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
Facebook Twitter LinkedIn

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.

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
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