Bottom-up investors excited by valuations

ON UK INCOME

JAMES LOWEN, senior fund manager of JOHCM UK Equity Income fund on UK Income

A mismatch exists between the top-down macro and the bottom-up micro environment. Despite encouraging data from the UK and Germany, the last few months have seen a series of negative macroeconomic developments, all of them effectively adding up to a significant and possibly premature withdrawal of the economic stimulus. While greater austerity measures in the UK are welcome, the collective effect of the tightening put in place across Europe will inevitably slow global growth rates. However, there is a reasonable chance the watering down of the Basel III capital requirements for the Eu...