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15 May 2024 | Simon King

FT Adviser

Geo-politics matter very much to us when constructing portfolios but much more at a company specific level rather than from an asset allocation perspective.

David Thorpe from FT Adviser spoke to Simon King this week about our approach to geopolitical risk "We believe it is important to not assess things from a global or broadbrush perspective since this can lead to investing by proxy ie if I get the general point right then it doesn’t really matter which investment I make since if it is in the right area it is bound to go up. We prefer to factor geopolitical change into the way we look at every potential and existing investment on an individual basis. A good example would be the Biden-led Inflation reduction Act which has already produced significant new build projects in the US, but this has been very specific both geographically and by sector so it is vital to understand which companies have real exposure to these areas. 2024 is a year of election in the USA, India, Indonesia, UK which will have a huge bearing on industrial, health and fiscal medium and long term outlook. Our task is to ascertain what differences the potential outcomes will make at a micro level.”

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