Global small caps poised for strong returns in the wake of COVID-19

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Investors who eschew small caps are missing out on valuable opportunities – particularly in the current environment, says Damien McIntyre,  CEO, GSFM. “Periods of underperformance for global small caps do coincide with recessionary environments, but small caps historically go on to experience meaningful outperformance in economic recoveries,” Mr McIntyre says. “For instance between 2000 and 2006 small caps

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CPD: Growth in a post-COVID world

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Growth stocks have been on an upward trajectory for years, a trend that has accelerated due to the COVID-19 pandemic. In this article, GSFM shares insights from Munro Partners, global growth investment managers. While classifying stocks as either growth or value is a relatively simplistic view, it’s one that’s had particular relevance in the current

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CPD: From ‘atoms’ to ‘bits’: COVID-19 as an accelerant for the digitisation of the economy

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The last six months have been profoundly transformational, with the COVID-19 shock acting as an accelerant for the digitisation of the economy. This radical transition is especially advantageous for asset-light business models in the tech, health care and communications sectors. This article, from GSFM’s investment partner Epoch Investment Partners, outlines its firm conviction that “data

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The great influenza – the story of the greatest modern pandemic and its lessons for 2020 and beyond

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The world now faces another major pandemic. While the death toll in the current pandemic is still but a fraction of the greatest modern pandemic – the 1918 Spanish flu – there are valuable lessons from a century ago that can put our current predicament in perspective. In this article, from the economics team at

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Inoculating markets from economic influenza – investing in a post-COVID world

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Economic uncertainty existed before the COVID-19 pandemic, but investment performance depends on more than economic fundamentals, according to GSFM and its fund manager partners Payden & Rygel, Munro Partners and Redpoint Investment Management. Stephen Miller, investment strategist at GSFM, says investing uncertainty is elevated, not just as a result of the COVID-19 pandemic, but also

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CPD: Global small caps – An underappreciated and underutilised alpha sleeve

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Many investors and advisers recognise that a diversified portfolio should include an allocation to equities across the market capitalisation spectrum. This allows investors to capture the “small-cap premium” which has shown persistence over medium and long-term investment horizons. In this article from GSFM’s investment partner, Toronto-based global small cap specialists Cambridge Global Asset Management, the

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RBA continues to eschew a negative rates policy

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While acknowledging the severe damage to the economy from the COVID-19 crisis and the now elevated potential risks of ‘second wave’ COVID-19 infections, the Governor and RBA Board continue to eschew the canvassing of potential “innovative” measures in monetary policy – such as the contemplation of a negative rates policy. Instead, the Governor and Board

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Volatility stirs as fears grow over a ‘second wave’ and IMF downgrades global growth outlook

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Key points: Market sentiment has turned negative on concern that the spreading coronavirus could force policy makers to slow the pace, or reverse, business re-openings. The International Monetary Fund downgraded its outlook for the world economy, projecting a significantly deeper recession and slower recovery than it anticipated just two months ago. We expect trade tensions

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GSFM’s Stephen Miller comments on the Federal Reserve June statement

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Fed forecasts no increase in rates until at least the end of 2022 The Federal Reserve projected interest rates will remain near zero through 2022 with the Fed’s ‘dot plot’ revealing a flat profile out to end 2022. The Fed also pledged to maintain at least the current pace of asset purchases at approximately $80b per month As part

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CPD: The outlook for dividends in a world of yield starvation

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There remains much uncertainty regarding the depth, breadth and length of the COVID-19 recession. For example, the Global Economic Policy Uncertainty Index (compiled by academics from Stanford, Chicago, and Northwestern) stands at a record high and almost twice its level during the global financial crisis (GFC). Bill Priest, CFA, Executive Chairman, co-CIO and portfolio manager

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