Investor Letters
Rathbones
- Investment Insights Global markets face renewed inflation pressure from the Iran War, higher bond yields and volatile AI shares, while Rathbones argues that diversification remains essential. The industrials case rests on a manufacturing recovery, AI infrastructure, power-grid investment, semiconductor capacity and more local production, despite tariffs and elevated energy costs. October 2026 SBGSF $143BSIEGY $237B
- Investment Insights Rathbones argues that AI infrastructure suppliers, from chips and networking to power, cooling and construction, offer broader exposure to the investment boom than frontier-model developers. It avoids highly leveraged instruments and longer-dated government bonds, citing fiscal risks, while expecting AI spending to keep near-term inflation and interest rates elevated. Q3 2026 GOOGL $3.5T
- Investment Insights Rathbones argues that unresolved conflict, AI capital spending and cautious central banks warrant diversification while long-term AI adoption continues. It favours established defence contractors such as Thales and RTX over commoditised drone producers, and presses companies to strengthen cyber resilience through board oversight, partner scrutiny and AI-enabled defences. August 2026 AMZN $2.9TGOOGL $3.5TMETA $1.6T
- Investment Insights Rathbones argues that AI data-centre spending and strong corporate earnings support risk assets despite the Iran conflict and higher-rate expectations. It favours the semiconductor beneficiaries of AI capital expenditure, sees UK housing as structurally less attractive, and expects media owners with valuable intellectual property to benefit from GenAI only if copyright protections hold. Q2 2026 0QZO
