Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Scottish Oriental's Rippingall keeps watchful eye on inflation

Scottish Oriental's Rippingall keeps watchful eye on inflation

Scottish Oriental manager Susie Rippingall is keeping a close eye on the risk of inflation.

After a dramatic rise in the minimum wage, Rippingall fears 'short term disruptions' could get in the way of increasing consumer demand, triggering a spike in the cost of goods and services.

Most at risk is South East Asia, while the likes of Taiwan and Korea may be more protected, while China sits 'half way in between', the respected Asia manager said.

'Where I see the risks [are] wage inflation, there's been quite dramatic increases in minimum wage,' Rippingall said.

As workers earn more, the Rippingall said higher wages have the obvious impact on consumption habits, pushing up demand for staples like noodles as well as luxury big ticket buys like cars and motorbikes.

But while this trend is positive and will help keep demand buoyant, meeting Asia's increased appetite could prove problematic.

'If the world can gradually increase its production of grain, sugar, soy and rice that is fine, but if short-term disruptions come through - weather related or anything else - inflation kicks off quite quickly,' Rippingall argued.

She added: 'If inflation builds up, central banks will be looking to move to raise interest rates, but they would much rather, as they have done in the past, follow the US.'

From April, Rippingall (pictured) will retire as manager of the £243 million investment trust, a move which will see Angus Tulloch  return to the vehicle, with  Wee-Li Hee and Scot McNab serving as co-managers.

Rippingall said that part of the transition process will see Scottish Oriental brought more into the 'First State fold' and for the first time it will be included in the investment house's asset allocation meetings.

Throughout her tenure, Rippingall has generated strong long term risk-adjusted returns and grown her portfolio's net asset value (NAV) by 104.2% over the five years ended in December.  Over the same stretch, the MSCI Asia ex Japan Index rose 23.2% and its smaller companies index by 19.5%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter