Fidelity

We recently surveyed our team of analysts across the globe to get the on-the-ground view of what they’re hearing from companies. This month’s findings reveal the rising dispersion across and within sectors, as well as the profound impact the Covid-19 crisis will have on how companies approach social issues. What would a move to stakeholder capitalism mean for company margins?

As the economic and social impact of Covid-19 plays out, new long-term trends will set the world on a unique course. Global CIO Andrew McCaffery and our Global Macro Team discuss what this new economic order could look like in terms of state intervention, fiscal activism and Asian leadership.

China’s five-day May Day holiday was the first big test of domestic demand - and particularly tourism - since Covid-19 lockdowns started being lifted. We take a close look at China’s journey back towards normality and highlight some of the bright spots that we are seeing on-the-ground.

The need for income among global investors is not going away, but it is becoming harder to find stable and predictable sources in the current environment. Andrew McCaffery, Global CIO Asset Management, and Henk-Jan Rikkerink, Global Head of Solutions and Multi Asset, discuss the risks and trade-offs that investors need to consider moving forward.

How the Covid-19 crisis unfolds over the coming weeks and months depends on a number of variables. Faced with this uncertainty, Global CIO Andrew McCaffery and our Global Macro Team give our base, bull and bear cases and the associated implications for the global economy.

While the global market sell-off in March appeared indiscriminate, our proprietary ESG ratings highlighted that higher-rated companies outperformed their lower-rated peers. Andrew McCaffery, Global CIO, Asset Management, and Ned Salter, Head of Equities, assess recent market movement and outline why the focus on sustainability issues will continue to grow as we emerge from this crisis.

Are central banks doing enough to bolster their economies to ensure recovery once we know a path out of the pandemic? With news that both the European Central Bank (ECB) and the Fed hold steady for now on their policy movements, Fidelity’s Head of Global Macro and Investment Strategy, Anna Stupnytska outlines what that means for global economics.

Even by the oil market’s standards 2020 has been exceptionally volatile. The market has faced unanticipated supply and demand shocks, leading to the commodity’s worst quarter in history. Louise Fribourg, Markets Analyst within our Multi Asset team explores what the oil crisis means in the context of global markets: does this cheap price offer investors value, or is caution warranted?

Global health, monetary and fiscal policy has been rightly focusing on limiting the worst impacts of the coronavirus outbreak over recent weeks. Paras Anand, CIO Asset Management Asia Pacific, takes a step back and assesses the longer-term ramifications for businesses in terms of taxation, regulation and unexpected shifts in the jobs market.

Recent market volatility has opened up a number of new opportunities, but methods of assessing these must adapt to avoid value traps. Fidelity American Special Situations Fund Manager Angel Agudo discusses the complexities of determining the price to pay for US companies in a post-pandemic world.

The plunge into negative prices for US WTI oil produced some shocking headlines, but it is due to a technical effect of the futures market. James Trafford, Analyst & Portfolio Manager explains what the technical drivers are behind the oil price.

During times of intense volatility and uncertainty, it is normal for investors to shorten their investment timelines. Fidelity’s Paras Anand, Head of Asset Management, Asia Pacific, takes a step back from the current noise and outlines three key themes that are set to endure and reward investors with a longer-term view.

With over 20 years of experience investing in Asia, I have invested through both the Asian Financial Crisis in 1997-98 and the global financial crisis (GFC) in 2008. When it comes to periods of market downturn, and financial crises, each one is different and nuanced with differing causal effects. This time is different again. It is not about over-leveraging, but it is a global pandemic that we are facing. What began as an outbreak in China has now assumed a global scale. It is not financial distress, rather it is uncertainty about individual health and fear about personal wellbeing everywhere.

Looking to the year ahead, Fidelity Asia Fund portfolio manager, Teera Chanpongsang believes investors face a new set of norms given a meaningful shift in the Sino-US dynamics and its impact on global growth. Encouragingly, however, Teera explains that Asian economic activity continues to outpace the West as long duration structural changes look to unfold in the year ahead.

When it comes to index funds, investors may be drawn to a low headline OCF as they believe their interests are best served by having the lowest fees possible. But is this really the case? We outline why extensive due diligence is key when selecting index funds and reveal the questions you need to ask to achieve better investment outcomes.

As monetary tools reach their limits, calls for sustained fiscal stimulus are growing. While conventional thinking would assume that this environment would negatively impact bond investors, Sajiv Vaid challenges this view and outlines why he believes low yields are here to stay irrespective of the prevailing fiscal policy stance.

Fidelity Emerging Markets Fund Manager Nick Price tackles the myriad of issues and opportunities currently facing investors across the world’s developing markets. He outlines how he is navigating macro uncertainties and reveals the pockets of potential he sees across the EM complex.

Rising labour costs and recent trade tensions is resulting in some companies relocating production lines out of China. Fidelity Emerging Asia Fund portfolio manager Dhananjay Phadnis looks at how ASEAN is benefiting from this shift.