HALF-YEARLY FINANCIAL REPORT 2024 - Flipbook - Page 9
THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 7
Funding for these purchases has come mainly from reductions
in stocks that have performed well over extended periods,
including Marks & Spencer, Centrica and BAE Systems.
OUTLOOK
Across global markets, risks remain high. Multiple volatile
geopolitical situations exist, with one of the biggest
uncertainties being whether the recently announced stimulus
measures in China will be sufficient to reignite growth. The
re-election of Donald Trump also increases the risk of global
trade wars. Closer to home things appear more sanguine.
With Chancellor Reeves’ inaugural budget now in the past, UK
consumers can plan their finances with greater certainty and,
in any event, they are in better shape compared with a few
years ago. We are also considering the increase in employer
National Insurance rates, which are a modest headwind for the
more domestically orientated holdings in the portfolio. That
said, political stability combined with lower levels of inflation
should promote higher levels of corporate investment. We
are finding many opportunities to invest in high quality
businesses in the UK market at attractive valuations – both
more UK focused companies like Dunelm and Rightmove,
and more global UK listed companies such as Haleon and
Compass. While keeping an eye on the macroeconomic
outlook, we remain focused on bottom-up stock selection
and constructing a diversified portfolio.
IMRAN SATTAR
PORTFOLIO MANAGER
EMILY BARNARD
DEPUTY PORTFOLIO MANAGER
18 NOVEMBER 2024
