The agreement, announced yesterday by BPCE — Natixis IM’s parent company — and Generali, will see the launch of an asset manager with €1.9trn (£1.6trn) assets under management.

The parent companies will own 50% each of the combined business, with balanced governance and control rights.

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BPCE CEO Nicolas Namias will chair the board of the new entity, with Generali CEO Philippe Donnet as vice chair.

Meanwhile, current Generali Investments Holding CIO Woody Bradford would serve as CEO, with Natixis IM CEO Philippe Setbon as deputy CEO.

Subject to regulatory approval, the merger is expected to complete by early 2026.

Both parties cited critical scale, an enhanced offering in private assets to meet growing demand, and strengthened global distribution capabilities as some of the factors behind the deal.

See also: BlackRock enters pact with Saba to ‘not seek to control or influence the board’

Thomson has been on the board since the company launched in 2018, and served as chair of the audit committee. This position will be taken on by Margaret Stephens, and the trust said the search for a new non-executive director is “at an advanced stage”.

See also: Japanese small caps: Too many cooks

“The board would like to express its gratitude to Katya [Thomson] for her invaluable contributions to the company since its launch in October 2018. Her guidance as chair of the Audit Committee has been greatly appreciated.  We extend our best wishes to her for the future,” the board stated in a stock exchange announcement.

See also: PA Live Slicing The Regional Pie

AVI Japan Opportunity is currently trading at a 3.4% discount to NAV, and has a share price total return of 31.4% over the last year, compared to a sector average 9.1%, according to the AIC. Over the past three years, it has returned 41% while the sector has lost 8%.

The First Trust Vest U.S. Equity Buffer UCITS ETF – January will aim to match the price return of the S&P 500 up to a predetermined upside cap, while providing a 10% downside cushion through a built-in buffer mechanism.

The cap and buffer will be reset after a year in January 2026 to match market conditions. The ETF charges a 0.85% total expense ratio.

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Rupert Haddon, managing director at First Trust Global Portfolios, said: “FJAN represents the first ETF in our quarterly series of scheduled UCITS ETFs for our S&P 500 Target Outcome 10% buffer suite.

“In today’s volatile market environment, we believe FJAN offers a compelling solution for investors seeking exposure to leading S&P 500 companies while managing downside risk.”

The strategy will act as a complement to more traditional portfolios, and begins with near $100m. It will invest across the liquid multi-asset universe, taking long and short positions.

See also: BlackRock enters pact with Saba to ‘not seek to control or influence the board’

LOIM’s DOM Global Macro team is made up of five people and led by Valentin Petrescou and Didier Anthamatten. The team collectively transferred from Credit Suisse to LOIM, where they managed two multi-asset investment strategies.

Jean-Pascal Porcherot, co-head of LOIM, said: “At LOIM, we have deep partnerships with our clients and help them to precisely manage the risks and opportunities that arise across market cycles.

“With the launch of DOM Global Macro, clients benefit from the team’s extensive expertise managing multi-asset macro strategies that target absolute returns. The launch is an important milestone in strengthening LOIM’s alternatives business, as we expand our range of differentiated strategies that seek to create sustainable value for clients.”

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Instead, the portfolios will operate on a combination of equity, cash and bond allocations. Particularly, this year will see a lift in non-GBP equities and an uptick in GBP cash & bonds.

Ryan Hughes (pictured), managing director at AJ Bell Investments, told Portfolio Adviser: “We’ve had a very good look at this alternatives space and the types of assets that we consider to be investable, and ultimately, we concluded they are not adding to the portfolios, and therefore they shouldn’t be there.

“We understand there are lots of people out there that use different flavours of alternatives, but we have a very particular approach to that has to be available actively and passively, which rules out a lot. The simple, transparent, low cost, that rules out a lot more. We’ve also seen a lot of this stuff go very wrong over the years. It’s great while it works, and then it doesn’t. (It’s) in your portfolio to provide you the protection when your equities aren’t doing so well, and the alternative should step in, but in reality, it just doesn’t work like that.”

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Where, then, will the team find their diversifiers in 2025? In this case, the simple answer is the right one to the AJ Bell team.

