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.

13/12/2015

Andrew Fleming

Andrew Fleming

Deputy Head of Australian Equities

  • 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.

Part 1

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.

Part 2

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.

Important Information:
This material has been issued by Schroder Investment Management Australia Limited (ABN 22 000 443 274, AFSL 226473) (Schroders) for information purposes only. It is intended solely for professional investors and financial advisers and is not suitable for distribution to retail clients. The views and opinions contained herein are those of the authors as at the date of publication and are subject to change due to market and other conditions. Such views and opinions may not necessarily represent those expressed or reflected in other Schroders communications, strategies or funds. The information contained is general information only and does not take into account your objectives, financial situation or needs. Schroders does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this material. 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 material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. You should note that past performance is not a reliable indicator of future performance. Schroders may record and monitor telephone calls for security, training and compliance purposes.