There was yet another large turnout for the Canaccord Genuity Wealth Management (CGWM) Q4 Bitesize seminar at the Claremont Hotel on Wednesday 22 November 2017. The seminar focused on key current themes for investors and the implications of rising interest rates.

The CGWM Bitesize seminars provide business professionals with a convenient learning opportunity for which a CPD certificate is provided on request. CGWM holds an event every quarter, bringing high-calibre guest speakers to the island and reflecting their commitment to providing up-to-date industry insights to the Isle of Man. Staying informed in an industry that’s constantly shifting isn’t easy, but being aware of changes as they’re happening can keep you ahead of the curve.

CGWM Investment Director, Richard Stanley and Stockbroker, Stephen Meadows hosted the event as they welcomed guest speaker Alastair Mundy, Head of Value and Portfolio Manager at Investec Asset Management.

With central banks in the US and the UK indicating interest rates will continue to rise and QE reversed, the implications for asset classes and investors are profound. The hour-long seminar debated how financial markets may react in these circumstances.

Central banks, which have collectively amassed US$14.6tn worth of bonds on their balance sheets, are showing signs of a shift in policy. As they begin to reduce the balance sheet built up to save the economy from the financial crisis, interest rates are likely to rise.

Aside from government bonds rising interest rates may affect corporate bonds, high yield bonds, emerging market debt, property and equity.

Alastair Mundy pointed out that while nobody knows exactly how the market is going to react,  precious metals, which retain their value in times of inflation, may provide a very useful insurance policy if central banks lose their nerve when they start selling bonds and bond yields start to rise.

So, how should you invest in the current climate?

Investment Director of CGWM, Richard Stanley has a slightly different perspective and said: “Although it’s sensible to be cautious, you should invest in the same way you should always be investing - through diversification. This means building a portfolio made up of quality stocks and bonds that will pay you income through the ups and downs of the markets, regardless of where rates are headed.

“At CGWM, we are actively looking at equity opportunities in smaller European companies and Emerging Markets in the current climate”.
The team at CGWM would like to thank guest speaker, Alastair Mundy, for an insightful presentation and to all who braved the rain to attend.

The next Bitesize event will take place on February 9 2018. Further details will be released in the New Year. In the meantime, you can email cgwmiomcs@canaccord.com to be added to CGWM’s mailing list where you’ll be sent details of their events.

CGWM provide comprehensive wealth management solutions for private clients, charities and intermediaries through a full suite of services tailored to their clients’ needs. Contact them on 690100 to find out more.