By Mark Martin, Head of UK Equities at Neptune Investment Management
Recent UK GDP figures indicated that the economy is in good health, with a 0.5% rise in GDP in the final quarter of 2015. Whilst the GDP growth rate fell from 2.9% in 2014 to 2.2% in 2015 as a whole, this expansion – coupled with last quarter’s strong performance – gives us cause to remain bullish on the UK economy.
Despite this, concerns about China’s economic activity and growth rate continue to unnerve investors. We believe such fears are overplayed. Europe, where we believe we are reaching an inflection point, is the UK’s largest trading partner, with emerging market demand having much less of an impact. This is particularly so for the mid and small cap parts of the market, where we are focused. Further, we believe China’s path of gradual slowing growth and rebalancing away from a manufacturing to a service-led economy will be positive in the long term.
Important information: Investment risksThis fund may have a high historic volatility rating and past performance is not a guide for future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and your clients may not get back the original amount invested. A majority of the investments made by the funds may be in securities of small and medium sized companies. Such securities may involve a higher degree of risk than would be the case for securities of larger companies. Neptune funds are not tied to replicating a benchmark and holdings can therefore vary from those in the index quoted. For this reason the comparison index should be used for reference only. References to specific securities are for illustration purposes only and should not be taken as a solicitation to buy or sell these securities. Please remember that forecasts are not a reliable indicator of future performance. The content of this document is formed from Neptune’s views as at the date of issue. We do not undertake to advise you as to any change of our views. Neptune does not give investment advice and only provides information on Neptune products. Please refer to the Prospectus for further details.
