Given the COVID-19 pandemic, Portfolio Manager Gordon Mackay provides an update on the Global Equity Strategy, which seeks to invest in a portfolio of high quality, growing companies that have the resilience to weather unforeseen events.

    Key takeaways

  • A key element of the Edinburgh-based Global Equity team’s approach is to look for high-quality and predictable businesses that are capable of ‘weathering a storm’. Businesses are sought that are likely to have operational resilience during a downturn, alongside companies that do not rely on excessive levels of debt to operate.
  • The strategy has no exposure to the energy sector; companies in this sector tend to be highly correlated to underlying oil or gas commodity prices, which can be difficult to predict.
  • Similarly, the strategy does not own any developed market banks given the tough operating environment with low interest rates and the tendency for high levels of financial leverage.