Unilever: To Buy or Not to Buy?

Morningstar's Szymon Idzikowski looks at what the professional money managers have been doing in the lead up to--and the wake of--Unilever's profit warning

Szymon Idzikowski 3 October, 2013 | 5:45PM
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Following a strong start to the year, Unilever’s (ULVR) luck had reversed by the end of May; it’s been hit by sluggish demand in Europe and weakening currencies in emerging markets, from where it derives most of its revenue. Thus earlier this week the company posted its first profit warning in a decade and pushed the share price down to its lowest level in 2013.

What does this mean for investors? Are the professional investment trust managers abandoning and selling out, or do they see the weakness in the share prices as an opportunity to top up their positions?

As at 30th June, there were 26 investment trusts invested in Unilever (as measured by the most recent full-holdings portfolio data supplied to Morningstar). The most recent data do not reflect if and how any of these fund managers made changes to their positions in the stock on the back of this week’s profit warning but given the company’s size, it’s a stock on which all UK large-cap equity fund managers must have a view.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
City of London Ord403.50 GBX0.88Rating
Dunedin Income Growth Ord319.00 GBX0.47Rating
F&C Investment Trust Ord872.24 GBX0.49Rating
Finsbury Growth & Income Ord914.21 GBX-0.09Rating
Merchants Trust Ord522.16 GBX1.00Rating
Temple Bar Ord1,049.56 GBX0.92Rating
Unilever PLC4,152.34 GBX-0.08Rating

About Author

Szymon Idzikowski

Szymon Idzikowski  is a closed-end fund analyst with Morningstar.

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