Second-line large and mid caps offer best returns

ON EUROPE

Ian Ormiston is investment manager at Ignis Asset Management on Europe

For more information on Ignis, search Adviserhound.com Two themes of increasing concern for us are margin squeeze in the non-financials and cash distribution disappointments from banks. As the pace of economic growth moderates globally and headwinds facing consumers increase, it is difficult for companies to continue to expand their profit margins and, in some cases, firms may be squeezed by rising input costs. As a result, we have shifted away from companies with little pricing power, such as cement-makers or fertiliser manufacturers. For the banks, the final Basel III proposal...