The AI opportunity

Position for growth in 2023

As the interest rate environment begins to normalise in 2023, we believe investors should seek exposure to those companies with access to growth opportunities.

Exposure to unloved cyclicals could mitigate a challenging outlook

Anna Farmborough explains that – despite a deeply challenging outlook for the UK economy – pockets of value can be found in some cyclical areas of the market.

Beware the inflation hangover

Inflation is being discussed daily, but how to combat it is less clearly understood; Abrie Pretorius explains why the Quality team believes there is a flaw in the traditional guidance to invest in capital-intensive, asset-rich companies.

Navigating a volatile equity market ahead of the US election

With the US election in sharp focus across global markets, every piece of news flow is being carefully assessed as investor attention turns to both near-term opportunities and risk factors. In our view, it is preferable to cut out the noise by focusing on a bottom-up approach that can combat elevated levels of volatility, specifically by selecting high-quality businesses that we believe have the potential to withstand a changing political and economic landscape.

Balancing the promise and perils of AI

Capturing structural growth potential is not easy, but in uncertain markets, it’s essential. Today, investors are eager to understand more about the potential opportunities in Artificial Intelligence (AI). Head of Quality Clyde Rossouw explains why exposure to higher quality companies can successfully position investors for an AI-driven future.

Quality: An evolution of positioning, but not principles

Clyde Rossouw explains why the inherent adaptability of his team’s Quality approach has enabled the constituents of Global Franchise to evolve over time, without compromising their purist quality philosophy.

Looking into Alcon

Quality companies can be found across many sectors, providing they possess some key attributes. In this short video, portfolio manager Abrie Pretorius details why our Quality team believes that Alcon – with its dominant position in the eye care market and strong balance sheet – is well placed to benefit from the structural growth opportunity that the industry offers.

Digesting the result from a Quality perspective

While there has been some short-term volatility in the immediate aftermath of the decisive election result, Clyde Rossouw explains why the direction of travel over the longer term is likely to be supportive for a quality approach based on earnings resilience.

Global Franchise update

We recently hosted a live webinar where Clyde Rossouw, the PM of the Ninety One Global Franchise gave an update on the strategy, his views on the current market environment and the team’s differentiated approach to Quality investing. Watch the recording here.

Navigating an increasingly concentrated market

The narrow leadership in global equities is unprecedented. It is also dangerous. Clyde Rossouw explains why markets do not appear as healthy as the headlines suggest, and that there are several warning signs that investors should be cognisant of.

Making holidays profitable

Travel is an attractive industry to look for investment opportunities. In this short video, analyst Joe Thomas talks us through why our Quality team believes that Booking Holdings – with its strong competitive position and capital light business model – is well placed to ride the structural growth wave that the industry offers.

5 minutes

Why the best stories often don’t make good investments

A handful of global companies have provided outsized returns this year, creating both risks and opportunities. Sometimes, the best businesses don’t make the best investment cases.

Fundamentals to be the differentiator

Clyde Rossouw explains why he believes that the market will broaden out from its narrow leadership, and stocks that deliver consistent earnings and free cash flow growth could be 2024’s winners.

Balance sheet strength to prove critical

The US market extends beyond megacaps. Paul Vincent delves into three sectors he will have his eye on in 2024 and highlights the importance of balance sheet strength as we approach the new year.

Global Insights 2023

2023 has been a year of defining change, with much of the world adapting to higher interest rates. See below for key takeaways from the sessions with our portfolio managers.

Notes from the road: scratching beneath the surface

China’s economic recovery has been tepid at best, with macro data weaker than expected. But what’s actually happening on the ground? Mendy Zhang shares some of her observations from her recent visit.

UK savings platforms: a diamond in the rough

The UK’s financial sector is not just about big banks. Portfolio managers Ben Needham and Anna Farmbrough explain why savings platforms are a pocket of the equity market with significant growth potential, making it an area of focus for quality investors. Demographics, government regulation and technology should all help its development, with additional learnings on offer from US counterparts.

China's self-sufficiency opportunity

The past couple of years have been disorderly for Chinese equities. However, President Xi’s recent reshuffle provides greater clarity regarding the government’s direction of travel. In our view, the trend towards localisation – prioritising domestic champions over foreign alternatives, in order to drive self-sufficiency – will benefit several leading companies within the quality spectrum, particularly in the software, healthcare and consumer sectors.

Semiconductors: an industry shaping the modern world

A Quality deep dive into the semiconductor industry

41 minutes

Position for growth in 2023

As the interest rate environment begins to normalise in 2023, we believe investors should seek exposure to those companies with access to growth opportunities.

Exposure to unloved cyclicals could mitigate a challenging outlook

Anna Farmborough explains that – despite a deeply challenging outlook for the UK economy – pockets of value can be found in some cyclical areas of the market.

Beware the inflation hangover

Inflation is being discussed daily, but how to combat it is less clearly understood; Abrie Pretorius explains why the Quality team believes there is a flaw in the traditional guidance to invest in capital-intensive, asset-rich companies.

