Focus on Quality as Volatility Abounds

Iain Stewart, manager of the Bronze-rated Newton Real Return Fund, says it's sensible for investors to focus on stable, well-run companies during volatile times

Newton Investment Management 17 October, 2012 | 12:29PM

This article is part of Morningstar's "Perspectives" series, which is a series of articles written by third-party contributors. In this article, Iain Stewart, manager of the Bronze-rated Newton Real Return Fund, discusses his economic and investment views.

Summary

- The investment backdrop remains much as it was at the turn of the year
- Despite the potential for short-term gains, a focus on stable, well-run companies seems sensible
- Investors should be mindful that policy action is likely to have an inflationary consequences further down the line

Look for Quality

We believe the backdrop remains much as it was at the start of the year; in a world facing the challenges of debt reduction and demographic trends, real growth will prove difficult to generate. This will not prevent the authorities from trying to boost activity in new and ever more innovative ways. The interplay between the difficult structural backdrop and the efforts of the authorities is likely to maintain a high level of economic and financial volatility.

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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.

About Author

Newton Investment Management

Newton Investment Management  is a London-based, global investment management subsidiary of The Bank of New York Mellon Corporation. Newton provides award-winning investment products and services to a broad spectrum of clients.

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