Alliance Trust PLC’s Investor Forum
- 03 mins 48 secs
Alliance Trust PLC’s Investor Forum
October saw Alliance Trust’s Investment Manager, Willis Towers Watson, host forums for shareholders and professional investors. The panel included four of their US-based equity managers, who each run concentrated portfolios for the Trust. These behind-the-scenes interviews reveal their insights around growth vs value investing, market volatility and the current appeal of emerging markets.
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Growth versus value is not as black and white as it appears to be. Value managers cannot perform during periods of time as khun growth managers. I think that we're in an environment where, as a growth manager, you also have to be very careful about what you pay for businesses. You can't be a growth manager without being a value manager and so very often it's, much more of a gray area than a black point. One of the more recent additions to the portfolio is a chinese company that focuses on the education market. And that company has an enormous tailwind of growth as thie one child policy in china was abolished recently than with the recent depreciation in emerging markets, the stock prices come down significantly and has provided a great opportunity to add it to the court. Wei don't know what the volatility of the market is going to be all, though, if you're investing in equity markets, it's safe to say that there will be periods of volatilities. But don't look at volatilities negatively. Volatility creates opportunity. Volatility is our friend. As a stock picker, we know our clients would rather have smooth markets in order to deliver the kind of returns that we want to deliver. We need that volatility to create the opportunities that we then take advantage of. Rising interest rates are around the world are potential headwind as well as some of the issues that are happening with trade between some of the various countries. The tailings continue to be relatively strong economic growth. In many countries, unemployment levels were relatively well. But we continue to think there's going to be more volatility court for than we see in the last few years, and so that's causing us to be as aware of potential opportunities in short term disruptions as we possibly can. I would have lit a couple things from the first would be the experience that various members have had with other very successful investment firms. Second would be we go about finding the ideas that we invest in very much on our own. We have the experience of having two decades of looking at international global businesses. These things allow us to come up with ideas from our research trips that we're not going to find reading a newspaper or talking to investment analysts from wall street banks. Call. Emerging markets doula cheap, but doesn't mean they can't go cheaper on a longer term basis. Not only the stocks have been hit hard over the last six, seven years now for also the currencies and appreciate it, and i think they do look very cheap, melted any sort of purchasing power parity or any sort of volition matrix. There are some sectors very typically has less and less in others, because sometimes you might find really good businesses in sectors which may not be flourishing aside because you know they could be the new players. What actual destructing the space we typically don't look for companies. There are the structures, however, we end up owning a some of the companies we tend to be destructive because they do have the headroom. The management tend to be very passionate about what they're doing. They tend to have a lot ofthe skin in the game or insider ownership and face, because it is a very good example of that. I don't. Oh!