Miton Global Opportunities deputy manager Charlotte Cuthbertson is heading into 2022 with a cash overweight and is looking forward to spending Christmas with some new additions to the family
What have been your top and worst-performing fund picks during the year?
River and Mercantile Microcap has been our best performer this year. This is a very interesting trust which specialises in microcaps in the UK. When the trust’s NAV exceeds £100m, it hands back the excess to shareholders at NAV. With the trust having performed very well, we have received several of these cash returns.
Our uranium exposure has also been a boon for performance. After the accident at Fukushima in 2011, many Western countries began quietly closing down their nuclear power stations which reduced the demand for uranium. More recently, however, we’ve seen a focus on renewable energy. There is now an acceptance that wind and solar alone will not get us to our carbon targets and nuclear energy needs to be a core part of our energy infrastructure.
In terms of poor performance, Macau Property has had a difficult year. China has been trying to stop speculation in the property market and as the trust owns high-end flats, this has impacted the trust. More recently the government announced measures that will give them more control over local casinos which undermines the draw to Macau. This is our only exposure to China and the discount does reflect the issues with the trust.
How do you expect the Santa rally to play out this year?
My screens are a sea of red at the moment so I think the Santa rally may be brought low by the impact of Covid this year. This will largely depend on whether this new variant turns out to be as infectious and/or deadly as expected and how well the vaccinations protect us. If we are looking at returning back to lockdowns and restrictions, I think markets will be very weak into 2022. Otherwise, they are likely to remain subdued but mildly positive. We still have the stimulus in the system and therefore markets are buoyed by the amount of money sloshing around the system.
What are your biggest over and underweights heading into 2022?
Probably our biggest overweight is cash. We have been trimming a lot of our holdings that got very excited during the year. In terms of underweights, we have been trimming anything that has exposure to highly rated stocks. With central banks signposting they are likely to tighten monetary policy next year, rising interest rates are likely to undermine the high ratings given to these companies.
How much have you been meeting fund managers face-to-face this year compared to last?
We have certainly been trying to meet people more face-to-face. Although online meetings can work well, especially for people who you know well, our preference is to meet in person if it is a first meeting. Conversations can flow easier when everyone is in the same room and there’s the added bonus that you don’t have to worry about the risk of failing technology.”
How have in-person meetings changed compared to pre-pandemic times?
With people in the office less it can be more difficult to find a day and time that suits everybody, so we have seen more hybrid meetings.”
Are you going to have an office Christmas party this year? If so, what is the plan?
We’re not having a Christmas party this year but we had a post lockdown party so that everybody could see each other again after such a long time away from the office.
How different are your Christmas plans going to be in 2021 compared to last year?
Last year was difficult with the restrictions so it was a very quiet Christmas with myself and my mum in Yorkshire. This year I have a new puppy and a new nephew so looking forward to it being a lot of fun, albeit more chaotic!!
What’s on your Christmas wish list?
I like a gift that lasts all year, like a flower or wine subscription. And continuing good performance for Miton Global Opportunities of course!
