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
Facebook Twitter LinkedIn

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
City of London Ord392.00 GBX0.64Rating
Dunedin Income Growth Ord325.00 GBX-1.22Rating
F&C Investment Trust Ord890.00 GBX1.14Rating
Finsbury Growth & Income Ord882.00 GBX0.00Rating
Merchants Trust Ord551.00 GBX-1.08
Temple Bar Ord1,086.00 GBX-1.63Rating
Unilever PLC3,893.00 GBX-0.64Rating

About Author

Szymon Idzikowski

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