On 24 March 2022, Portfolio Manager, Dan Whitestone, shared an update on portfolio positioning, performance of the Trust in 2021 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 digital transformation remains the most attractive structural growth story today and the trust holds a range of companies that should benefit.
- Covid has created a major shift between winning and losing companies. This gap has extended as supply chain problems have worsened.
- This has been an unusual period in markets, with significant disparity between companies’ operational and share price performance. Markets are increasingly worried about a catastrophic scenario.
- There has been a rotation from growth to value, which has hurt the relative performance of the trust. Investors have tended to sell those companies that have seen strong appreciation in their share prices.
- While pricing power is important in an environment of higher inflation, access to stock has been the differentiator for many companies.
- The trust remains focused on those companies that can grow their earnings significantly over time. They need to be run by strong management teams, with a track record of executing successfully.
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 2022 and may change as subsequent conditions vary.
