The Hang Seng index has “performed better” than S&P 500 so far this year, according to Legal & General Investment Management (LGIM) chief investment officer Sonja Laud.
Speaking yesterday (30 September) at LGIM’s Autumn Horizons Event, Laud explained how the market-capitalisation-weighted stock market index in Hong Kong had outdone the US stock market tracking index.
She also added that investors have seen “more weakness” in the Magnificent Seven, a group of highly performing US stocks.
The Magnificent Seven consists of Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla.
She described growth as “reasonable” but inflation is on track with central banks.
Laud also predicts a mediocre rest of the year in terms of markets, with a “slight boost” next year.
In regards to the upcoming US election on November 5, Laud believes the market will see a bigger impact if the Democrats or Republicans take control of both the House of Representatives and the Senate.
The November election still has the ability “to shift the narrative”, but there is an assumption that Trump will continue his trend of tax cuts if he wins the election.
Focusing more on the UK, Laud said she does not envy Chancellor Rachel Reeves, especially since a new government’s first budget receives a lot of scrutiny.
She added that, overall, “the better the UK economy is doing the more interesting the investment story will be”.
In April 2024, SimplyBiz announced that LGIM’s model portfolio service would be the latest addition to its risk-controlled investment solutions range.
This helps advisers identify the best solution to meet clients’ investment objectives in line with their risk profile by aligning the investment solution to the advice and research process within the Engage system.
SimplyBiz director of distribution services Rodger Baillie said: “LGIM is one of the biggest investment managers operating in the multi-asset market today and is renowned for its focused approach to supporting both advisers and consumers.”
Laud joined LGIM in 2019 from Fidelity International where she was head of equity. Prior to that, she worked at Barings where she was manager of two global multi-asset funds, and Schroders where she was manager of five global equity funds.