Luxury Brands manager does not fear austerity

The luxury goods sector will not suffer as a result of a global environment of austerity, says the manager of the Swiss & Global's Luxury Brands fund.

Manager Scilla Huang Sun says: "Even in difficult times, the rich have some money to spend, and the luxury goods industry is one of the few that has pricing power. "Luxury goods makers can increase prices faster than consumer price inflation." Huang Sun is rotating back into accessories, watches, jewellery, and shoes from defensive beverage and cosmetic stocks that were more resilient in the crisis. The manager of the $60m (£40m) portfolio has reduced drinks makers - including Pernod Ricard and Campari - and cosmetics from a combined 35% to 25%. She has increased cyclicals - inc...