Simon Edelsten quoted in Interactive Investor’s ‘‘Cockroach shares’ the pros are backing to survive market turmoil’
Goshawk’s [Simon] Edelsten picks Munchener Ruckversicherungs-Gesellschaft AG MUV2, “one of the three dominant global reinsurance companies”. Reinsurance protects companies from eventualities such as natural disasters; these have risen in recent years, pushing up the cost of that cover.
At the same time, governments have tended to reduce the amount of emergency financial aid they offer, and businesses such as Munich Reinsurance are stepping in to fill the shortfall. Moreover, as Edelsten points out, “the premiums received are now invested at higher yields than in the past, making the industry more profitable”.
…
On the whole, our experts have focused on regions other than Asia for their defensive picks, perhaps in light of the particular uncertainty around China – but Edelsten makes special mention of Singapore Telecommunications Ltd Z74. Its associate companies provide mobile services in India, Indonesia and Thailand, where mobile networks often provide the internet access for small businesses.
“We keep paying our mobile phone bills whether we are feeling flush or not; indeed we keep paying them even if we lose our job,” he argues. “We have found this a business which is stable through most political and economic turmoil.”
Read the full article here.
This research material is for distribution only to Professional and eligible counterparties as defined by the FCA and also to persons of a kind to whom it may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000, the Financial Services and Markets Act 2000 (Exemption) Order 2001 and COBS 4.12.4R. and should not be relied upon by any other persons. Therefore circulation of this research material must be restricted accordingly.
This material is provided for information purposes only and does not constitute a solicitation in any jurisdiction in which such solicitation is unlawful or to any person to whom it is unlawful. Moreover, it neither constitutes an offer to enter into an investment agreement with the recipient of this document nor an invitation to respond to it by making an offer to enter into an investment agreement. This research material may contain forward-looking information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition.
Moreover, certain historical performance information other investment vehicles or composite accounts included in this material and such performance information is presented by way of example only. No representation is made that the performance presented will be achieved, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of October 2024 and may change as subsequent conditions vary. The information and opinions contained in this research material are derived from non-proprietary sources deemed by the Firm to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not indicative of future results. The value of your investment may go down as well as up, and you may not receive upon redemption the full amount of your original investment.
The Investment Manager is authorised and regulated by the Financial Conduct Authority and registered in England and Wales (Company Number: OC304213). Its registered office address is 6 Stratton Street, Mayfair, London W1J 8LD United Kingdom.