• Home
  • Multi-Asset
  •  
    Retirement
    • Pensions
    • Income
    • Investment
    • Regulation
    • Estate planning
    • Equity release
  •  
    Your profession
    • Adviser tips
    • Business models
    • Companies
    • People
  • Regulation
  • Tax planning
  • Protection
  • Diversity
  • Events
  • Whitepapers
  • Industry blogs
  • EM and Asia spotlight
  • Newsletters
  • ESG spotlight
  • Sign in
  • Events
    • Upcoming events
      event logo
      Professional Adviser's Working Lunches in partnership with Orbis Investments - 2019

      Join us in March for the Professional Adviser Working Lunch series in partnership with Orbis Investments.

      • Date: 05 Mar 2019
      • Knutsford, Leeds, Surrey, Bristol
      event logo
      Professional Adviser Working Lunches 2019 - Baillie Gifford & First State Investments

      Professional Adviser is delighted to announce the launch of the new Working Lunches in partnership with Baillie Gifford and First State Investments. Travelling across the UK to provide valuable market insights for Senior Financial Advisers.

      • Date: 13 Mar 2019
      • Southhampton, Worcester, Durham, Norwich, Liverpool, Exeter, Sheffield, Leicester, Nottingham
      event logo
      Professional Adviser 360 2019

      The highly anticipated Professional Adviser 360 conference is taking place on 25th April 2019 at The Brewery in London.

      • Date: 25 Apr 2019
      • The Brewery Chiswell Street London EC1Y 4SD, London
      event logo
      Fund Manager of the Year Awards 2019

      The 2019 Fund Manager of the Year returns on Thursday 27th June 2019, Grosvenor House Hotel, London. Save the date.

      • Date: 27 Jun 2019
      • Grosvenor House Hotel 86-90 Park Lane Mayfair London W1K 7TN, London
      View all events
      Follow our events

      Sign up to receive email alerts about our events

      Sign up
  • Whitepapers
    • Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Sign in
  •  
    •  

      Personalise your on site experience

      Download and use the apps

      Access your subscription from outside of the office

      Get relevant news and insight straight to your inbox

      Sign in
     
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • RSS
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Industry blogs
  • EM and Asia spotlight
  • ESG spotlight
Professional Adviser
Professional Adviser
  • Home
  • Multi-Asset
  • Retirement
  • Your profession
  • Regulation
  • Tax planning
  • Protection
  • Diversity
 
  •  

    Personalise your on site experience

    Download and use the apps

    Access your subscription from outside of the office

    Get relevant news and insight straight to your inbox

    Sign in
 
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Professional Adviser

Consumer retail sector remains in deep trouble

  • /home/progs/thaira/archive/invweek/mark/uk/200004/17uk01.xml
  • 01 January 2000
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
0 Comments

The growth market faces a tough year as UK fund managers decide whether to put their faith back in o...

The growth market faces a tough year as UK fund managers decide whether to put their faith back in old economy stocks or ride out the volatility and high valuations of tech firms.

Retailer Tesco is one firm that is trying to bridge the gap between the two economies. The company, which announced full-year figures last week, has been busy expounding the success of its internet home shopping service, TescoDirect. The online grocery now has estimated annual sales of £125m, making it one of the world's largest. The online venture has been so successful that Tesco is expected to float its e-commerce arm and plans to invest around £35m on developing its business to business and business to consumer division this year.

However, fund managers are sceptical over whether these statistics indicate an expanding customer base for UK retailers or if they are creating more competition in a sector already operating under cutthroat margins.

Robert Moss, fund manager of Invesco's UK Growth Fund, says: "When a company like Tesco trumpets its results you have to look at factors like whether they are genuinely getting new sales or if it is the same customer using a different method of transaction."

Moss also points out that Tesco is a best case scenario, having been a growth stock in a non-growing sector.

Other companies that have been slower on the uptake, such as Marks & Spencer, may not fare as well and could find that simply going online is not the answer, especially now as internet fever wanes.

Old economy stocks, such as retailers, are increasingly playing catch-up in the internet stakes. This reflects the dilemma facing fund managers this year. While many accept that volatility is inevitable in a post-exuberant market, there is still hesitation on whether to favour value or growth.

Moss says: "Until now it has been hard to discern the winners from losers in a market that seemed to decide that everyone was a winner in the tech sector." He adds that he has been watching companies on the business to business level, who develop software and technology for the internet.

"If you look at the fundamentals, these are the companies that will be around long after the faddish business to consumer companies have run out of steam," he says.

Moss was upbeat about the long-term prospects of software and technology firms such as the Easdaq-listed Autonomy and Arm Holdings. Arm, the microchip manufacturer, announced quarterly profits that were significantly ahead of City expectations last week and Moss believes its strength is in licensing to other companies. This provides a far more tangible picture of the kind of client base and strategy a firm like Arm is building.

But Moss also feels stock valuations are generally stretched, a view echoed by Flemings' Global Strategist, Chris Tracey, who believes the market has "lost its way completely."

He says: "The second half of 1999 was easy - it was growth, growth, growth. The last three months has seen the market swinging from tech to value stocks and back again. This indicates a market that is in need of clear leadership."

Ali Bernat

Related articles

  • Government launches mid-life MOT website
  • Perspective buys northwest England IFA Investment Principles
  • Government will not 'force pace of change' in AE
  • AIG Life pays 99% life claims
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

More news

  • Retirement
Government launches mid-life MOT website

First mentioned in Cridland Report

  • 20 February 2019
Ian Wilkinson
  • Companies
Perspective buys northwest England IFA Investment Principles

Second acquisition of 2019

  • 20 February 2019
Guy Opperman
  • Regulation
Government will not 'force pace of change' in AE

Guy Opperman has rejected calls to speed up changes to auto-enrolment (AE) despite increasing pressure to boost contribution rates and overall savings pots.

  • 20 February 2019
Abbie Knight
  • Your profession
Abbie Knight: Get your business ready for the £5.5trn wealth transfer

Four key areas to focus on

  • 20 February 2019
  • Insurer
AIG Life pays 99% life claims

And 94% for critical illness

  • 20 February 2019
Back to Top

Most read

Woman and apps
How online 'nudges' are encouraging women to invest
Schroders and Lloyds unveil financial planning business
Abbie Knight
Abbie Knight: Get your business ready for the £5.5trn wealth transfer
Sean Kulan: How prepared are solo-regulated firms for SM&CR?
CEO of the IA Chris-Cummings
IA launches communication guide in response to FCA criticism
  • About Us
  • Contact Us
  • Marketing solutions
  • Terms and conditions
  • Privacy and Cookie policy
  • RSS
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017