Videos: Fund Manager Q&As
Australian Equities - Andrew Fleming
Deputy Head of Australian Equities, Andrew Fleming, on the current positioning of the Schroder Australian Equities Strategy.
- Share price momentum is at perhaps the most powerful level we have seen in the past couple of decades. Nearly all of this momentum has been concentrated in defensive and financial sectors as falling interest rates have been the overwhelming influence on asset prices in recent years.
- We remain of the view that current levels of interests rates are both artificial and destructive as they are encouraging speculation and financial leverage over productive investment. History would suggest this will prove unsustainable and significant deleveraging will be required.
- Valuations through the cycle are always the major driver of our positions, and it is this focus that has cost portfolio performance over more recent periods.
Andrew discusses the strong cyclical forces particularly in the defensive part of the market and his expectations for commodity prices given the significant recent declines.
Andrew shares our views about a number of key positions in the Schroder Australian Equity Fund, including Resources, Banks, Food Retailing and our expectations for the Fed this week.
Opinions, estimates and projections in this article constitute the current judgement of the author as of the date of this article. They do not necessarily reflect the opinions of Schroder Investment Management Australia Limited, ABN 22 000 443 274, AFS Licence 226473 ("Schroders") or any member of the Schroders Group and are subject to change without notice. In preparing this document, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this article. Except insofar as liability under any statute cannot be excluded, Schroders and its directors, employees, consultants or any company in the Schroders Group do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this article or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this article or any other person. This document does not contain, and should not be relied on as containing any investment, accounting, legal or tax advice. Schroders may record and monitor telephone calls for security, training and compliance purposes.