How to build resilient portfolios

2020 has been a year like no other in living memory. Our panel discussed building resilient portfolios for an uncertain world.

Nov 16, 2020

21 minutes

Christine Baalham
Clyde Rossouw
Victoria Harling
2020 has been a year like no other in living memory. Our panel discussed building resilient portfolios for an uncertain world.

The fast view

  • Defensive equities don’t have the fastest growth trajectory, but they can be resilient in terms of cashflows and revenue dynamics.
  • Quality investment strategies have to evolve as the world changes – for example, to capture the rise of Asia – so that they don’t just reflect the historical performance of companies. But there are still numerous high-quality companies in the developed world.
  • Emerging corporate debt has done well this year partly because it is skewed more towards the manufacturing and industrial sectors than services. There is always core demand for some of these products.
  • Emerging corporates are good at coping in uncertain times. These companies are used to operating in markets with less stable macro backdrops and have learned to adapt.
  • Emerging debt is more volatile generally than developed-world debt, but default rates are lower – and investors are still receiving a premium. Investors need to be able to look through the short-term volatility to capture the potential longer-term benefits of the asset class.


General risks:

All investments carry the risk of capital loss.
Christine Baalham
Portfolio Manager
Clyde Rossouw
Co-Head of Quality
Victoria Harling
Portfolio Manager

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