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Samantha Gleave: How will ECB policy affect growth investors?

Ahead of the ECB’s March 2016 policy announcement, we take a look at the potential impact for growth investors, and outline how we are positioning the Liontrust European Growth Fund.

John Husselbee: Nick Williams, reading the markets

Barings’ Nick Williams is the latest in our series of interviewees for this column whose early life pointed in an entirely different direction to European small-cap equities.

Mark Williams: All eyes on China’s FX reserves

With panic seemingly arising at every data point coming out of China, it is important to analyse whether the country’s current issues represent steps on the path to economic Armageddon or an investment opportunity.

Patrick Cadell: Panic over China presents buying opportunity

We have examined and reassessed our conviction on the Liontrust GF Global Strategic Equity Fund’s large exposure to Hong Kong-listed Chinese companies (H-Shares), but we continue to draw the same conclusion: the market is currently gripped by utter panic, and fails to appreciate that the current slowdown is part of a carefully controlled effort to rebalance the Chinese economy for sustainable long-term growth. As such, it remains our view that the current dislocation between perception and reality is a buying opportunity, and in light of the significant risk/reward on offer, are we are willing to ride the volatility.

Julian Fosh: Oil’s well that ends well

Oil prices continue to hover around the mid-$30s, with several commentators suggesting current lows could last several years into the future. A prolonged period of oil price weakness could have major implications for global stock markets, especially in the UK where the oil & gas sector represents close to 11% of the FTSE All-Share by capitalisation. In the funds run according to our economic advantage process, we do not invest in exploration stocks but do hold oil services companies Petrofac, Wood Group and Amec Foster-Wheeler. These provide maintenance, support, engineering, and decommissioning services to their customers, the big integrated oil companies. Although returns from these businesses have unsurprisingly been falling, they now look to have turned the corner: consensus forecasts an increase this year, aided by aggressive cost-cutting programmes. Even if further warnings lie ahead, current valuation levels – including a sector free cash flow yield (FCFY) almost twice that of the market ...

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.