In the first of a series, we ask fund managers and selectors where they are still finding value after this year's equity rally.
Jan Luthman Co-head of the Liontrust Macro Equity Income fund Pharmaceuticals There is still significant value within the pharmaceuticals sector, nicely encapsulated by Merck’s announcement in May of a $15bn share buyback programme. The programme will be funded through the issue of a range of bonds with varying maturities and coupons from 0.7% to 4.15% (and some floating rate). The company’s guidance for 2013 earnings per share of $3.50 represents an earnings yield of 7.4%. The transaction does not grow Merck’s business, but it does enhance earnings per share and suggests th...
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