Construction, Energy, Technology Seen as Investment Opportunities by The
Boston Company Asset Management
BNY Mellon Investment Manager Says Opportunities Exist Despite Slow Growth
NEW YORK and LONDON, Jan. 17, 2013
NEW YORK and LONDON, Jan. 17, 2013 /PRNewswire/ --Construction, growing
energy production in the U.S., cutting-edge technology, the changing
health-care landscape and increasing merger-and-acquisition activity are
likely to provide investment opportunities during 2013, according to a white
paper from The Boston Company Asset Management, the Boston-based equities
investor for BNY Mellon.
In the paper, The Boston Company's U.S. Small Cap Growth team concludes that
investment opportunities will exist despite the continuing low-return
environment. "In a low-interest rate environment, investors likely will be
willing to pay for companies that can deliver growth," according to the paper,
Investment Themes for 2013.
Beneficiaries of the low rates will be the housing industry as well as the
construction industry across both residential and non-residential markets, the
report said. On the other hand, the report said banks will continue to feel
pressure from low rates that have compressed net interest margins.
On energy, The Boston Company pointed to advances in drilling technology that
have led to increases in oil and natural gas production.
"We are investing in companies that benefit from the growing volume of
hydrocarbon being extracted in the U.S., but are looking to avoid those that
would be adversely affected if commodity prices moderate over time," said B.
Randall Watts, Jr., lead portfolio manager for the Small Cap Growth team. "We
like the companies that supply equipment and services to this industry, such
as pipelines, processing plants and storage."
In technology, The Boston Company said it favors companies that help carriers
improve wireless service and facilitate offerings accessed through
smartphones. In health care, The Boston Company expects to find opportunities
in biotech, specialty pharmaceuticals, Medicaid managed care and selected
health care services.
Merger-and-acquisition activities, which The Boston Company expects to
accelerate in 2013, could provide opportunities for investors, the report
said. "As uncertainties surrounding the U.S. elections and fiscal cliff
dissipate and the eurozone makes headway in resolving its debt crisis,
companies may become more confident about putting their capital to work," the
Watts added, "With continuing low interest rates, there is less incentive for
companies to hoard cash. So companies with healthy balance sheets are more
likely to acquire market share, talent, intellectual property and new
Notes to Editors:
The Boston Company Asset Management, LLC, a BNY Mellon Investment Management
boutique, provides investment management services for corporate, public,
mutual funds and union sponsored and jointly trusteed retirement plans,
endowments and foundations.
BNY Mellon Investment Management is one of the world's leading investment
management organizations and one of the top U.S. wealth managers, with $1.4
trillion in assets under management. It encompasses BNY Mellon's affiliated
investment management firms, wealth management services and global
distribution companies. More information can be found at www.bnymellon.com.
BNY Mellon is a global financial services company focused on helping clients
manage and service their financial assets, operating in 36 countries and
serving more than 100 markets. BNY Mellon is a leading provider of financial
services for institutions, corporations and high-net-worth individuals,
offering superior investment management and investment services through a
worldwide client-focused team. It has $26.7 trillion in assets under
custody/administration and $1.4 trillion in assets under management, services
$11.4 trillion in outstanding debt and processes global payments averaging
$1.5 trillion per day. BNY Mellon is the corporate brand of The Bank of New
York Mellon Corporation (NYSE: BK). Additional information is available on
www.bnymellon.com or follow us on Twitter @BNYMellon.
Allinformation source BNY Mellon as of December 31, 2012. This press release
is qualified for issuance in the UK and US and is for information purposes
only. It does not constitute an offer or solicitation of securities or
investment services or an endorsement thereof in any jurisdiction or in any
circumstance in which such offer or solicitation is unlawful or not
authorized. This press release is issued by BNY Mellon Investment Management
(US) and BNY Mellon Asset Management International Limited (ex-US) to members
of the financial press and media and the information contained herein should
not be construed as investment advice. Past performance is not a guide to
future performance. The value of investments and the income from them is not
guaranteed and can fall as well as rise due to stock market and currency
movements. When you sell your investment you may get back less than you
originally invested. Registered office of BNY Mellon Asset Management
International Limited: BNY Mellon Centre, 160 Queen Victoria Street, London,
EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the
Financial Services Authority. A BNY Mellon Company.
SOURCE BNY Mellon
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