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An update from our investment managers, Ben Ritchie and Georgina Cooper - 9 November 2020
The FTSE All Share dropped quite sharply in October, reflecting continued concern over measures taken to combat a resurgence of Covid-19 cases and uncertainty in the run up to the US presidential election. In contrast to recent months banks and oil stocks were the outperformers, while more defensive assets such as consumer goods and pharmaceuticals underperformed in the face of global bond yields moving higher and continued dollar weakness.
At the company level Weir Group announced the sale of its oil & gas business which was well received by the market. This not only reinforces its balance sheet but also leaves a much more compelling business centred on its minerals division that has a solid aftermarket proposition, greater resilience and higher margins. Standard Chartered’s earnings suffered amidst current circumstances where lower rates and lower economic growth are unhelpful for revenue growth and will delay the improvement of its return profile. Emerging market asset manager Ashmore produced resilient results despite the ongoing macro uncertainty and remains well placed to benefit from flows into its area of focus.
We made a number of changes to the portfolio over the month as we look to concentrate our holdings further and put more capital into our best ideas. As a result we exited positions in a number of smaller positions and used the funds raised to increase more favoured existing holdings.
Our outlook remains somewhat cautious given the recent resurgence in virus cases across much of Europe and the UK and the restrictive measures applied to contain its spread. This comes at a time when the expectation of economic recovery has been reflected in equity markets to a reasonable degree and where risk assets have performed well following the US election. Meanwhile, we expect that a UK-EU trade deal remains likely, but believe that to be largely priced in to UK stocks. In the United States a likely balanced outcome to the predicted “blue wave” election, with a Biden presidency but the Democrats lacking outright control over the Senate, has been broadly welcomed by markets though it will likely be several more months before we will learn the final composition of the upper chamber. As a result we remain watchful for opportunities though for the moment we are happy to retain a defensive tilt to our overall positioning.
Ben Ritchie is Deputy Head of European Equities at Aberdeen Standard Investments and originally joined Aberdeen Asset Management in 2002 as a graduate, having interned with Aberdeen in 2000 and 2001. Ben graduated with a BA (Hons) in Modern History and Politics from Pembroke College, University of Oxford and is a CFA Charterholder.
Georgina Cooper is an Investment Manager in the UK Equities team for Aberdeen Standard Investments having originally joined Aberdeen Asset Management in 2014 on the graduate scheme. Georgina graduated with a BSc with Honours Mathematics from the University of Edinburgh and is also a certified CFA Charterholder.
Head of European Equities
Ben Ritchie is Deputy Head of European Equities at Aberdeen Standard Investments and originally joined Aberdeen Asset Management in 2002 as a graduate, having interned with Aberdeen in 2000 and 2001. Ben graduated with a BA (Hons) in Modern History and Politics from Pembroke College, University of Oxford and is a CFA Charterholder.
Investment Manager
Georgina Cooper is an Investment Manager in the UK Equities team for Aberdeen Standard Investments having originally joined Aberdeen Asset Management in 2014 on the graduate scheme. Georgina graduated with a BSc with Honours Mathematics from the University of Edinburgh and is also a certified CFA Charterholder.
Jasper Judd is a Chartered Accountant. Until 2012, he worked for Brambles Limited, a listed Australian multinational, where he held a number of senior executive roles including Global Head of Strategy. He is also a non-executive director of JP Morgan Indian Investment Trust plc.
He is Chairman of the Audit Committee.
Christine Montgomery has over 30 years of investment management experience, most recently as Head of Global Equities at AustralianSuper in Melbourne from 2016 to 2019. She previously held roles as a global equities portfolio manager at Fidelity Worldwide Investments, Martin Currie and Edinburgh Partners.
Elisabeth Scott worked for Schroders in Hong Kong from 1992 until 2008, most recently as Country Head. Previously she was responsible for Schroders’ institutional client business in Hong Kong and managed multi-asset portfolios. She chaired the Hong Kong Investment Funds Association between 2005 and 2007. She is also director of India Capital Growth Fund Limited, Fidelity China Special Situations Investment Trust PLC, Allianz Technology Trust PLC and the Association of Investment Companies.
Howard Williams has over 35 years’ of fund management experience and was, until October 2017, Chief Investment Officer and Head of the Global Equity Team at JPMorgan Asset Management. Prior to joining JPMorgan Asset Management in 1994, he held a number of senior positions at Shell Pensions and Kleinwort Benson Asset Management. He started his career at James Capel & Co. He is also a non-executive director of Schroders Unit Trust Limited. He is the Senior Independent Director.
Chairman
Non-Executive Director
Jasper Judd is a Chartered Accountant. Until 2012, he worked for Brambles Limited, a listed Australian multinational, where he held a number of senior executive roles including Global Head of Strategy. He is also a non-executive director of JP Morgan Indian Investment Trust plc.
He is Chairman of the Audit Committee.
Non-Executive Director
Christine Montgomery has over 30 years of investment management experience, most recently as Head of Global Equities at AustralianSuper in Melbourne from 2016 to 2019. She previously held roles as a global equities portfolio manager at Fidelity Worldwide Investments, Martin Currie and Edinburgh Partners.
Non-Executive Director
Elisabeth Scott worked for Schroders in Hong Kong from 1992 until 2008, most recently as Country Head. Previously she was responsible for Schroders’ institutional client business in Hong Kong and managed multi-asset portfolios. She chaired the Hong Kong Investment Funds Association between 2005 and 2007. She is also director of India Capital Growth Fund Limited, Fidelity China Special Situations Investment Trust PLC, Allianz Technology Trust PLC and the Association of Investment Companies.
Non-Executive Director
Howard Williams has over 35 years’ of fund management experience and was, until October 2017, Chief Investment Officer and Head of the Global Equity Team at JPMorgan Asset Management. Prior to joining JPMorgan Asset Management in 1994, he held a number of senior positions at Shell Pensions and Kleinwort Benson Asset Management. He started his career at James Capel & Co. He is also a non-executive director of Schroders Unit Trust Limited. He is the Senior Independent Director.
| Year End | 31 January |
| Accounts Published | March |
| Annual General Meeting | May |
| Dividend Paid | August, November, February, May |
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