The key risk over the medium term is the unwinding of the global yield trade as US interest rates potentially normalise

The key risk over the medium term is the unwinding of the global yield trade as US interest rates potentially normalise. We are wary of the large re-ratings that have occurred in low growth, domestic yield stocks such as Telstra. We are focussed on quality companies with above average organic growth options, which are less sensitive to movements in discount rates. In the long term, value is created by earnings growth.