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Sarasin IE Multi Asset - Dynamic (GBP) - News
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Fund Name Changed
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Tuesday, 6 July 2021
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Official Announcement
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The Sarasin IE GlobalSar - Dynamic (GBP) will change it's name to Sarasin IE Multi Asset - Dynamic (GBP), effective from 06 July 2021
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Sarasin GlobalSar Dynamic GBP comment - Dec 15
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Friday, 11 March 2016
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Fund Manager Comment
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The last quarter of 2015 was a relatively good one for the fund, which benefited from stronger equity markets and continued performance from Disruption & Innovation names in particular, with Amazon, Netflix and Google all doing well. We are often asked if we are worried about ‘valuations’ for these names, but we find often what people are really asking is whether or not we worried about ‘multiples’. There is a difference, and there are good reasons why these companies trade at multiples of book value that a manufacturer or retailer could never justify due to their capital light business models. High run rates of growth and large addressable markets mean earnings multiples a few years out are much more palatable, and this is where the value lies.
Outside of the technology sector, 2015 was a more challenging year. At the broad asset class level, low single-digit returns were generally all that could be delivered, sadly constraining the returns of the fund to around this level as well. Commodities, however, fell across the board for the second consecutive year. We have no direct commodity investments, with any exposure through stocks or bonds focused only on those companies best positioned to weather low prices.
The main beneficiaries of low commodity prices should be those economies that are the biggest net importers of energy and commodities. This should offer some support to the Indian, Japanese, European and US economies going into next year, despite challenges from rising credit spreads, weaker emerging markets, and the next step in the US rate rise cycle. This supports our allocations to consumer facing sectors and banks in these regions, which we believe are well positioned going into the New Year.
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Sarasin GlobalSar Dynamic GBP comment - Sep 14
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Monday, 20 October 2014
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Fund Manager Comment
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The US remained an economic bright spot throughout much of the third quarter, though the Federal Reserve is still expected to start hiking interest rates only around mid-2015, and Chair Janet Yellen continues her labour market focus. In Europe, meanwhile, despite a disappointing take up of TLTROs (targeted longer-term refinancing operations), Mario Draghi claimed that the European Central Bank remained ready to deploy more unconventional monetary policy in the face of weak data and entrenched deflation. Elsewhere, politics held centre stage through the Scottish independence referendum's 'No' vote in the UK, and anti-China protests in Hong Kong.
After a tough start to the year it was encouraging to see better performance from some of our financial stocks over the last quarter, with Citigroup, JP Morgan and AIA Group all posting sold returns. Elsewhere, healthcare names also continued to do well, with Amgen in Disruption & Innovation our best contributor, as a more optimistic view of the pipeline began to be priced in.
One of our largest positions, BorgWarner (automotive components), was sadly down 15% over the quarter. However, we still see real thematic strength in the company, and are considering taking the opportunity to increase our position. Our energy stocks were also relatively weak, as global oil prices fell almost 15% from their June peak. However, we have long felt that improved efficiency measures would weigh on global oil demand more than many expect, and as such we are positioned in energy names that should be relatively robust to an environment of lower oil prices.
During the quarter, we began a position in Air Products - a leading producer and supplier of industrial gases. The company has a new CEO and the potential for lots of margin improvement in what is a fundamentally reliable stable line of business. This new holding was partially financed by the sale of two our Security of Supply names (TDC and Philippine Long Distance Telecom) as valuations in both names caught up with reality.
Our outlook has become gradually less positive over the last few quarters as equity markets have risen and valuations have become less and less attractive. But, despite generally higher equity markets, we feel the picture relative to bonds has actually improved for equities so far this year, and the collapse in long- term bond yields has continued to surprise us. With the US and UK governments now borrowing money for 30 years at less than 3%, a combination of a robust and diversified equity portfolio, and a precautionary cash position, continues to sound like a more attractive strategy to us.
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