“It’s nice and straightforward. It’s cash. You can get a return of 5% today from money market funds and cash. Do you actually need to look to alternatives to provide that low risk, uncorrelated return when you have got a great standing start from a very low risk asset?” Hughes said.

“People generally have been reaching into the alternative space, either when there’s been very low returns on cash available, or when they got concerned about fixed interest. At the moment, only one of those is probably true, which is the risk around fixed interest and where we go from here with inflation. But if you’ve got a standing start of roughly 5% from your cash for a low risk investor, bag the easy money. Over the years, a lot of people try and over-complicate it. Sometimes the right answer is staring you in the face, and it’s the simplest one.”

In the last financial year, AJ Bell Investments grew by 45% to £6.8bn in assets under management, including £1.5bn in inflows. Its yearly strategic asset allocation begins by using a mean variance optimiser to create portfolios near the efficient frontier. The AJ Bell team then makes tactical adjustments to account for market context.

The MPS options include both active and passive versions, as well as a blended version. Notably, 2024 saw the active MPS outperform the passive version for the second year in a row.

“I’m not sitting here saying I’m beating the drum for active management,” Hughes said. “But I think what it is showing is that there is pockets of the market where active management can do well and that careful manager selection can be beneficial to that.”

US equities

AJ Bell Investments will up its allocation to US equities across all risk profiles, with the highest increase to its risk level three at 11%. In overall allocation, risk level one will have the smallest holding in US equities at 12%, with the highest at risk level four with 25%.

The decision is a reversal from 2024’s strategic asset allocation, where the team opted to take down the allocations to US equities. However, across the last year, the S&P 500 continued to climb over 26%.

As AJ Bell increases its allocation however, it proceeds with guardrails. It will introduce equal-weight products instead of simply market-cap products to protect against some of the concentration risks in the market.

James Flintoft, head of investment solutions, said: “We’re bringing in the equal weight to cushion that allocation, to make sure we’ve got the right time for diversification. The concentration is at a record high. Who knows how far it’s going to go? If you look at the top 20, that’s now 40% of the index, the top 10 is 37%, and the top three is over 20%.”

China allocation

Following the macroeconomic conditions of the past few years, the team also took a closer look at how China should play into its portfolio, not just in its allocation, but how it is viewed as an asset class.

Previously, China was placed within AJ Bell’s emerging markets and Asia Pacific ex-Japan categorisations. But in recent years, it has become clear to the team that the category is not necessarily reflective of where China sits. Instead, it has now been positioned as its own asset allocation.

While the move to separate China has been on the minds of the team for a while, it was not made possible until more recently as ETF products diversified. Now, the team feels there are enough individual China products, as well as emerging markets ex-Japan and ex-China products, to allow them to sit independently.

“This has been a really hot topic over the last couple of years that people want flexibility in their portfolios to dial up and down China exposure. We don’t have at this point a really specific view on China, but we’ve got the lever there should we need it. So we’ve put that as a standalone holding, whereas previously, if we wanted to do something very specific with China, it was very difficult to do,” Flintoft said.

Bonds

In the team’s 2024 allocation, the team found frustration in the performance of bonds, particularly when it came to the low risk end and the performance of US treasuries as markets went through a series of re-pricings on interest rates.

See also: ‘Strap in’: Trump returns to questions on tariffs and inflation

“That’s something that we can sit here today and say, ‘hands up, a year ago, we got that wrong’,” Hughes said.

“We thought that there would be more interest rate cuts than there have been, and I don’t think we’re alone in that position. We had lots of conversations with managers saying that they expected plenty of rate cuts, and they haven’t come through. That’s definitely been painful for us at the lower risk end.”

The surprisingly sticky inflation and higher interest rates have led AJ Bell to cut a significant amount of its exposure to non-GBP cash & bonds. The lowest level of risk now has an exposure of just 9% to the sector, with the highest risk having none.

Last year also presented surprises in the success of high yield, which AJ Bell had decreased its exposure to in 2024.

“We didn’t have enough high yield. We took high yield down a little bit last year and allocated that to investment grade. We were concerned about spread levels last year, because we thought they were pretty tight. They just got a whole lot tighter,” Hughes said.

