Charles Luke, Investment Director:
“The outlook is becoming more difficult with a tightening policy backdrop and inflationary challenges coupled with the implications of the conflict in Ukraine, all likely leading to a slower global growth dynamic. However, we take comfort that the valuations of UK-listed companies remain attractive on a relative and absolute basis and as such we think a fair proportion of the portfolio may be vulnerable to corporate activity.
“Moreover, the dividend yield of the UK market remains at an appealing premium to other regional equity markets let alone other asset classes. Furthermore, international investors remain underweight the UK providing a further underpin.
“Therefore, we feel very comfortable maintaining our long term focus on investments in high quality companies with robust competitive positions and strong balance sheets led by experienced management teams, capable of delivering sustainable earnings and dividend growth.”
