Courtiers Wealth Management
Courtiers Wealth Management

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CIO Talk: Confidence in UK recovery

5 Nov 2021
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A lot’s happened since Gary’s last CIO Talk in September: the Bank of England’s latest interest rate announcement, Rishi Sunak’s Autumn Budget and ongoing problems with supply chains fuelling a surge in inflation to name but a few events.

It’s clear, however, that amid all the economic pressures and the recent swirl of events, what is upmost in Gary’s mind is that none of this detracts from or derails the performance of the Courtiers Funds. “I am always worried about whether there is going to be a downturn – that’s what our clients pay us for – that’s part of the job,” he says.

It’s one reason why Gary keeps his eye on events, such as last Thursday’s decision by the Bank of England to hold interest rates at the historically low level of 0.1%. A decision, which he says “was exactly right”.

To Gary’s mind a future rise will only take place “once the economy has settled down”. At which point “with the supply of certain goods and energy prices starting to get back to normal and with additional government spending leaving aggregate demand in the economy quite high,” the Bank of England will act “to dampen down some of that demand.”

Despite the doomsayers, who see next year’s tax rises and rising inflation dampening UK consumer demand and reducing living standards, Gary’s upbeat about the UK generally, going on to praise much of the country’s response to the pandemic, particularly in avoiding a major recession.

As to the subject of investment, Gary is positively bullish about the UK, where the lack of a massive technology sector means that UK shares “are generally more fairly valued than other places around the world.” You don’t need to look any further than the US as an example. “At the moment, we quite like our domestic market and you can find lots of hidden gems.” It’s those “little nuggets of value” that have contributed handsomely to the performance of Courtiers Funds.

“If you could turn the clock back 10 years and say to me, ‘Would you settle for every one of your multi-asset funds being top quartile in terms of absolute performance over five years?’, of course I am going to say ‘yes’,” says Gary. The UK Equity Fund has also made impressive returns placing it in the top quartile over both one and five years.

While Gary is “over the moon” at the performance of these funds and the contribution of UK stocks in particular to that performance, he has no intention of letting the Investment Team rest on its laurels. “It makes you want to work hard to keep your position, but we have a good process and we follow it religiously.”

Important Information

Issued by Courtiers Asset Management Limited, CAM0421629 Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority – Register No: 616322. Address: 18 Hart Street, Henley on Thames, Oxfordshire RG9 2AU. Tel: 01491 578368

Past performance is not a reliable indicator of future returns. The value of investments, and the income from them, can go down as well as up and is not guaranteed and you may not get back the amount originally invested. Any forecast, projection or target where provided is indicate only and is not guaranteed in any way. Certain types of funds might carry a greater investment risk than other investment funds. Further details of the risks are associated with investing in Courtiers funds can be found in the Key Investor Information Document or Prospectus, copies of which are available on request or at www.courtiers.co.uk.

Disclaimer

This communication is for information purposes only and should not be relied upon in making an investment decision. The views expressed by individuals and the business are based on market conditions at the date of issue and are subject to change without notice. The mention of any stocks or shares should not be taken as recommendation to deal and does not take into account the individual investor’s investment objective or risk profile. Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. Any third party sites, or pages which are linked to the document, have not been reviewed by us and therefore we accept no responsibility for the authors or content of external link or pages. If you are interested in any of Courtiers Asset Management Limited’s range of funds, or require any financial advice, please speak to a financial adviser.

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