Looking ahead

For 2025, the AJ Bell team predicts an average case one-year return of 5% for its lowest risk portfolio, and 7.5% for its highest risk portfolio. But the team emphasises that while it’s pleasant to have a high return, it is also important to deliver that return in the right way, and in a comfortable way for investors.

“We’ve all been on plenty of flights, and there are certain people that when the captain says fasten your seat belt signs, they absolutely panic. I’m one that grips the seat and the knuckles go white and I can’t stand any kind of turbulence. There are other people that are blissfully unaware and just sleep all the way through it,” Hughes said.

“That is exactly the same with markets. What we need to make sure is that those people that are in our lower risk funds, that want to grip the seat every time there’s a bit of market noise, they actually can be comfortable and still reach their destination. To the same point, we need to make sure that those people that are happy to sleep through all those lumps and bumps while the seat belt sign is on still reach the destination have the right kind of experience too.”

BlackRock gained assurances from Saba that it would “not engage in any takeover offer”, “seek to control or influence the board”, or “seek to change the composition of the board”.

Trusts that made this pact with Saba include BlackRock’s World Mining, Smaller Companies, Energy and Resources Income, and American Income trusts. It will be in effect until 31 August 2027.

BlackRock reached these agreements despite noting that “Saba does not hold any interests in the issued share capital” of any trust.

Yet it may be an effort to protect itself in case Saba attempts to oust and replace its boards, as it has attempted with Keystone Positive Change, Baillie Gifford US Growth, Edinburgh Worldwide, Henderson Opportunities, and CQS Natural Resources Growth and Income, Herald, and European Smaller Companies.

Each of these trusts has urged shareholders to vote against Saba’s proposals, expressing that they are self-serving and are seeking to take effective control of each company.

Keystone’s chair Karen Brade said she was “appalled by Saba’s actions and conduct”.

“Be under no illusion – we believe this US hedge fund manager is acting opportunistically, seeking to seize control of the board without a controlling shareholding, to pursue its own agenda,” she added.

The Association of Investment Companies (AIC) and Edison have gone a step further, raising their concerns directly with the Financial Conduct Authority (FCA) that Saba’s plans are in breach of the UK Corporate Governance Code.

They argue that Saba’s appointment of its own candidates would break rules protecting board independence.

In its governance code, the City watchdog deems a director biased if they “represent a significant shareholder” or have “a material business relationship with the company” – two factors that could work against Saba, considering it owns between 19% to 29% of the shares in each trust.

Analysts at Edison added: “A scenario in which an activist hedge fund is a significant shareholder driving the replacement of the current boards with its proposed directors, and subsequently appointed as the trust’s investment manager, creates a conflict of interest, especially when setting the terms of the management agreement.”

Jewell spent 15 years with RBC BlueBay, where he began as head of high yield trading before becoming a portfolio manager and later a partner of the firm. His career included oversight of a team of 30 and $18bn (£14.7bn) in assets across high yield, leveraged loan, CLOs and multi asset credit.

See also: PA Live A World Of Higher Inflation 2025

In his new position, Jewell be part of the developed markets specialist credit team, and partner with Darpan Harar on Multi Asset Credit and Global Total Return Credit. The team will work to expand the firm’s developed market specialist credit platform.

Mimi Ferrini, co-chief investment officer at Ninety One, said: “Justin brings with him extensive experience, leadership, expertise, and an outstanding track record.  He will play a crucial role in the development and expansion of our developed markets specialist credit platform while delivering long-term value to our clients.

“Ninety One’s credit offering is differentiated through its global and unconstrained universe and its highly dynamic investment approach. We are committed to helping investors capture the full diversification benefits and defensive portfolio properties that global credit markets have to offer.”

He spent nine years at Allianz and has previously held sales roles at Canada Life Investments and Russell Investments.

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Artemis has also appointed Joe Wallace and Freddie Morrissey as sales support executives, who join from Janus Henderson and Muzinich, respectively. All three will be based in Artemis’s London office.

Couzens said: “[Artemis] has a very strong range of distinctive, actively managed funds in core areas for many clients.

