“Good brands can last decades, and these companies are full of them. Each has a great track record of dependable growth and whilst not immune to recession, each of them is expected to make at least a billion pounds more profit in 2017 than they did in 2007, before the financial crisis,” he said.
Finally, selecting companies with recurring revenues is an integral part of the fund’s current investment strategy.
“We would class over two thirds of the stocks in the portfolio as having substantial quantities of recurring revenues,” he said, “be it from the sale of branded consumer goods, year in year out to the same consumers, to subscriptions to journals or regular advertising exposures on property portals. In the case of some stocks in the fund, the services they provide are so embedded into their customers daily workflow, Fidessa, or Sage for instance, that the customer is most unlikely to switch provider.”
