Three high-quality global companies for growth

James Harries, a senior fund manager at STS Global Income & Growth Trust highlights three favourites.

Dettol original liquid, alongside Air Wick, Vanish, Nurofen, Gaviscon and Cillit Bang, health and hygiene products, produced by Reckitt Benckiser Group Plc, in an arranged photograph in London, U.K., on Wednesday, Oct. 14, 2020. Reckitt are due to report third-quarter sales on Oct. 20. Photographer: Hollie Adams/Bloomberg
(Image credit: Hollie Adams/Bloomberg via Getty Images)

The STS Global Income & Growth Trust follows a distinctive quality-focused, conservative investment style. We try to consider the downside to investments as much as the potential opportunity and to produce good risk-adjusted returns balanced between income and capital growth. We believe this approach is especially relevant today given that we consider the economic outlook to be murky at best, driven by the very material and rapid rise in interest rates around the world, and still elevated equity valuations, notably in the US.

In this context, we want to invest in companies that are predictable, boast well-entrenched competitive advantages, and have limited requirements for capital when growing their businesses. Such companies tend also to exhibit attractive margins, allowing them to weather more challenging economic environments, especially when combined with a generally higher level of inflation, as we see today.

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James Harries
Contributor

James Harries is the Senior Fund Manager responsible for the Trojan Global Income Strategy. He has over 20 years of investment experience and has managed global equity portfolios since 2002. James is the manager of the Trojan Global Income Fund, co-manager of the Trojan Ethical Global Income Fund and was awarded management of STS Global Income & Growth Trust in November 2020.