Will ‘Thematic’ Investments Drive Growth in 2017?

Investors looking for equity growth in the Brexit and Trump era should consider ‘theme-based’ opportunities rather than focusing too heavily on broad financial markets, according to Sanjay Rijhsinghani, Partner at LGT Vestra. He was speaking at an investment and tax seminar in Horsham organised by Sussex-based Carpenter Box Wealth Management.

Sanjay said company earnings in the third quarter of 2016 showed topline growth for the first time in over two years and that macro-economic factors were moving in favour of equities.

“Our thinking at the moment is to take a thematic approach to investments rather than looking at say the US, Japan or European markets,” he said. “So, for example, we see growth opportunities in equities linked to infrastructure because of the payback this activity delivers to governments and to operating companies alike.

“We also like financials as a result of the clean balance sheets of banks, a steepening yield curve and the move to a transaction-based cashless society, which reduces costs for banks. And we see positive prospects for a technology sector that is speeding up innovation lead times.”

Simon Fox, Managing Partner at Carpenter Box Wealth Management, underlined the need for coherent investment strategies in an era of historically low interest rates, citing the enduring appeal of pensions and focusing on the tax advantages of Enterprise Investment Schemes.

Stuart Noakes, Partner and Head of Tax Services at MHA Carpenter Box, urged delegates not to overlook the value of individual tax allowances that could deliver up to £33,000 of tax free income each year, while also outlining steps to mitigate inheritance tax through business property planning.