Consumer Staples Sector a "Walking Profit Warning"

JOHCM UK Growth manager tells the Morningstar Investment Conference that there is uncomfortably high leverage among consumer staples stocks

David Brenchley 1 May, 2018 | 4:22PM
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Reckitt Benckiser brand Dettol

The consumer staples sector is “a walking profit warning”, Mark Costar, manager of the Morningstar Silver Rated JOHCM UK Growth fund, told the Morningstar Investment Conference on Tuesday.

Interest rates having been at a record low for so long means we’ve seen “capital mis-allocation on a grand scale” by corporates, as they attempt to satiate an investor base that has been starved of yield at the expense of investing in their businesses for the long-term.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,600.00 GBP0.00Rating
Capita PLC47.28 GBP0.00
JOHCM UK Growth GBP A Inc4.14 GBP-0.07Rating
Micro Focus International PLC362.10 GBP0.00
Reckitt Benckiser Group PLC5,515.00 GBP0.00Rating
Unilever PLC3,893.00 GBP0.00Rating
WPP PLC953.40 GBP0.00Rating

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk