News and Views - March Newsletter

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.

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.