Business · Markets · 3 hrs ago
M&G shifts investments towards the UK, Japan and emerging markets
M&G is shifting its funds towards the UK, Japan and emerging markets for the final quarter of the year.
The British investment manager sees shares as the main part of its strategy, but says investors need to be selective.
It favours companies with strong cash generation, pricing power and solid balance sheets, and considers valuations attractive, especially in the UK.
M&G also points to changes in Japan’s economic policies and to technology and industrial companies in Asia and emerging markets.
The manager favours choosing individual shares over crowded market indexes, saying company profits matter as valuation measures have fallen.
It expects strong business results to help offset higher interest rates, rising energy prices and political instability.
M&G has increased holdings of US and UK government debt as a defensive addition to portfolios through December.
M&G is shifting its funds towards the UK, Japan and emerging markets for the final quarter of the year.
The British asset manager sees opportunities in equities but says investors should be selective and complement portfolios with public and private debt.
It favors companies with strong free cash flow, pricing power and solid balance sheets.
M&G says valuations are attractive across its preferred regions, particularly in the UK.
Its multi-asset strategy has increased exposure to US and UK government debt.
- Who
- M&G, the British asset manager, is changing its portfolio positioning.
- What
- It is directing funds towards the UK, Japan and emerging markets, while adding government debt.
- When
- For the final quarter of the year and through December.
- Where
- The preferred equity markets are the UK, Japan and emerging markets; government debt exposure has increased in the US and UK.
- Why
- M&G sees attractive valuations and opportunities in these markets, and says high sovereign bond yields offer compensation and a defensive buffer.
This story does not have two clearly opposing sides.
M&G oriented its funds towards the UK, Japan and emerging markets.
M&G’s multi-asset strategy increased exposure to US and UK government debt.
- Preferred equity markets
- UK, Japan and emerging markets
- Government debt exposure
- Increased in the US and UK
- Convertible bond issuance this year
- More than $203 billion
- Convertible bond issuance linked to AI
- More than 53%
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