Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
Press Release
Schroders’ Virginie Maisonneuve
identifies key drivers for success in 2012
24 January 2012
Head of Global and International Equities Virginie Maisonneuve, shares her Top 10 Tips for Global
Equities success in 2012.
1. Volatility will continue to be driven by Europe and sovereign issues; the fear of China’s
hard landing; and the impact of many elections in the world.
2. Maintain a balanced portfolio anchored around growing defensive holdings in staples
and health care and quality cyclicals, especially in energy and materials.
Do not get out of cyclical stocks all together.
3. Make sure you own enough US stocks. The US is recovering slowly but is ahead of
Europe. 4. Be prepared to add to emerging markets as the year progresses. Monetary policy
should loosen as inflation trends downs. Gain exposure either through stocks listed in
emerging markets or via companies in developed markets with large exposures to
emerging markets. Get the best stocks wherever they are listed and don’t contain
yourself to one region.
5. Test your stock earnings growth assumptions rigorously. Be ruthless! Consider
current stock prices compared to 2008 valuations and margins
6. Take advantage of extreme valuations: for example, equity risk premium in Europe is
at an all-time high. When markets are very gloomy and discount the worse, the risk is on
the upside.
7. Stick to fundamentals: when fear runs equity markets, the disconnect between prices
and fundamentals can offer great opportunities
8. Watch currencies: They influence competitiveness. A weak Euro is good news.
9. Monitor the “EPF” i.e. the balance sheets of the ECB, PBOC and the Fed, as well as
sovereign bond issues.
10. Be prepared to act on mini cycles: The situation in Europe will be uncertain for a while
and equity markets will move on macro economic news.
Virginie Maisonneuve, Head of Global and International Equities, comments:
“We believe volatility will remain well into the first quarter of this year as the markets gauge the
resilience of the European and global financial system, and how it will cope with potential additional
shocks. There will be three main causes for the continuing volatility: first, the future of Europe; second,
the US elections; and third, the nature and effect of the slowdown in Chinese growth.
“We continue to pursue companies which, irrespective of the short-term market uncertainties, are
benefiting from longer-term global trends and show strong global competitiveness. These include
companies benefiting from the mitigation of climate change, growth in emerging market demand and
demographic trends. These trends will continue to shape the global economy throughout 2012.”
Schroders plc
Registered office at above address
Reg. 3909886 England
1
For your security, communications may be taped or monitored
Schroder Investment Management Limited
31 Gresham Street, London EC2V 7QA
Telephone +44 (0)20 7658 6000 Fax +44 (0)20 7658 6965
www.schroders.com
Schroder’s Global Equities business manages £10.7 billion (as at 30 September 2011) of funds on
behalf of clients globally.
For Virginie's full outlook article and video visit http://bit.ly/w6dvnC / http://bit.ly/A0xPjB
-EndsFor further information, please contact:
Estelle Bibby – Institutional PR
Tel: +44 (0)20 7658 6000 / publicrelations@schroders.com
Georgina Robertson – International PR
Lauren Stewart – Intermediary PR
Caroline Smith – Broadcast & Social Media
Notes to Editors
For trade press only. To view the latest press releases from Schroders go to:
http://ir.schroders.com/media
These are the views of Virginie Maisonneuve and may not necessarily represent views expressed or
reflected in other Schroders communications, strategies or funds.
Schroders plc
Schroders is a global asset management company with £182.2bn (€211.6 billion, $283.9 billion) under
management as at 30 September, 2011. Our clients are major financial institutions including pension
funds, banks and insurance companies, local and public authorities, governments, charities, high net
worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate
from 32 offices in 25 countries across Europe, the Americas, Asia and the Middle East. Schroders
has developed under stable ownership for over 200 years and long-term thinking governs our
approach to investing, building client relationships and growing our business.
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Schroders plc
Registered office at above address
Reg. 3909886 England
2
For your security, communications may be taped or monitored