This page contains a Flash digital edition of a book.
ADVERTORIAL


Are you stuck in a UK rut?


Prior to voting on EU membership, the UK was one of the world’s strongest economies to emerge from the global financial crisis. But Brexit has exposed real concerns about the UK’s immediate economic prospects, our currency too and the consequent impact on selected industries. The most immediate victim so far has been a collapse in the value of Sterling against all major currencies; investment portfolios with high overseas exposure will have benefited accordingly.


JAMIE BLACK PARTNER & HEAD OF PRIVATE CLIENTS


STERLING HAS FALLEN BY 18% THIS YEAR Bank of England, Effective Exchange Rate Index


Sterling Index


72.5 74.5 76.5 78.5 80.5 82.5 84.5 86.5 88.5 90.5 92.5


Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2016


Source: Macrobond, Bank of England Sterling valuation comparison against a basket of currencies


which the UK stock market simply cannot compete with. This is the investment message Sarasin has consistently delivered to clients for over twenty years and the rationale has never been more compelling.


Why does any of this matter from an investment perspective? First and foremost because it has re-emphasised the UK stock market’s very significant concentration risk across a few sectors, e.g. too much in financials and energy, against far too little in technology (less than 1%!), not to mention stock specific risk (the 10 biggest companies listed on the UK stock market represent more than one third of its total value). Looking at it another way, the combined value of the 6 biggest companies quoted in America is greater than the entire UK stock market. What is more, most of the world’s largest companies now generate the majority of their revenues overseas, hence the location of their stock market listing has become increasingly irrelevant in terms of assessing future growth potential.


So why limit one’s equity exposure to our domestic stock market when the UK now represents less than 7% of the World Index? The simple answer is you shouldn’t. In our view, a truly global outlook is a better option for your financial well-being, bringing a wealth of diversification and growth opportunities,


The traditional investment approach for private wealth in the UK has been to focus the majority of equity exposure in the domestic UK index with lesser overseas positions around the edges. At Sarasin & Partners, we believe in giving our clients access to the world’s best companies regardless of their location. Thematic stock selection has been the bedrock of our pioneering approach since the mid-90s. We realised then that the trend towards globalisation, along with technological and demographic changes, would all become significant drivers of investment returns. The evidence of the last twenty years has strengthened our conviction and by harnessing our long-standing global thematic expertise, we continue to invest across a wide horizon, selecting best in class companies from around the world.


If your portfolio is stuck in a UK rut and you are interested in hearing more about our global approach, and how Sarasin & Partners manage investments on behalf of our clients, please contact Sophie Jewson at sophie.jewson@sarasin.co.uk or call 020 7038 7289.


October 2016


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186  |  Page 187  |  Page 188  |  Page 189  |  Page 190  |  Page 191  |  Page 192  |  Page 193  |  Page 194  |  Page 195  |  Page 196  |  Page 197  |  Page 198  |  Page 199  |  Page 200  |  Page 201  |  Page 202  |  Page 203  |  Page 204  |  Page 205  |  Page 206  |  Page 207  |  Page 208  |  Page 209  |  Page 210  |  Page 211  |  Page 212  |  Page 213