Gary Potter and Rob Burdett

“Political log-jams in Europe and the US caused sharp falls in equities in August despite only minor changes to most economic data. Our equity positions fell, but with most focused on companies with strong balance sheets and strong market positions, many outperformed the falling markets, particularly Findlay Park in the US, Majedie UK Focus, and all three of our European holdings. It remains to be seen whether the risk-off trade in itself causes consumers and corporates to retreat enough to trigger a genuine recession, but for now we believe equities offer good relative value and stick with our portfolio mix.”