DIY Investor Magazine
|
June 2017
11
LATIN AMERICA
Richard Prosser, chairman of BlackRock Latin American
Income, foresees falling real interest rates in the region
and sees Trump’s anti-free-trade rhetoric as a stimulant
to new trade relationships with other parts of the world.
The managers of the fund also think earnings could rise
on the back more stringent cost control.
BIOTECHNOLOGY AND HEALTHCARE
SV Life Sciences, managers of International
Biotechnology Trust, think merger and acquisition (M&A)
activity, aided by substantial cash balances accruing
at large pharmaceutical and biotechnology companies,
could help a portfolio of smaller companies ripe for
acquisition.
DEBT
William Frewen, chairman of NB Global Floating Rate
Income, expects further rate rises in 2017 but says his
investment managers believe defaults will stay below
historical levels. Paul Smith, manager of the income
proportion of Acorn Income’s portfolio, has a concern
that the Federal Reserve may be forced to raise rates
faster than they had anticipated and is looking to
alternative strategies to provide some diversification
from traditional fixed income investments.
Blackstone/GSO Loan Financing favour senior loans
which they believe are well positioned, providing
investors with yield and relative performance stability.
The chairman of VPC Speciality Lending, Andrew
Adcock, notes some hiccups in online lending growth
in 2016 but says that the long term structural growth
drivers for online lending remain as strong as ever. P2P
Global Investments says that secured and unsecured
SME lending in the UK and Europe offers an attractive
risk return profile.
PROPERTY
Andrew Wilson, chairman of UK Commercial Property,
says commercial UK real estate has many significant
benefits as an asset class, not least its ability to produce
an attractive and sustainable income stream against a
backdrop of limited speculative development, generally
low supply and modest gearing levels compared to
previous cycles.
Will Fulton, manager of that fund, makes the same
point and prefers industrial and high quality retail
over London offices. Chris Russell, chairman of F&C
Commercial Property, says that the occupational
market may face headwinds from business rates, the
imposition of a National Living Wage and higher import
costs in the coming year. Richard Kirby, the manager of
that fund, expects a period of positive single digit total
return performance, driven by income in an uncertain
environment.
He favours quality industrial and distribution, Central
London retail and alternative assets.
Empiric Student Property give us a detailed rundown
of the student property market in the UK. Redefine
International, talking about the potential impact of Brexit
on City offices, points out that London now employs
more people in the information and communications
sector than it does in the traditional finance and
insurance sectors.
Taliesin talk us through the Berlin residential property
market, which appears to have an increasing supply/
demand imbalance.
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