focuses on the impact of manufacturing shifts, India’s emergence and the potential parallels with Japan’s economic trajectory.

Charles Hepworth Blog
UK retail sales bounced back strongly in January
16 February 2024

Recovery from December’s disappointment raises hope that UK recession could be both shallow and brief.

Newsletter Archive

CONTACTS

Disclaimer: Past performance is not an indicator of future performance and current or future trends. The indications could be based on figures denominated in a currency that may be different from the currency of your residence country and therefore the return may increase or decrease as a result of currency fluctuations. Capital at risk: all financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. Any reference to a security is not a recommendation to buy or sell that security.