Important themes for the rest of 2019
The first thing to mention is that we really look to invest in companies that have strong organic growth throughout the investment or business cycle. But really what is at the forefront of all investors minds at the moment is whether we're sliding into a global recession and we believe that global dividends as a style should do very well against this backdrop. If there is a coordinated response and we think that there will be from central banks in terms of reducing interest rates, etc. to try and stimulate activity. We believe our laser focus on growth as well should stand the fund in really good stead.
Which countries or sectors offer the best opportunities?
Well, we invest globally but where we're really seeing some very interesting opportunities is across Europe. The European complexes performed poorly, earnings growth is actually being quite slow compared to the US but the valuations now are extremely cheap and we can pick up some very interesting companies, particularly in expensive defensives that we think will do very well against this market backdrop.
Are any geopolitical factors affecting your outlook?
The escalating tensions between the US and China are of course no doubt a concern. We're trying to mitigate this by investing in companies that are able to share the escalating costs of higher tariffs by having strong relationships with their suppliers, but also to be able to pass on these higher tariffs or costs through pricing power in their products and services.
Regulatory information and risk warnings
Past performance is not a guide to future returns
The information provided should not be considered a recommendation to purchase or sell any particular strategy / fund / security. It should not be assumed that any of the security transactions discussed here were or will prove to be profitable.
The opinions contained in this recording are those of the named manager. They may not necessarily represent the views of other Martin Currie managers, strategies or funds. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice.
The information contained has been complied with considerable care to ensure its accuracy. However, no representation or warranty, express or implied, is made to its accuracy or completeness. Martin Currie has procured any research or analysis contained in this recording for its own use. It is provided to you only incidentally and any opinions expressed are subject to change without notice.