Sterling, short-dated credit, financial debt, European equities, global healthcare, US technology and a responsible approach to investing are all identified as the key opportunities for growth in Coutts’ 2017 Investment Outlook ‘Timeless Principles in a Changing World’.
While Sterling fell by about 15% in the four months after the UK voted to leave the European Union, Coutts expects to see the exchange rate moving back towards its longer-term average.
Short-dated credit, asset backed securities (ABS) and subordinated financial debt are also favoured opportunities for 2017. Contrary to popular opinion, the vast majority of ABS sailed through the financial crisis with minimal (and in some cases close to zero) defaults and the Coutts investment team considers them to provide good value going forwards, over-compensating investors for default risk and paying attractive incomes.
Elsewhere, European equities, the healthcare sector and US technology companies are all seen as key to success this year. Coutts also believes that changing demographics are providing interesting long term trends and opportunities across a number of sectors including technology where a number of ‘old technology’ firms are reinventing themselves and launching new products, with the trend set to continue.
Read the fulll report on the Coutts website or download it here [PDF 930KB]