Insights

Much has been written in recent weeks on the ill-fated UK ‘fiscal event’ set out on 23 September and its impact on the value of sterling and the UK fixed interest markets. This article looks at how CCLA has managed the £3.5 billion of investments within its three Deposit Funds through this ‘once in a generation’ market turbulence and how the Funds will invest over the coming months.

The rise of economic nationalism, driven in no small part by an increasingly populist agenda in many countries and regions across the globe, has combined with disruptions arising from the Covid-19 pandemic to herald predictions that we have reached the end of a prolonged period of globalisation, which has been the predominant global economic theme for much of the period since 1945. Commentators are now asserting that we have now entered a period of deglobalisation, namely the swift reshoring of production and the shortening of supply chains.

The Bank of England’s Monetary Policy Committee (MPC) has voted to increase its Official Bank Rate by 0.50% to 1.75% – its highest rate since 2008. The Bank’s move was the biggest single increase since 1995, also marking the sixth consecutive rate hike since last December.

Ensuring healthy lives and promoting wellbeing is important to building prosperous societies, because healthy people are the foundation of healthy economies. CCLA joined a coalition of investors to urge the government to review its national food strategy, because we believe that affordable and sustainable food systems are fundamental to support healthy communities.