Premier Miton's Gervais Williams: 'Long period' of high beta underperformance on the cards

UK stockmarket to beat US

clock • 2 min read

Premier Miton’s Gervais Williams has warned that as headwinds including a slowdown in the Chinese economy become more apparent, a “long period” of high-beta underperformance looks likely.

Williams, who is co-manager of Premier Miton's Diverse Income Trust and MicroCap Trust, said that going forward in 2022, the current slowdown in the Chinese economy will prove to be "structural" in nature. He said: "Just as happened in Japan in 1989, China's giant debt burden combined with its aging demographics will lead to a sudden cessation of its growth trajectory, in our opinion. "Alongside, after the pandemic stimulus, long-dated bond yields are now close to zero, so they have very little scope for any further appreciation in asset valuations either. At some point, the favourabl...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Industry

Door's Shilpan Patel: Culture takes centre stage

Door's Shilpan Patel: Culture takes centre stage

Fund selectors increasingly aware of poor culture

Shilpan Patel
clock 27 June 2025 • 3 min read
Artemis' Gent on how active houses can succeed in an evolving marketplace and strategies for growth

Artemis' Gent on how active houses can succeed in an evolving marketplace and strategies for growth

Time of rapid evolution for the wealth and intermediary sector

Katrina Lloyd
clock 26 June 2025 • 7 min read
Winners Gallery: Fund Manager of the Year Awards 2025

Winners Gallery: Fund Manager of the Year Awards 2025

Ceremony on 19 June

Investment Week
clock 24 June 2025 • 1 min read
Trustpilot