“Concentration risk is a key concern of many investors, so we’re seeing a trend of mitigating that risk with active strategies that have proven themselves through various market cycles.”

He joins from Goldman Sachs Asset Management after 12 years, where he was most recently head of UK wealth distribution.

In the new role, Peters will focus on developing relationships with UK wealth managers and advisers.

Honor Solomon, CEO of EMEA at AllianceBernstein, said: “The UK continues to be one of the cornerstone markets in EMEA with a sophisticated client base with a growing interest across a wide range of products and solutions.

“In the current market environment, investors expect advice based on real investment expertise and broad-based knowledge. With Adam we have found an expert who has the right technical understanding as well as a consistent focus on distribution. I am delighted to welcome him to the team.”

The iShares AI Innovation Active UCITS ETF is a relatively concentrated “best ideas” portfolio of 20-40 stocks, targeting exposure across the entire AI value chain.

It follows the same investment strategy as the BGF AI Innovation fund, which launched in December 2024. The strategy, which charges a 0.73% Total Expense Ratio, will be managed by Tony Kim and Reid Menge.

The firm has also announced the launch of the iShares World Equity Factor Rotation UCITS ETF. The strategy aims to outperform the broad global equity market by tactically allocating to “historically rewarded” factors.

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The strategy will house between 150-250 holdings and charges a 0.30% TER. It is managed by Philip Hodges, PhD, BlackRock’s head of investments for factors and senior portfolio manager He Ren.

Jane Sloan, EMEA head of global product solutions at BlackRock, said: “With the addition of these funds, BlackRock is able to offer European investors active ETFs across both systematic and fundamental investment strategies.

“The launch of an active ETF as part of our existing AI suite provides clients the choice to tailor their exposure using the wrappers that work best for them.”

Despite a year of analysis of what a second Trump term will mean for markets, the only market consensus seems to be that the future is unclear. Trump is a tricky test subject: the claims he made during his first campaign turned out to be more bargaining chips than promises, and a revolving door of cabinet members made for constant adjustments in policy. And a second set of questions come in how these policies will actually impact markets once put in motion.

This time around, Trump has kept to many of his favourite platitudes, including stricter immigration policies and a barrage of tariffs, but has also aligned himself with the tech world, specifically with the appointment of Elon Musk to head the new Department of Government Efficiency. He also faces an ongoing war in Ukraine that has shaped the European economy, which he claimed he would end before even taking the Oval Office. This promise has proved to be untrue.

See also: Will Trump’s return to the White House derail the green agenda?

While Trump works as an erratic force in the Oval Office, markets found more stability in his selection for Treasury, investor and hedge fund manager Scott Bessent.

Russ Mould, investment director at AJ Bell, said: “Markets are eagerly awaiting Trump’s first batch of executive orders as this will provide clarity on the lay of the land. Immigration, energy and trade will be high up the list and, as always, the devil will be in the detail. Trump has had a lot to say on these issues but he also has a reputation of not always following what he’s promised to do to the letter.”

Tariff policies

Tariffs have been the center of attention in the lead-up to Trump’s second presidency, as markets attempt to understand how literally to interpret his claims. Trump has claimed he will put in place tariffs between 10% and 20% for all imports to the US, and 60% to 100% for imports from China.

“Markets want to know which countries and industry sectors will be targeted and the relevant tariff rates to price in any risks or opportunities to equities, currencies and bonds around the world,” Mould said.

“Trump is likely to have a much greater influence on markets than Joe Biden due to his punchier policies and unpredictable nature. Investors should strap themselves in, as this situation implies much greater swings up and down for share prices, currencies and other asset classes.

See also: PA Live A World Of Higher Inflation 2025

Patrick O’Donnell, senior investment strategist at Omnis Investments, said in addition to the obvious effects on China, policy could be particularly punchy for Europe.

“The initial emphasis is going to be on China but also on Europe. Recent sound bites from the administration are floating the idea of a middle ground between a broad-based tariff on everything and selective tariffs on Chinese manufactured goods. This is softer than what we heard on the campaign trail, but the precise details will matter for investments as we move through 2025.”

