Paul Craig, manager of the Old Mutual Cirilium Portfolios, discusses a recent trip to northern Italy, where he visited three portfolio companies and gained some perspective on the macroeconomic outlook
With politics dominating the headlines of late – amid elections in France, Iran, South Korea and the UK; political controversy in the US and Brazil; and not to forget Brexit – it can often be difficult to see the wood for the trees.
And so I had the perfect excuse for a European road trip; or at least a quick excursion to northern Italy, with one of our portfolio managers, to visit three Italian companies we hold: brake manufacturer Brembo, luxury apparel maker Moncler and sportscar maker Ferrari. So what did we learn? Each one of these companies is a leader in its field. All are international businesses that are looking to expand further.
On the political and economic outlook, while we were given more detail on the views held in this part of Italy, and within the three companies, we left with the overall picture no clearer. But because these groups base their strategies around multiple outcomes, rather than on a single event – much as we do in the Cirilium portfolios – this is less important to their success.
Despite their leadership positions, with international customer bases, Brembo, Moncler and Ferrari are anything but complacent. This should serve as a useful reminder that while investors can influence short-term performance, based on speculation, it is real businesses that drive long-term returns, based on fundamentals.
In addition to taking my mind off the UK general election, the trip served as a useful reminder that while financial markets may fret about political uncertainty, we invest with first-class portfolio managers who hold high-quality businesses. These businesses are constantly looking at ways to develop and improve, irrespective of the political backdrop.
Nine year track record
For the last nine years, portfolio manager Paul Craig has achieved a personal best in his efforts to help investors to stay on track. So why not go the extra mile for your clients and find out more today.
Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rates may cause the value of overseas investments to rise or fall.The Old Mutual Cirilium Multi-asset portfolios are managed by Old Mutual Investment Management Limited. Old Mutual Investment Management Limited replaced Intrinsic Cirilium Investment Company Limited as the Authorised Corporate Director of the Fund on 1 December 2014. This communication is issued by Old Mutual Global Investors (UK) Limited (trading name Old Mutual Global Investors), a member of the Old Mutual Group. Old Mutual Global Investors is registered in England and Wales under number 02949554 and its registered office is 2 Lambeth Hill London EC4P 4WR. Old Mutual Global Investors is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with FCA register number 171847 and is owned by Old Mutual Plc, a public limited company limited by shares, incorporated in England and Wales under registered number 3591 559. This communication has been prepared for general information only. It does not purport to be all-inclusive or contain all of the information which a proposed investor may require in order to make a decision as to whether to invest in the Fund. Nothing in this document constitutes a recommendation suitable or appropriate to a recipient’s individual circumstances or otherwise constitutes a personal recommendation. No investment decisions should be made without first reviewing the prospectus and the simplified prospectus of the Fund which can be obtained from www.cirilium.com OMGI 06_17_0179