Navigating a volatile equity market ahead of the US election

With the US election in sharp focus across global markets, every piece of news flow is being carefully assessed as investor attention turns to both near-term opportunities and risk factors. In our view, it is preferable to cut out the noise by focusing on a bottom-up approach that can combat elevated levels of volatility, specifically by selecting high-quality businesses that we believe have the potential to withstand a changing political and economic landscape.

Balancing the promise and perils of AI

Capturing structural growth potential is not easy, but in uncertain markets, it’s essential. Today, investors are eager to understand more about the potential opportunities in Artificial Intelligence (AI). Head of Quality Clyde Rossouw explains why exposure to higher quality companies can successfully position investors for an AI-driven future.

Quality: An evolution of positioning, but not principles

Clyde Rossouw explains why the inherent adaptability of his team’s Quality approach has enabled the constituents of Global Franchise to evolve over time, without compromising their purist quality philosophy.

Looking into Alcon

Quality companies can be found across many sectors, providing they possess some key attributes. In this short video, portfolio manager Abrie Pretorius details why our Quality team believes that Alcon – with its dominant position in the eye care market and strong balance sheet – is well placed to benefit from the structural growth opportunity that the industry offers.

Digesting the result from a Quality perspective

While there has been some short-term volatility in the immediate aftermath of the decisive election result, Clyde Rossouw explains why the direction of travel over the longer term is likely to be supportive for a quality approach based on earnings resilience.

Global Franchise update

We recently hosted a live webinar where Clyde Rossouw, the PM of the Ninety One Global Franchise gave an update on the strategy, his views on the current market environment and the team’s differentiated approach to Quality investing. Watch the recording here.

Navigating an increasingly concentrated market

The narrow leadership in global equities is unprecedented. It is also dangerous. Clyde Rossouw explains why markets do not appear as healthy as the headlines suggest, and that there are several warning signs that investors should be cognisant of.

Making holidays profitable

Travel is an attractive industry to look for investment opportunities. In this short video, analyst Joe Thomas talks us through why our Quality team believes that Booking Holdings – with its strong competitive position and capital light business model – is well placed to ride the structural growth wave that the industry offers.

5 minutes

Why the best stories often don’t make good investments

A handful of global companies have provided outsized returns this year, creating both risks and opportunities. Sometimes, the best businesses don’t make the best investment cases.

Fundamentals to be the differentiator

Clyde Rossouw explains why he believes that the market will broaden out from its narrow leadership, and stocks that deliver consistent earnings and free cash flow growth could be 2024’s winners.

Balance sheet strength to prove critical

The US market extends beyond megacaps. Paul Vincent delves into three sectors he will have his eye on in 2024 and highlights the importance of balance sheet strength as we approach the new year.

Global Insights 2023

2023 has been a year of defining change, with much of the world adapting to higher interest rates. See below for key takeaways from the sessions with our portfolio managers.

Notes from the road: scratching beneath the surface

China’s economic recovery has been tepid at best, with macro data weaker than expected. But what’s actually happening on the ground? Mendy Zhang shares some of her observations from her recent visit.

UK savings platforms: a diamond in the rough

The UK’s financial sector is not just about big banks. Portfolio managers Ben Needham and Anna Farmbrough explain why savings platforms are a pocket of the equity market with significant growth potential, making it an area of focus for quality investors. Demographics, government regulation and technology should all help its development, with additional learnings on offer from US counterparts.

China's self-sufficiency opportunity

The past couple of years have been disorderly for Chinese equities. However, President Xi’s recent reshuffle provides greater clarity regarding the government’s direction of travel. In our view, the trend towards localisation – prioritising domestic champions over foreign alternatives, in order to drive self-sufficiency – will benefit several leading companies within the quality spectrum, particularly in the software, healthcare and consumer sectors.

Semiconductors: an industry shaping the modern world

A Quality deep dive into the semiconductor industry

41 minutes

Position for growth in 2023

As the interest rate environment begins to normalise in 2023, we believe investors should seek exposure to those companies with access to growth opportunities.

Exposure to unloved cyclicals could mitigate a challenging outlook

Anna Farmborough explains that – despite a deeply challenging outlook for the UK economy – pockets of value can be found in some cyclical areas of the market.

Beware the inflation hangover

Inflation is being discussed daily, but how to combat it is less clearly understood; Abrie Pretorius explains why the Quality team believes there is a flaw in the traditional guidance to invest in capital-intensive, asset-rich companies.

Navigating a volatile equity market ahead of the US election

With the US election in sharp focus across global markets, every piece of news flow is being carefully assessed as investor attention turns to both near-term opportunities and risk factors. In our view, it is preferable to cut out the noise by focusing on a bottom-up approach that can combat elevated levels of volatility, specifically by selecting high-quality businesses that we believe have the potential to withstand a changing political and economic landscape.

The AI opportunity

Abrie Pretorius

Nikhil Solanki

Authored by

Abrie Pretorius

Portfolio Manager

Nikhil Solanki

Analyst

Quality - latest insights

Balancing the promise and perils of AI

Quality: An evolution of positioning, but not principles

Looking into Alcon

Digesting the result from a Quality perspective

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