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Understanding the Investment Paradox

Session: 20 May

As many places in the world still deal with the pandemic, we also see exuberant stock markets. So how should investors confront how to play a post-coronavirus recovery?

Listen to our Investment Paradox seminar to hear our asset allocation outlook for 2021 and our views on the key themes across Fixed Income, Equities and Property to try to identify where the likely investment winners and losers will be going forward.

There are four sessions which qualifies you for 150 minutes structured CPD:

  • 2020 Strategic Asset Allocation (SAA) – How M&G Treasury & Investment Office looks at asset allocation in 2021 – the themes we should consider and how we’re integrating ESG into our asset allocation process
  • An overview of Fixed Income – where can investors unlock value and what are the key drivers going forward
  • Commercial Property Outlook – outlook for the asset class, what we’re doing about evolving the strategy and considerations post covid and understanding the threats and opportunities within the asset class
  • Exploring the Equity Market – how we choose managers to run our mandates. How we look at value and growth within them, what drivers do we see for European and Asian equities and where are the opportunities.

Learning Outcomes – to demonstrate an understanding of:

  • The possible drivers and structural shifts to consider when asset allocating and where we’re allocating in the 2021 SAA
  • Where the value is in Fixed Income market while rates and yields remain so low and whether the flood of support from governments and central banks could stoke inflation for consumers
  • What next for Commercial Property, where do we see threats and opportunities within this asset class
  • Where the opportunities in equity markets are and what are the main drivers for diversification in equity allocations are
Featured Video

Understanding the Investment Paradox

30 minutes

Featured Video

Understanding the Investment Paradox

30 minutes

Featured Video

Understanding the Investment Paradox

30 minutes

Featured Video

Understanding the Investment Paradox

30 minutes

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

Long Term Investment Strategy

1. The global economic centre of gravity is rapidly moving…

a. West

b. East

c. Unchanged

d. North

 
Fixed Income

2. What do real yields in emerging markets versus developed markets mean for bond investors?

a. Real yields in emerging markets are generally depressed compared to developed market real yields, making them potentially attractive from a valuation perspective

b. Real yields in emerging markets are generally depressed compared to developed market real yields, making them unattractive from a valuation perspective

c. Real yields in emerging markets are generally elevated compared to developed market real yields, making them potentially attractive from a valuation perspective

d. Real yields in emerging markets are generally elevated compared to developed market real yields, making them unattractive from a valuation perspective

 
Property

3. Where do we seem the main opportunities in real estate as we move through 2020?

a. Retail in prime locations

b. Office sector in well-connected cities

c. Value sectors such as hospitality, student, residential

d. All of the above

 

4. What is one of the main advantages of real estate from an ESG perspective?

a. There are none as it’s very difficult to incorporate ESG factors

b. Control – ownership gives you the ability to control ESG factors

c. Exclusion – you can simply exclude tenants that don’t meet a certain criteria

d. Cost – incorporating ESG in real estate is very cost effective

 

Equities

5. What do M&G believe are the benefits of investing in internal managers?

a. Ability to carry out greater depth of Investment Due Diligence

b. Ability for managers to focus on long-terms performance numbers rather than the next quarter

c. Ability to tailor the funds to suit the M&G manager skillset and the multi-asset fund requirement

d. All of the above

 

6. How are M&G trying to integrate ESG into their investment process?

a. Some negative screening but with a focus on integrating ESG factors and risks into their investment process and engaging with portfolio companies on ESG issues

b. Exclusion of perceived ‘sin-sectors’ only

c. Only investing in the highest quality ESG names and sacrificing investment returns

d. Only incorporating external data provider views such as MSCI

 

To claim your CPD certificate, click here.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.