ADVERTORIAL FEATURE
Annual past performance to 31 December each year ( net %)
2017 2018 2019 2020 2021
The Monks Investment Trust 35.0 -4.8 32.4 42.1 1.2
Source : Morningstar , share price , total return
Past performance is not a guide to future returns .
For investors , spotting mispriced growth relies on seeing the big picture and pinpointing what it is that could transform expectations . This applies even when prices are rising . “ While we can fret about inflation ’ s impact on asset values , the primary thing to focus on is the operational performance of individual assets .” After all , as MacColl points out , for the likes of Amazon and Anthem , growth is not driven by the existence of investors ’ spreadsheets that try to pinpoint how businesses might fare in a higher or lower interest rate environment . “ The vast bulk of the businesses we ’ ve invested in for clients are asset light . They ’ re very scalable . They typically have large margin profiles and good pricing power .” This makes them good candidates for coping with a more inflationary environment .
“ Completely overwhelmed ” MacColl is sceptical of the view that growth assets have outperformed over the past 10-15 years because we ’ ve been in a declining interest rate environment . “ An element of that will have played through into valuations ,” he concedes but , “[ that factor ] has been completely overwhelmed by the fact that we have seen some enormously successful businesses bursting through because of change .” The digital revolution and the rebirth of China as an economic
/ 22 / trustnet . com