What makes the US the world's strongest stock market? While many attribute it to leading technology, research facilities, and abundant natural resources, Comgest believes the true driver of US growth is labor productivity. Our US Equities strategy aims to leverage this efficiency by focusing on companies that achieve more with fewer resources.

Investor focus in Japan has recently shifted towards cyclical stocks like automotives, commodities, and financial services, driven by a weak yen and rising global interest rates. However, Comgest believes that companies involved in structural growth trends, such as digitalisation and ageing populations, are better positioned for consistent long-term returns.

In 2024, several companies in our Comgest Pan Europe Equity portfolio encountered challenges due to weak consumer spending in China. Despite this headwind, growth drivers, including healthcare, digitalisation and artificial intelligence provided significant tailwinds for our strategy. By focusing on resilient performance in the face of macroeconomic uncertainties, our investment approach aims to harness these underlying growth trends.

The US stock market has become increasingly dominated by just a handful of stocks, driven by the rapid rise of artificial intelligence. This concentration raises questions about diversification and whether this narrow collection of companies can continue to outperform in the future. At Comgest, we go beyond index performance to offer investors exposure to leading quality growth companies that benefit from long-term growth trends.

In 2011, it was revealed that Olympus, the Japanese optics manufacturer, was involved in a $1.7 billion fraud, one of the largest and longest in corporate history. The company's CEO, Michael Woodford, was among the first to raise the alarm and was dismissed after just two weeks in the role. Although Comgest did not hold Olympus in 2011, we believe the lessons learned from this scandal can guide future investment decisions.

Around the world, people are living longer. As societies age, the demand for healthcare services is likely to grow. That’s why we view European medical devices, pharmaceutical products and healthcare technology as promising long-term investment opportunities.