Four growth themes for your portfolio

SPECIAL FOCUS

A focus on quality businesses during times of heightened economic uncertainty tends to pay off in the long run, according to Lode Devlaminck, CIO of Hermes Global Equities Advisors and lead portfolio manager of the Hermes Global Equity Select fund. Here he outlines some of his key themes.

Risk assets performed well in September as aggressive liquidity injections announced by the Fed and the ECB helped drive appetite for riskier value stocks. Emerging markets significantly outperformed developed markets and value style stocks dominated quality and defensive momentum during the month. The economic stimulus packages proved beneficial to the materials sector as the previously out of favour metals, mining and construction materials industries led the charge. Stocks were also helped by recent data supporting a continued gradual recovery in the US housing market. Financial...