Sterling weakness, inflation and mid cap M&A

By Mark Martin & Holly Cassell, Neptune

The UK economy has performed ahead of expectations since ‘Vote Leave’ in June 2016, supported by looser monetary policy and weak sterling. However, with inflation beginning to come through and political uncertainty remaining, what is the outlook for 2017?

Watch Mark Martin, manager of the Neptune UK Mid Cap fund, and Holly Cassell, assistant manager, discuss the potential clouds on the horizon and how the portfolio is positioned as a result. With a focus on downside protection, the fund is one of the top performers in the IA UK All Companies sector since its launch in December 2008, significantly outperforming the FTSE 250 Index.

Investment risks

Neptune funds may have a high historic volatility rating and past performance is not a guide for future performance. The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. A majority of the investments made by the Fund may be in securities of small and medium sized companies. Such securities may involve a higher degree of risk than would be the case for securities of larger companies. References to specific securities are for illustration purposes only and should not be taken as a solicitation to buy or sell these securities. Please remember that forecasts are not a reliable indicator of future performance. These are Neptune’s views and as such this document is deemed to be impartial research. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. The content of this article is formed from Neptune’s views and we do not undertake to advise you as to any change of our views. Neptune does not give investment advice and only provides information on Neptune products. Please refer to the Prospectus for further details.