Dom Giuliano, Portfolio Manager at Magellan says Investors should not be distracted by short-term data trends

Dom Giuliano, Portfolio Manager at Magellan says Investors should not be distracted by short-term data trends. In our view, the drivers of US economic growth are gathering strength, justifying the Federal Reserve's moves to end Quantitative Easing and gradually normalise monetary policy. Higher interest rates will be disruptive to markets, particularly those where investors have sought duration and higher yields and, as a result, we continue to consider the unwinding of Quantitative Easing as the single most important factor that will impact markets and economies over the next few years. The Fund is fully invested, despite the strong rise in equity markets in 2013, as we believe its holdings have appealing valuations and should deliver attractive returns for investors over the next 3-5 years. The Fund remains positioned to benefit from a strengthening US economy, along with normalisation of interest rates and capital market activity. Read more: (VIEW LINK)