With higher interest costs and slower growth, fund managers are taking notice. This is where they’re rebalancing.
are on the chopping block as increased interest costs and slowing growth weigh on forecasts, say fund managers, while listed equity is looking less attractive. Companies that took on debt during low-interest rates are also being reconsidered.
He adds that the “sharp” post-results rally in James Hardie Industries offered the chance to “position lower”. “We see the business executing well on its premiumisation strategy. However, believe it will not be immune in calendar year 2024.” Miller says ECP aims for high-quality franchises in the growth phase of their lifecycle. It has sold Apple, viewing it as a replacement market business, trading at a premium relative to its forward growth prospects.
“We consider our selling to be in good company given it coincides with a raft of insider selling from CEO Tim Cook and CFO Luca Maestri.”AdvertisementAmid a weakening economy and high interest rates, Talaria is deliberately avoiding leverage in its investment strategy, Padowitz says. “Even in the absence of changes in operating profitability, this can have a substantial impact on net income.”
But, they add, with a dividend yield of 1.5 per cent on the S&P 500, investors need 4.5 per cent of annual earnings growth before their equity returns even match those of low-risk bonds.Reducing exposure to industrial, utilitiesSelling: industrials and utilities