November 2020 / PODCAST
Opportunity in an era of extremes
David Eiswert discusses the key issues for global equity investors, including the US election and vaccine developments
Recorded: 23 November 2020
Duration: 32m 09s
This podcast features Global Focused Growth Equity Strategy Portfolio Manager, David Eiswert, and Portfolio Specialist, Laurence Taylor.
In this episode, Dave offers his latest take on the current market environment for global equity investors, the key issues on his mind and how he’s responding, including:
- His reaction to the US election, vaccine developments and what these changes mean for stocks
- The opportunity for cyclicals set against an outlook of improvement
- How the team is sifting rhetoric from reality in a world where digital transformation has accelerated
- The difficult choices he’s making as we look out to 2021
Risks – the following risks are materially relevant to the portfolio:
- Currency risk – changes in currency exchange rates could reduce investment gains or increase investment losses.
- Emerging markets risk – emerging markets are less established than developed markets and therefore involve higher risks.
- Small and mid-cap risk – stocks of small and mid-size companies can be more volatile than stocks of larger companies.
- Style risk – different investment styles typically go in and out of favour depending on market conditions and investor sentiment.
General Portfolio Risks
- Capital risk – the value of your investment will vary and is not guaranteed. It will be affected by changes in the exchange rate between the base currency of the portfolio and the currency in which you subscribed, if different.
- Equity risk – in general, equities involve higher risks than bonds or money market instruments.
- Geographic concentration risk – to the extent that a portfolio invests a large portion of its assets in a particular geographic area, its performance will be more strongly affected by events within that area.
- Hedging risk – a portfolio's attempts to reduce or eliminate certain risks through hedging may not work as intended.
- Investment portfolio risk – investing in portfolios involves certain risks an investor would not face if investing in markets directly.
- Management risk – the investment manager or its designees may at times find their obligations to a portfolio to be in conflict with their obligations to other investment portfolios they manage (although in such cases, all portfolios will be dealt with equitably).
- Operational risk – operational failures could lead to disruptions of portfolio operations or financial losses.
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