How can investors navigate global equity markets during this volatile period? What does this mean for globalisation and for long-term investors?
Hosted by [i3]’s Teik H. Tan, this webinar covered topics on global equity investing, including:
- Investing in medical innovation, medtech and therapeutics vs vaccine
- Disintegration of global supply chain: Does that favour small caps?
- Defensive vs value investing in the age of disruption
- Trade wars and geopolitics, including the impact on semiconductors in the race for 5G leadership
With a unique background in both immunovirology and finance, Capital Group‘s Jonathan Knowles shared his perspectives on the financial markets in the context of COVID-19 as well as in the longer term.
Overview of webinar (40 mins):
02:06 An investment perspective into the world of medicine: The development of COVID drugs, dexamethasone, regeneron and synthetic antibodies
06:22 An issue with the manufacturing capacity of COVID drugs
08:30 Is there an investment opportunity into medical? COVID cure centered companies will not be focused on profit making at this time. Instead COVID recovery stocks would be more suitable
10:02 De-globalisation of the supply chain: Companies are transitioning into multiple sources for materials to reduce reliance on a single supplier
13:17 How should we be looking at emerging market companies in this current climate? There are huge recoveries being made in China and India due to various reasons like consumption and development of antibodies
16:26 Is the China narrative focused on the ‘consumption story’?
18:22 In the midst of disruption and digital technology, how do you identify opportunities?
20:09 What happens post COVID-19? Changes in work patterns which affects real estate, restaurants and businesses
21:08 ‘Is every company is a tech company? Yes, to an extent, companies all need software and technology to run, but there are large opportunities to be made in non-tech companies as well
22:47 How would trade tensions affect 5G rollouts: China is ahead of the game and the US would like to slow them down through bottlenecking semiconductors sales to China.
25:18 The semiconductor supply chain is extremely narrow with very few companies being able to afford purchasing them
26:27 Europe’s second wave and impact on global markets: The government will be stimulating the economy through printing money, which is good for short-term but detrimental for long-term growth. Prepare for a low growth period
29:26 Growth versus value and defensive investing. You need to always be challenging your assumptions to stay up to date with the rapid changes as safety of some companies does not always hold
32:43 Merits of growth versus value discussion: Investing into a great business at a reasonable price is better than an average business at a cheap price
34:41 The price of money affecting growth/value investing
36:18 How the future translates into changes for your portfolio
37:17 Areas for growth: Shift in diabetes treatment and continuous glucose monitoring are areas of high interest
Jonathan Knowles is a global equity portfolio manager at Capital Group. He has 28 years of investment experience, all with Capital Group. Earlier in his career, as an equity investment analyst at Capital, Jonathan covered pharmaceuticals, chemicals, support services and small-cap companies.
He holds an MBA from INSEAD, France, and a PhD in immunovirology and bachelor’s degree in veterinary science from the University of Liverpool, U.K., where he was a Wellcome Foundation Research Scholar. Jonathan is based in Singapore.
Disclaimer: This webinar is for educational purposes only and does not constitute financial advice. It is intended for wholesale and institutional investors only.