FidelityConnects

Regardless of the increased availability of vaccines, the COVID situation improves in some countries while simultaneously worsening in others. In this episode, Sam Polyak, portfolio manager of Fidelity Emerging Markets Fund, takes us through emerging markets across the world and shares some potential opportunities and blind spots. Sam believes that the U.S. dollar could weaken in the next 3 to 5 years. He explains how this could strengthen the Canadian dollar as well as emerging markets. Sam describes the themes for emerging markets such as Asia, Latin America, and Europe, the Middle East, and Africa (EMEA). He notes that with the growth of innovative companies in Asia, it now makes up 80% of EM. Despite the tragic COVID situation in India, Sam believes it is a place to be excited about for investing over the next three to five years. He also shares his opinions on vaccine passports and discusses sectors he avoids.

Recorded on May 4, 2021.

Despite a bullish first quarter, recent events, such as reopening trades and impending tax hikes, might be slowing down the economic momentum. Director of Global Macro, Jurrien Timmer, looks across these asset classes and discusses what all these layers mean for the markets. Jurrien notes that the market can go up even if the world is falling apart. Jurrien mentions that the U.S. is in a great place with the COVID recovery. The country has accessibility to the vaccine, and 41% of the population is immune to the disease. As a result of the US driving growth, bond yields are going up, and emerging markets on a structural basis are good. Jurrien expresses his thoughts and P/E compressions and the infrastructure plan of the Biden administration. Jurrien also believes that the dollar could be going down. However, there could be a period where we see a strengthening with digital currencies, digital assets. Follow along with Jurrien’s charts on Twitter: @TimmerFidelity

Recorded on May 3, 2021.

Denise Chisholm, sector strategist, shares her insights and perspectives on the sectors to watch in global markets. Denise looks at hiring and labour markets in the United States, as well as labour supply and demand. Denise states the U.S. needs more workers to be able to produce what it wants to produce, and she believes this is solvable through higher wages. Denise explains what she believes are the most and least timely sectors right now, and she also looks at globalization and the threat of offshoring, this earnings season, and how the proposed U.S. infrastructure spend could affect certain sectors.

Recorded on April 30, 2021.

For the first time on the program, we welcome Senior Portfolio Manager Anna Lester and Institutional Portfolio Manager Mike Hagopian from Geode Capital Management.  Anna and Mike manage the Fidelity Sustainable World ETF and ETF fund. Geode is a systematic manager that uses a rules-based and systematic approach to how it builds its portfolios. Using screening and integration, the managers start with a broad universe and take the best in class of ESG leaders, and then from there they use a bottom-up stock selection model.  Mike says ESG is growing and will only get bigger in the next five years.  He says corporations are waking up to ESG because they are realizing it has an influence on their bottom line.  Anna says they are now looking at industries differently when it comes to ESG because the data has become much richer over the past few years.  There are metrics that are industry specific and most companies have sustainability reports.  Anna and Mike also touch upon how ESG will influence supply chains and from an environmental, social or governance standpoint explain where their portfolio leans more towards. 

Lipper Award winner and Portfolio Manager Eileen Dibb examines investment opportunities in Asia-Pacific equities, as well as the impact of trade relations and economic recoveries throughout the region. For Canadian investors, Eileen manages Fidelity Japan Fund and Fidelity AsiaStar Fund. Eileen explains that the different countries that make up Asia-Pacific are reopening at different speeds, and she is tracking the movement in the different economies. Some areas are still in lockdown. Some are going back into lockdown, such as parts of Japan. Other Asia-Pacific regions are experiencing less COVID cases than before. Eileen looks inflation in Asia, and at the rotation from growth to value in her funds.

Recorded on April 27, 2021.

Investing with ESG in mind (environmental, social and governance considerations) has been on the rise lately, and has been a focus of our FidelityConnects discussions as well throughout some recent shows. Director of Research Joe Overdevest and Fidelity’s equity analyst panel discuss how they evaluate and look at companies from an ESG perspective, and note where opportunities can be found in this shifting landscape. The panel looks at how the consumer is changing, how companies in different sectors differ in ESG requirements, and Fidelity’s internal ESG rating system. Joe, as a portfolio manager, also sheds light on how ESG ultimately impacts him as a portfolio manager, noting that being empowered with information allows decision making like never before.

Recorded on April 23, 2021.

Jurrien Timmer, Director of Global Macro, believes that knowing what’s going to happen in the markets is one thing, but knowing what is being priced in is another. Jurrien notes we’re at a point where the markets need to digest what has been happening with the rise in yields, steepening of the yield curve, and growth to value rotation. Jurrien looks at some data around the discussion of peak reopening, in that the US has been outperforming of late, in terms of reopening their economy. Jurrien also speaks about debt and taxes, commodities, digital currencies, and earnings season. Numbers have been strong with the earnings estimate calling for 24% growth rate before earnings season began, and now is showing a 34% growth rate.

Recorded on April 26, 2021.

In the 17th episode of the Fidelity ETF Exchange, powered by FidelityConnects, co-hosts Étienne Joncas Bouchard and Himesh Patel took the time to answer some of the most common and frequently received questions from advisors and investors regarding ETFs. Some of the questions include, what is the difference between a mutual fund and an ETF, what is the difference between NAV and price, are all ETFs passive, and many more.

Recorded on April 26, 2021.

The COVID-19 pandemic has accelerated the interest and demand in ESG investing. Dozens of ESG ratings systems have been created, and it’s been noted that non-financial risks including those related to ESG principles can have a significant financial impact on a company over time. Jenn-Hui Tan, Global Head of Stewardship and Sustainable Investing at Fidelity International, speaks about the current state of ESG investing globally, and comments on Fidelity International’s ESG rating system and approach to ESG investing. Jenn explains that a lot of people think about ESG investing through the equity lens, but he believes that bond holders can drive improvement and have the greatest impact when it comes time for a companies refinancing.

Recorded on April 22, 2021.

Portfolio manager Ramona Persaud is back on the program this time marking World Earth Day with our listeners.  In this episode, she explains how to find ESG alpha and how she personally looks at ESG.  Her investing strategy of equity and dividend-oriented strategies focuses on providing return, downside protection, and income and she says ESG can co-exist with that current process. She’s overweight in ESG in her funds and she’s currently looking at ESG in banks and data privacy. Ramona also comments on the oil industry and where it is heading on the ESG front, as well as her thoughts on the standardization among ESG rating systems.

Recorded on April 22, 2021.