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Olly Russ: Three hidden gems of European Income

Investors who are turning to equities for income generation in the absence of any meaningful yield from cash, government bonds or corporate bonds will already be well aware that the asset class’ higher risk means it is sensible to seek diversification.

One clear and obvious way of achieving this is to own shares in a broad spread of companies. If there is one thing we have learned over the last five years or so it is that there is no such thing as a ‘safe’ blue chip – witness BP, Royal Bank of Scotland and Tesco, all of whom have seen their share prices more than halve in that time – so having too high a portfolio exposure to the largest dividend powerhouses can be dangerous.

Carolyn Chan: Staying overweight Asia’s best-performing market in 2016

Thailand’s stock market is the best performing within our universe year-to-date, posting a 23% return in local currency terms and a 28% return in US dollar terms. Due to our significant overweight position in the country, it has also been one of the key contributors to this year’s strong performance from the Liontrust Asia Income Fund*. But should investors now be perturbed by August’s constitutional referendum, which appears to have handed more power to the military junta?

Olly Russ: The political event which could dwarf Brexit in its European significance

‘If voting made any difference, they wouldn’t let us do it.’ Mark Twain

European equities face a significant referendum-related challenge – no, not that one but rather the one called by Italian prime minister Matteo Renzi for October/November this year.

For those suffering from referendum overload, this might have passed unnoticed, and indeed it has so far received very little public attention. However, in the context of Italy’s future trajectory, it is potentially hugely more significant for that country than Brexit will be for the UK, and by extension therefore, of critical importance to Europe and European equities.

John Husselbee: Investment lessons from Mo Farah and Usain Bolt

Millions are poised to watch the world’s best athletes compete as the Rio 2016 Olympics kicks off, with the fastest man on earth Usain Bolt and Britain’s most-decorated athlete Mo Farah likely to garner a good deal of interest. 

Stephen Bailey: $ earners - one sector to buy and one to avoid

The defining trait of the immediate post-Referendum market, has been the division of UK equities into Brexit “winners” and “losers”; domestic names shunned and dollar earners bid higher. The repricing of sterling in the aftermath of the vote was indeed significant: from its pre-result level of $1.50 on 24 June, sterling has tumbled 14% to its recent low of $1.29 on 7 July.

We view sterling as likely to remain soft over the rest of the year, with Cable potentially settling closer to $1.25/£. We therefore see the attraction of increasing exposure to overseas earners, whilst maintaining our longstanding exposure to US quoted companies at a steady 20% weighting.

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.