Thought Leadership

Investment Horizons: Issue 5

Welcome to the fifth edition of Investment Horizons, our regular look at the vital themes for institutional investors.


Does “Big Food” face a showdown over sugar?

The rise in sugar consumption and its link with ill health could create serious problems for the food and beverage sector. There are close parallels with the issues faced by the tobacco industry, and that could spell bad news for investors.

The case for small caps in a world of disruption and deflation

The underperformance of small caps has prompted suggestions that the traditional arguments in their favour no longer hold. But in the current economic circumstances, we argue that small caps can bring unique characteristics to a wider investment portfolio.

Consistent returns are the key to better pensions

Financing retirement is one of the biggest problems faced by individuals. We’ve looked at more than 300 years of UK investment history and concluded that the best results come from minimising investment surprises, rather than maximising contribution levels.

Is inflation overstated?

Official measures of inflation are crucial to the smooth functioning of markets, but there is strong evidence to suggest that official benchmarks have consistently overstated the rise in the cost of living. This is likely to have serious ramifications for investors.

Primer: taking correlations out of the black box

We look at the shortcomings of correlation and suggest that overcoming them requires us to make some educated forecasts about what the future will be like and then to adjust our expectations accordingly.