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Look to Polar Capital Global Insurance for less vulnerable returns

Polar Capital Global Insurance invests in companies that are less sensitive to economic conditions
Look to Polar Capital Global  Insurance for less vulnerable returns

A resurgence of coronavirus cases in the US is a reminder that this crisis is far from over. This means equity markets might experience more falls, so uncertainty for investors remains. But while this is likely to be the case for market indices overall, there are sectors and regions that may not be so badly affected.

IC TIP: Buy at 666p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points

Less economically sensitive companies

Lower volatility

Good long-term returns

Highly experienced managers

Bear points

Concentration risk

These are likely to include companies that produce essential goods and services that tend to be purchased regardless of the economic situation. “Non-life insurance, for example, is not a discretionary purchase and often required by law, so demand tends to be less sensitive to macroeconomic conditions,” explains Sheridan Admans, manager of The Share Centre’s Multi Manager funds.

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