Not overpaying for stocks becomes more important than ever in the current climate. Similarly, we do not want to hold stocks that are overvalued because their price is vulnerable to a bigger correction. But a stock can be more expensive and still fair value. I am confident that the profit margins and prospects of the high-quality American companies we favour mean these businesses merit their higher prices. Many offer globally diversified exposure to end markets as well. Therefore, I do not believe that having a big exposure to US listed companies necessarily increases risk in a portfolio. Executed smartly the strategy should reduce it.
Alex Illingworth is co-manager of the Mid Wynd International Investment Trust and the Artemis Global Select Fund
[1] Source: Factset: https://insight.factset.com/sp-500-forward-p/e-ratio-falls-below-10-year-average-for-the-first-time-since-q2-2020
[2] Source: EIA: https://www.eia.gov/energyexplained/us-energy-facts/imports-and-exports.php
Past performance is not a guide to the future. Since launch the fund has returned 232.9% versus the benchmark’s return of 200.2%. Source: Lipper, class I GBP Acc units from 16 June 2011 to 31 July 2022. Over ten years the fund has returned 222.0% versus the benchmark’s return of 199%. All figures show total returns with dividends and/or income reinvested, net of all charges. Performance does not take account of any costs incurred when investors buy or sell the fund. Returns may vary as a result of currency fluctuations if the investor’s currency is different to that of the class. The fund’s benchmark is the MSCI AC World NR GBP.
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Mid Wynd International Investment Trust
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