Member Article

Region’s businesses told to prepare for growth

A leading investment specialist has told North West businesses that the UK economy is now experiencing the strongest growth of any developed economy in the world - and that growth would not be confined to the South East.

Oliver Stones, a senior investment manager with Quilter Cheviot Investment Management, told finance professionals that the economy faced a ‘surprisingly’ sunny outlook and that regions such as the North West looked set to benefit from the upturn in fortunes.

Mr Stones added that the indications were that the growth was not just being driven by consumer expenditure but by capital expenditure and by business investment. He said that the UK could expect growth to accelerate in the second half of the year.

Mr Stones is a member of the UK Corporate Bonds working group which was instrumental in setting up the Retail Bond market on the London Stock Exchange.

Working from an office in Jersey in the Channel Islands, he runs bespoke fixed income portfolios for institutional clients, charities and pension funds, as well as bespoke multi-asset portfolios for private clients.

He gave finance professionals his upbeat message at a series of seminars held in Manchester, Liverpool, Chester and Morecambe.

Mr Stones said: “We are witnessing a pretty sunny economic outlook – and it’s the first time we’ve been able to say that for six years.

“We believe the second half of 2014 will see growth really accelerate. We also believe that growth will not be confined to London and the South East but that businesses of all kinds across the North West should also see an upturn in fortunes.

“There are a couple of key issues which will determine whether this growth is sustainable. Continued increases in capital expenditure and business investment are essential, as is a rise in exports.

“If the growth surge is simply based on credit-reliant consumer spending, then that would be unsustainable. We do not, however, believe that is the case.

“We are extremely optimistic about the general economic outlook, especially with regards to the UK and US.

“There are never any guarantees about future economic fortunes, of course, and we would always add the caveat with forecasts like this that they are just that – forecasts, not certainties. Investors and businesses must always take account of their own views and attitudes to risk and return when decision-making.”

Quilter Cheviot is one of the UK’s largest independent investment firms, with offices across the UK. It focuses primarily on structuring and managing bespoke discretionary portfolios for private clients, charities, trusts, pension funds and intermediaries. The company manages £15.5bn of funds.

This was posted in Bdaily's Members' News section by Simon Malia .