DIY Investor Magazine
|
June 2017
10
THE BIG PICTURE: MACRO SUMMARY FROM
QUOTED DATA
Every month here at QuotedData, the investment trust
analysts collate the insights on markets and economics
taken from comments made by chairmen and managers
of investment companies investing across the globe.
We organise these to highlight what the sector’s trusts
believe are the factors relevant to performance in their
particular geography or industry sector.
In the UK, caution is the watchword as the thinking is
that political influences may heighten volatility. In Asia,
managers are looking for buying opportunities that
might be created by any short-term setback in markets.
European commentators are upbeat as are those
in Latin America (although in the latter region, the
comments were made before Brazilian president,
Temer’s, latest corruption allegations).
UNITED KINGDOM
Helen Green, chairman of Acorn Income Fund, thinks
a degree of caution is required given many economic
and policy unknowns in the UK, Europe and the US.
Tristan Chapple, manager of Aurora, talks about Brexit,
where he thinks Britain will eventually make a decent fist
of things outside the EU, and housebuilding, where is
questions the likely impact of the UK Government White
Paper on the industry.
Ian Barby, chairman of Invesco Perpetual UK Smaller
Companies, is cautiously optimistic, looking to President
Trump’s policies to support short-term growth.
The manager of that fund sees the prospect of
increased volatility on the back of heightened political
uncertainty. Chris Kinder, manager of Threadneedle
UK Select, cites a number of reasons to be cautious
including higher US interest rates, falling real wage
growth in the UK and politics.
Alex Wright, manager of Fidelity Special Values, sees
a chance of rising interest rates proving favourable for
value investors.
ASIA
James Willis, chairman of Pacific Assets Trust, says
markets have been rising on a background that is far
from benign. However, he believes that Asian countries
have growth prospects that well exceed that of the UK.
Sarah Bates, chairman of Witan Pacific, strikes a similar
note, mentioning positive steps such as a growing
Asian middle class, improving Japanese corporate
governance and Indian demonetisation.
Nitin Bajaj, manager of Fidelity Asia, doesn’t want to go
on record as predicting a bear market but believes that,
if it happened, it would create opportunities to make
money.
James Ferguson, chairman of Scottish Oriental Smaller
Companies, says that they are finding opportunities in
India in particular but lists a number of reasons to be
cautious.
Mike Kerley, manager of Henderson Far East Income,
also lists a number of risks to expectations but, much
like Nitin Baja, says he is positioned to take advantage
of a set-back in markets.
EUROPE
The chairman (Eric Sanderson) and managers (Vincent
Devlin and Sam Vecht) of BlackRock Greater European
think the prospects for Europe are much brighter this
year than last although there is scope for politically
inspired volatility.
