PA Congress Insight: Don’t disregard banks when looking for quality

Added 13th July 2016

In aggregate, the market is starting to look expensive, but, argues David Moss, there are still high quality businesses available on good prices, just not in the traditional areas.

A director of European equities at BMO Global Asset Management, Moss argues that, while anything that fits into that obvious quality area, the classic bond proxies, are looking very expensive, increasingly it makes sense to be less proscriptive about where you look for quality.

“We think you can find quality in many areas outside of those traditional, but you can buy them at much better prices because investors don’t want to touch them – banks are a good example.”

According to Moss, more than 25% of his portfolio is in financials, much of this in banks.

“We think there are a lot of good businesses out there that just happen to be banks,” he said.

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About Author

Gary Corcoran

Director

Portfolio Adviser & International Adviser

Gary Corcoran is the editorial director for Portfolio Adviser, International Adviser and Fund Selector Asia. He is also programme director and chairman for events hosted across the UK, South Africa, Middle East and Asia. Gary joined Last Word Media in August 2006 as the launch editor of Portfolio Adviser, having previously worked at Bacon & Woodrow, Legal & General, FT Business and MSM International.

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