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Julian Fosh: Why R&D has boosted UK GDP

The official size of the UK economy has been revised upwards but this will not, unfortunately, lead to an increase in your bank balance. In fact the revision has been a key factor in the EU’s demand for an additional £1.7bn surcharge which will burden UK taxpayers unless David Cameron, mindful of UKIP’s progress, is able to successfully fight the demand. However, for us it is further recognition of the growing role that intangible assets have to play in the generation of wealth. The upward revision reflects the incorporation of a number of new factors which include research & development (R&D) spending, a key part of the formation of intangible assets such as intellectual property (IP).

John Husselbee, Multi-Manager: Eyes wide open

In recent months I have often referred to the investor complacency indicated by low levels of market volatility as representing one of the two biggest investment risks in the short to medium term, alongside bond market overvaluation. Given the spike in volatility over the past few weeks it seems only sensible to revisit and reassess this point of view.

Stephen Bailey, Macro-Thematic: ‘Tax inversion’ should not distract from strong pharma fundamentals

This week has presented an opportunity to increase our Funds’ exposure to global healthcare, already the largest of our macro-themes. In addition to the wider market sell-off, shares in pharmaceuticals sector have also been affected by the fallout from AbbVie’s decision to pull out of its takeover of Shire.

The potential for tax inversions has been a bit of a sideshow in our opinion, creating a lot of noise and detracting from the real fundamental themes affecting the pharmaceuticals sector - the profound shift in political attitude towards the sector, the recognition of the industry's vital importance in the protection of ever more fragile global health, coupled with the industry's emergence from the much-publicised 'patent cliff' and the improving efficiency and efficacy within R&D processes.

Stephen Bailey, Macro-Thematic: ‘Tax inversion’ should not distract from strong pharma fundamentals

This week has presented an opportunity to increase our Funds’ exposure to global healthcare, already the largest of our macro-themes. In addition to the wider market sell-off, shares in pharmaceuticals sector have also been affected by the fallout from AbbVie’s decision to pull out of its takeover of Shire.

The potential for tax inversions has been a bit of a sideshow in our opinion, creating a lot of noise and detracting from the real fundamental themes affecting the pharmaceuticals sector - the profound shift in political attitude towards the sector, the recognition of the industry's vital importance in the protection of ever more fragile global health, coupled with the industry's emergence from the much-publicised 'patent cliff' and the improving efficiency and efficacy within R&D processes.

Disclaimer

Any opinions expressed should not be construed as advice for investment in any [product or] security mentioned or which may form the underlying content of any topics discussed in this blog.  The information and opinions provided in this blog take no account of the investors’ individual circumstances and should not be taken as specific advice on the merits of any investment decision.   Any opinions or information provided has been based on sources we believe to be reliable at the time of this blog’s preparation: no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of such information.  Neither Liontrust, nor any of its partners, employees, representatives or agents accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of our research or its contents.

Liontrust, its partners and/or employees may have had, have or will have positions in the securities (or related financial instruments) which are those referred to, or those underlying the content discussed in this blog.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a regulated investment advisor or licensed stock broker before investing.

Shares in companies referred to may be relatively illiquid and hard to trade, therefore riskier than other investments and there could be a large bid/offer spread, so if you need to sell soon after you’ve bought, you might get less back than you paid. This can make them riskier than other investments.