In the latest Pacific Multi-Asset Solutions Video Update, Matthew Lamb, CEO of Pacific Asset Management, is joined by Pacific’s Chief Investment Officer and Portfolio Manager, Will Bartleet, and Will Thompson, Chief Sustainability Officer and Portfolio Manager. Filmed on the day of Donald Trump’s inauguration as President of the United States, the team discusses the key market dynamics for 2025. From US equities and UK market performance to the impact of Trump’s policies and emerging market opportunities, they share insights on navigating the complex global investment landscape. The discussion also explores investment trusts, unitisation, and the importance of diversifying portfolios in an unpredictable environment.
Video 1: Q1 2025 Market Outlook
Introduction & Key Themes
The team provide an overview of the 2025 market landscape, reflecting on the strong performance of equities in 2024 and the opportunities and challenges ahead. They discuss portfolio positioning, with an overweight focus on equities and diversifying assets, alongside a cautious stance on fixed income. The session sets the stage for a year shaped by geopolitical events and economic resilience.
Video 2: Market Outlook Continued
Inflation and Interest Rates
The team delves into key themes of inflation and interest rates, analysing the Fed’s “higher for longer” narrative and its potential market implications. They explore the challenges central banks face in tackling persistent inflation and discuss portfolio strategies for navigating resilient economic growth and shifting interest rate expectations.
Video 3: The Impact of Donald Trump
US Equities in Focus
Donald Trump’s return to the presidency introduces a new layer of complexity to financial markets. The team examines the potential impact of his policies—including tariffs, tax cuts, and deregulation—on inflation, interest rates, and global trade. They also explore the dominance of US equities, which have been the clear winners over the past decade due to strong earnings growth and macroeconomic strength. While the US remains a key overweight in portfolios, the discussion considers whether its outperformance is sustainable given historically high valuations, and what factors might challenge its continued market leadership.
Video 4: UK Markets in Focus
Lessons from History
Drawing on over 300 years of UK market performance, the team explores the historical trends that have shaped UK equities. They discuss the challenges of the past 25 years, including high starting valuations, and identify potential opportunities for long-term investors in a market now offering a more attractive valuation backdrop.
Video 5: Emerging Markets and China
Opportunities Amidst Challenges
The team examines the potential of emerging markets, with a particular focus on China. They highlight the low valuations of Chinese technology companies, growing consumer spending, and structural changes that position these markets for strong performance. The discussion sheds light on why these regions remain a compelling opportunity for global investors.
Video 6: UK Investment Trusts
Plus the benefits of unitisation
The team explores the compelling opportunities within UK investment trusts, which have recently been trading at significant discounts to their net asset values. They discuss the structural factors behind these discounts and how investors can capitalise on mispricings to unlock value. The conversation also highlights the role of unitisation in making investment trusts more accessible and tradeable, particularly within Model Portfolio Services (MPS) on platforms. By leveraging unitised structures, investors can gain exposure to these opportunities while maintaining flexibility, liquidity, and efficient portfolio management in a platform-friendly format.
