Portfolio manager Patrice Quirion shares his perspectives on global market valuations and opportunities for 2021. Patrice feels good about the market entering 2021. He’s a contrarian investor that focuses on out-of-favour areas like cyclicals, industrials and manufacturing types of businesses, and the prices are currently quite reasonable. Patrice thinks inflation is more of a concern for next year, but that it is coming; there is too much liquidity in the system, and we are positioned for a strong comeback. We also have pressure from minimum wages that will trickle in, loose interest rate and monetary conditions and the Central bank is in no rush to cool down the economy. 

Recorded on February 3, 2021.

Portfolio manager Ramona Persaud reflects on 2020, a year that required immense flexibility and resilience. Ramona took a defensive approach at the beginning of the year, and shares how Fidelity’s research resources allowed her and other portfolio managers to get ahead of the pandemic. If you’re looking for dividends, today’s podcast is for you. Ramona believes that value wins over, quality enhances downside protection, and capital allocation drives income. Ramona thinks of income as an outcome of her process, rather than a target. In all her funds, she is looking for good investment return, with low levels of volatility and reasonable income, and this generally equates with strong risk-adjusted returns. She believes valuation drives returns and quality drives downside protection and can also drive income. If Ramona focuses on valuation and quality, income can be a natural outcome of the process.

Recorded on January 27, 2021.

Portfolio manager Darren Lekkerkerker chats with host Emily Anonuevo about how he first got into investing and his investment approach that focuses on quality companies trading at reasonable valuations, with shareholder-oriented management. One of Darren’s tactical moves last year was to add cheap consumer discretionary names in restaurants and retail in March. He looked at companies that he thought would see demand in a work-from-home environment, due to their e-commerce, delivery and takeout services. Darren notes how he is maximizing company meetings while working remotely, and overall is optimistic about 2021.

Recorded on February 2, 2021.

Sam Polyak, portfolio manager of Fidelity Emerging Markets Fund, takes us through emerging markets across the world and talks about where he is seeing faster recoveries and growth opportunities. Sam believes that global growth will be exciting post-pandemic, not just for emerging markets (EM) but for all markets. People have been saving money, and as economies reopen, jobs will be created, inflation could develop, and EM could benefit from demand for exports. Sam notes that Latin America benefits from a weaker dollar, and he is currently allocating more than the benchmark to this region, compared with Asia.

Recorded on February 2, 2021.

Portfolio manager Steve DuFour explains how he invests in companies poised to take advantage of disruption, and details his 5 step screening process to arrive at a concentrated portfolio that meets his specific criteria. For Canadian investors, Steve manages Fidelity U.S. Focused Stock Fund, and he typically starts with the S&P 500 when looking for companies to screen, but he has been gradually adding international companies to his screening list. Steve spends a lot of time looking at ESG data, and the social aspect of how companies treat their employees is very important to him. Today, Steve also comments on the healthcare sector, 5G, bitcoin and crypto, and the ongoing growth of digitization which was accelerated in 2020 by the coronavirus pandemic.

Recorded on January 27, 2021.

Fixed income portfolio managers Jeff Moore and Michael Plage manage several funds for Canadian investors including Fidelity Multi-Sector Bond Fund, Fidelity Investment Grade Total Bond Fund, and Fidelity Global Core Plus Bond ETF. Michael believes that aging demographics around the world is creating a structurally positive backdrop for bonds, and Jeff touts the benefits of a research-driven investment process with a team-based approach. Jeff and Mike also comment on the similarities and differences between their funds, look at the macro picture and share thoughts on ESG investing becoming an important area of focus.

Recorded on January 27, 2021.

We welcome back portfolio managers Geoff Stein, David Wolf and David Tulk from the Global Asset Allocation team. The Global Asset Allocation team manages the 29 multi-asset class funds available to Canadian investors, including the Fidelity Managed Portfolios. There are three key elements to the funds they manage: strategic benchmark development properly diversified across geographies and asset classes, active manager selection, and ongoing tactical management with under and overweights. The team also unpacks their active fund positioning, the difference between their various funds, and provide an outlook for 2021 and beyond.

Recorded January 27, 2021.

Portfolio manager HyunHo Sohn covers the technology landscape including, EV infrastructure, global trends and regulations in the tech industry. Overall, HyunHo believes that earnings are very strong across the board in technology.  But within tech, HyunHo feels that there is a big dispersion between high valuation stocks and low valuation stocks. HyunHo discusses ESG technology as well. He believes the marketing in this sector is high and there are a lot of opportunities in this area. He invests a lot in the electric vehicle supply chain space. He also notes China is by far the most advanced in this area, but the US is not far behind.

Recorded on January 29, 2021.  

Portfolio manager Mark Schmehl believes that events change quickly, and recognizing those moments of change allow him to find opportunities that traditional investors overlook. For Canadian investors, Mark manages Fidelity Special Situations Fund, Canadian Growth Company, Global Innovators, and the newly launched Fidelity Multi-Asset Innovation Fund. Mark reflects on the volatility and opportunities from 2020, and looks at what 2021’s investing landscape might be. Mark continues to invest in places where things are changing rapidly, and to do this he leverages the strength of Fidelity’s deep global research platform. Mark filters the positive innovation from the noise, and seeks to invest in the most compelling opportunities across developed and emerging markets.

Recorded January 27, 2021.

Jurrien Timmer, Director of Global Macro, notes that the shift from growth to value is continuing, alongside a noticeable shift from large caps in the growth sphere to smaller caps in value. Real rates are negative and seem to be staying that way, which is why gold is stagnant at the moment. What we are seeing now is the output gap closing (at a slower rate, due to lockdowns) and excess liquidity flatlining. Money is coming out of money market and into the stock market – and even into bonds. The sentiment reflected in these flows in the market doesn’t indicate a bubble, in Jurrien’s opinion. He thinks the market is betting on a lift from an inflationary boom when the economy reopens, with spending power in the market feeding into an inflationary environment. Follow along with Jurrien’s charts @TimmerFidelity on Twitter.

Recorded January 25, 2021.