Annual General Meeting

On 23 March 2023, Portfolio Manager, Dan Whitestone, shared an update on portfolio positioning, performance of the Trust in 2022 and the outlook for the year ahead.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Key Insights:

  • The trust’s investment philosophy is built on the view that share price performance is driven by cash-backed earnings, which give companies flexibility on acquisitions, dividends and buy backs.
  • The trust favours companies with skilled management teams, in industries with long-term secular drivers, and a strong market position within their industry.
  • We look for companies with financial strength and low leverage. This allows companies control over their financial destiny.
  • Share prices for smaller companies fell in anticipation of earnings downgrades. Often, this weakness did not materialise and demand remained strong.
  • Covid has accelerated some profound changes in certain markets, enabling stronger companies to get stronger.
  • The market hasn’t differentiated sufficiently between companies delivering revenue growth from rising prices and those delivering growth from volume growth. Stock specific outcomes will go back to driving share price returns.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or financial product or to adopt any investment strategy. The opinions expressed are as of March 2023 and may change as subsequent conditions vary.