Beyond Bulls & Bears

Do Look Now: Finding Under-Appreciated Opportunities in UK Small Caps
Equity

Do Look Now: Finding Under-Appreciated Opportunities in UK Small Caps

Our Richard Bullas thinks the UK small-cap market is one of the most sophisticated, diverse and dynamic investing environments in the world.

Shining the Spotlight on Domestic Mid-Cap Stocks, Despite Brexit Uncertainty
Equity

Shining the Spotlight on Domestic Mid-Cap Stocks, Despite Brexit Uncertainty

“It’s understandable that UK mid-capitalisation (mid-cap) stocks might have fallen out of favour with some investors… However, we think it is prime time to dig a little deeper into some investment themes we’ve seen at play within the UK mid-cap market.” - Paul Spencer, vice president, portfolio manager, Franklin UK Equity team

UK Equity: What Dividends Can Tell Us About UK Economic Sentiment
Equity

UK Equity: What Dividends Can Tell Us About UK Economic Sentiment

“Special dividends may indicate that companies would rather return money to shareholders than expand. There could be a lack of investment opportunities and potential concerns around Brexit and future UK economic growth.” - Colin Morton, portfolio manager, UK Equity team

Why It’s Time to Get Back to Basics
Equity

Why It’s Time to Get Back to Basics

“We think the good earnings growth so far this year provides a reasonably positive corporate earnings backdrop for the rest of the year. The earnings backdrop should play an important role in [UK] small-cap performance going forward, especially compared against the top end of the market, where the tailwind of sterling depreciation has now virtually faded.” – Richard Bullas, Franklin UK Equity team, August 15, 2017.

How Our Investment Assumptions Colour Our Mid-Cap Strategy
Equity

How Our Investment Assumptions Colour Our Mid-Cap Strategy

In a year filled with economic and political uncertainty, it remains difficult to predict what the future holds. While Paul Spencer, Franklin UK Equity team, shuns the crystal ball, he presents some base-case expectations in the United Kingdom to underpin his investment approach.

UK Election Result: Grounds for Optimism in the Medium Term?
Equity

UK Election Result: Grounds for Optimism in the Medium Term?

“The UK election result came as a shock to most observers, but early indications suggest financial markets don’t view it as an end of the world scenario. And there are indications that some positives could emerge over the medium term.” Colin Morton, vice president, portfolio manager, UK Equity Team, June 9, 2017.

UK Spring Budget: Out with a Whimper, Just as Hammond Hoped
Equity

UK Spring Budget: Out with a Whimper, Just as Hammond Hoped

The [UK] chancellor painted a becalmed picture of steady economic growth for the United Kingdom. Of course, that picture may be at odds with many people’s expectations, particularly given the likely Brexit negotiation process due to take place during that period.

The Great Sector Rotation, and the Road Ahead for UK Equities
Equity

The Great Sector Rotation, and the Road Ahead for UK Equities

In the closing months of 2016, there were big changes in some of the financial metrics that feed into economic assumptions and indeed equity valuation assumptions, and we think that sets the tone for where we move into 2017.

How the Brexit Vote Turned the Spotlight on Small-Cap Value
Equity

How the Brexit Vote Turned the Spotlight on Small-Cap Value

While we remain wary of complacency, the resilience shown by much of the small-cap universe in July and August has been impressive.

Want to Create Value? Dig Deep and Adjust Your Expectations

Want to Create Value? Dig Deep and Adjust Your Expectations

In this current environment with elevated valuations (by historical standards), a trade-off exists between earnings risk and valuation risk. These are the decisions that some investors will want to consider as they strive to produce acceptable returns.

Finding Positives in a ‘Lower for Longer’ Environment
Equity

Finding Positives in a ‘Lower for Longer’ Environment

Even if we do see interest rates rise in the United States and/or the United Kingdom—possibly before the end of this year—it doesn’t necessarily mean equity investors should panic, because we think it is something that can be absorbed.

Why Wouldn’t You Invest in Mid Caps?

Why Wouldn’t You Invest in Mid Caps?

The range of industries and exposures offered by mid-cap companies persuades us that this remains an attractive place to hunt out bargains.