High-quality firms the key to top returns for UK equities investing

ON UK GROWTH

Legal & General's Robert Churchlow says UK growth will be driven by quality stocks.

There are some exciting opportunities for UK equity investors. We highlight investing in high-quality companies with sustainable competitive advantage. We have invested in firms with long track records of creating value for their shareholders where business models are robust. Companies that have been overlooked somewhat in the recent market rally include Imperial Tobacco, Reed Elsevier and GlaxoSmithKline. Throughout the crisis, companies cut costs significantly to weather the downturn. As a result, well-managed companies now find themselves with strong balance sheets and high cashflows....