ECB policy strengthens investment case for value & banks

By Rob Burnett, head of European Equities at Neptune

The ECB delivered a strong package in its latest policy announcement that managed to find the right balance between supporting the economy and not endangering the banking system.

The EU banking system is very sensitive to negative rates and, if the ECB were to have cut rates by too much, it could have created systemic stress. The market was expecting cuts of around 12-14bps and so the 10bp cut in the deposit rate was slightly easier on the banks than anticipated. More importantly, all the other measures announced were supportive of banking profitability.

Read full article:

Important Information

Investment risks

This fund may have a high volatility rating and past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and your clients may not get back the original amount invested. References to specific sectors are for illustration purposes only and should not be taken as a solicitation to buy or sell these securities. Neptune funds are not tied to replicating a benchmark and holdings can therefore vary from those in the index quoted. For this reason the comparison index should be used for reference only.

Recommended

Sign-Signing-Letter-Contract-Business-700.jpg

Your Views: Imperative to maintain high-LTV market once Help to Buy 2 is over

Imperative to maintain high-LTV market once Help to Buy 2 is over The latest completion statistics for the Help to Buy 2 scheme were released by HM Treasury this month and, if you take an overall picture of the scheme from its October 2013 launch to the end of 2015, it seems a positive view. […]

Paper-People-Cardboard-Cutout-700.jpg

BBA brings in bereavement code for members

The British Bankers’ Association is bringing in a code of practice for its members to help support bereaved families. The trade body says its new bereavement principles will help cut bureaucracy for relatives of its personal banking customers after a death and provide a more sensitive service to them. The Building Societies Association’s members have […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

Investec launches private banking mortgage

Investec Private Banking is rolling its Professional and £Million Plus+ mortgages into a new Investec Private Banking Mortgage. The new mortgage covers loans from £250,000 up to £10m, or £5m on fixed rates, to a maximum of 85 per cent loan-to-value, though this can go higher on request. The mortgage needs a minimum income of […]

Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.

Newsletter

News and expert analysis straight to your inbox

Sign up