Table of contents
Executive Overview 3
Key themes 12
1) NJA and the emerging market consumer 13
2) Focus on growth 27
3) Artificially low real rates 54
4) M&A could pick up significantly 62
5) Pricing power 68
6) China as a competitive threat 77
Sectors 82
Overview 83
Cyclicals—remain benchmark 93
Corporate spend plays—advertising, software, hotels 102
Autos—upgrade to overweight 114
Metals and mining—remain overweight 123
Technology—overweight semis and software 135
Luxury Goods—reduce overweight 149
Consumer staples—remain overweight 153
UK real estate—upgrade to overweight 176
Banks—a small overweight 180
Insurance—small overweight 208
Capital Goods—reduce underweight 215
Utilities—reduce underweight 225
Pharma—downgrade to underweight 232
Integrated oil—underweight 243
Retail—remain underweight 253
Telecoms—downgrade to benchmark 263
Style 273
Appendices 286