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JOHCM UK Equity Income: Mind the Gap 3

Coronavirus, oil, Fund dividend and value vs. growth redux - an update from James Lowen and Clive Beagles.

  • James Lowen
  • Clive Beagles
19 Mar 2020
View PDF   Download PDF  
View PDF   Download PDF  
  • We are not complacent about the short-term economic impact of the pandemic, but we believe the effects will be finite – assuming a peak in new cases in April, recent and future stimulatory policy moves should bring about a v-shaped recovery in H2 2020.
     
  • We strongly believe that the valuations in the stocks and sectors that make up the majority of the Fund provide ample downside protection, even if our economic assumptions prove to be too optimistic.
     
  • In periods of extreme economic stress when earnings forecasts cannot be relied upon, price-to-book values are the most useful valuation measure – the Fund’s  price-to-book currently stands at under one for only the second time in its 15-year  history.

Disclaimer

Past performance is no guarantee of future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment. The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation. The Fund’s investment include shares in small-cap companies and these tend to be traded less frequently and in lower volumes than larger companies making them potentially less liquid and more volatile.

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