We wanted to provide an update on how we are adapting to the rapidly changing environment. These are challenging times with a tremendous amount of uncertainty, but also different from past experiences in that it is impacting us all personally in our day-to-day lives. We know that many of you are concerned not only about your health, but also about your portfolios during this period of market volatility.
Geoff Scott's blog
The spread of the Coronavirus and the acceleration of cases outside China last weekend has been the catalyst to a swift market correction. There is still significant uncertainty over how the virus will continue to spread, which has certainly added to the speed and magnitude of the sharp correction we’ve witnessed.
We recently held our quarterly Asset Allocation Committee meeting, where several Cambridge Global Asset Management (“Cambridge”) team members meet to discuss key questions that drive the investment decisions we are making for our clients: What has changed since the last quarter? How have our balanced funds been performing? Where are we seeing good risk/reward opportunities across different asset classes? Do we need to make any asset mix changes to our balanced portfolio given our outlook?
As you may recall, CI Financial Corp. (“CI”) and Australia-based GSFM Pty Limited (“GFSM”), formerly Grant Samuel Funds Management, launched their first joint product in 2017, which is managed by Cambridge Global Asset Management (“Cambridge”) and distributed to Australian institutions and retail investors by GSFM. This is a significant milestone, as it is the first CI-managed product to be distributed outside of Canada.
We recently convened our quarterly Asset Allocation Committee meeting and would like to provide you with an update on our current views. In this meeting, we review our portfolio positioning, the performance of the underlying strategies in our Balanced portfolios, and each committee member shares their views on the risk/reward opportunities in their respective asset classes.
The recent sell-off has been swift and has taken equity markets lower throughout the world. Although it is difficult to pinpoint its exact trigger – rising inflation expectations are initially being identified as the culprit – we remain focused on executing our investment process and identifying attractive risk/reward opportunities in the market.
I have been meeting with clients over the last few weeks and it’s hard not to notice the similarities in questions that come up, specifically regarding the conservative positioning reflected across our portfolios.