196. Consumer demand robust despite rising prices

Ben Peters, co-manager of TB Evenlode Global Income, discusses all things inflation: its impact on individuals, companies, sectors, and different geographies. He explains why demand has remained surprisingly robust, despite the continued rise in prices and why some companies are being slow to pass on their costs to their customers. He also discusses his team’s recent trip to the US and pent-up demand for human contact and tells us how the fund has 20% exposure to Asia but only a couple of holdings in Asian companies.
Apple Podcast Spotify Podcast

TB Evenlode Global Income managers Ben Peters and Chris Elliott believe the market fundamentally underestimates the value of high-quality businesses because of its obsession with short-term events. The fund has four key objectives: grow the dividend on a consistent basis, compound returns at a high annual rate, outperform major global market indices over the long-term and generate returns with lower volatility and downside risk.

What’s covered in this episode:

  • How inflation is impacting companies in different sectors
  • Why companies are starting to have problems supplying goods
  • The impact of China’s lockdown on networking hardware and software company Cisco
  • Why demand is staying surprisingly robust in the face of rising prices
  • Why companies are being slower than usual to pass on costs to consumers
  • Firms that can thrive in any environment
  • Why meeting companies on the ground is so important for investors
  • How the fund has decent exposure to Asia – without owning many Asian’ companies
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

More Episodes