The US will not be immune to the tariff policies it puts in place, with many economists believing it will lead to a further increase in the price of goods for US consumers. But Cathie Wood, CEO of ARK Invest, sees an alternative if the tariffs are handled with care.

“Uncertainty during the transition could add to the wall of worry that has kept the markets on edge recently. Will tariffs trigger another bout with inflation? We think not: instead, those tariffs should be selective and incremental, their discrete effects ultimately displaced overwhelmingly by tax cuts, deregulation, and dollar appreciation,” Wood said.

“Indeed, we believe the market is likely to discount a successful Trump Administration, which could turn out to be one of the most successful administrations since the Reagan Revolution.”

The risk of inflation

One of the longer-term concerns that comes with Trump’s term is the inflationary nature of many of his policies. In addition to the possibility of higher prices due to tariffs, strict immigration policy could have an inflationary effect by driving up the cost of labour. The Federal Reserve has reevaluated its easing plans for 2025 in light of the possible policies, and treasury yields sit at a 14-month high.

The economic impacts for the US will also become more clear as tax policy unfurls. But O’Donnell says much of this will come down to what can be passed in Congress, which is less unified than in Trump’s first term.

See also: How will Trump’s tariffs impact markets?

“An extension of the Trump 1.0 tax cuts is widely expected but the politics this time are much more difficult than in the first administration which may make it more difficult to pass further tax cuts. The majority in the House of Representatives is much thinner this time round and the members tend to be less disciplined than in the Senate,” O’Donnell said.

“Overall, uncertainty is likely to remain high over the next year and whilst we think the net impact of the new policy initiatives are likely to be well received by markets, the risks are elevated.”

If the policies are passed, Wood said the equity market could be put in a comfortable position.

“Trump Administration is likely to convince Congress not only to preserve the tax cuts scheduled to expire by year-end, but also to cut other business and individual tax rates and deregulate industries in which large corporations have armed lobbyists and benefitted from “regulatory capture” at the expense of small- to mid-sized companies,” Wood said.

“As a result, the bull market in equities is likely to broaden out from just a few cash-rich, large cap stocks to a broad swath of stocks that have been hampered by the supply shocks, the record-breaking burst in interest rates, and the rolling recession that have characterized the last four years.”

Is it time to make decisions?

The lead-up to inauguration day has been long, first with uncertainty of who would be president, and then with uncertainty of what that presidency would bring. But just because the day has arrived, not all believe it is time for major changes.

While much policy is squeezed into the first 100 days of presidency while momentum is high, another 1,361 days will still remain. And the advent of Trump is hardly the only influence on markets across the next four years.

“This economic cycle is relatively long in the tooth, there is a relatively structural large fiscal deficit, inflation risks are still present, economic activity outside of the US appears subdued with political issues in Europe. We expect markets to remain volatile, and not just because of social media posts from the oval office,” O’Donnell said.

Nina Stanojevic, senior investment specialist at St. James’s Place, also reminds that changes in political leaders have not necessarily been the bellwether for economic change in the past.

“With the presidential inauguration taking place today, we recognise the significance of this transition and its potential impact on the markets and economy,” Stanojevic.

“Despite the uncertainty surrounding the future direction of the new administration, investors should avoid making any immediate portfolio adjustments in response to this political development. Historically, markets have shown resilience across political transitions. Reacting to short-term political shifts introduces unnecessary risk and often undermines long-term returns. Investors should remain disciplined and avoid reactionary moves that could detract from sustained growth.”

The group’s chief executive Tom Carroll said Odds would be “an instrumental part of shaping and delivering [Rathbone’s] growth strategy, focusing on diversifying and expanding our fund range”.

See also: PA Live Slicing The Regional Pie 2025

Odds joins following a two-year stint as head of client services at Atlas Infrastructure Partners.

Prior to this she worked at larger firms such as Jupiter Asset Management, where Odds spent five years firstly as senior product development manager and latterly as head of UK client services.

See also: Brooks Macdonald and Rathbones make distribution hires

Carroll highlighted Odds’ “extensive expertise in evolving the client propositions for asset managers of all sizes” as a key factor in her appointment.