Covid-19: Six signposts to monitor the outlook [video]

With over 3 million people infected worldwide (Worldometers as of 29th April 2020), the Covid-19 pandemic has created huge economic uncertainty and volatility.

The outbreak, which began in China in late 2019, has sent shockwaves through financial markets. The severe social-distancing measures required have put economies on hold.

We believe the global policy response will help turn the tide, even though we may face further shutdowns to avoid new virus peaks.

The extent and duration of the social and economic consequences is unknown. But the market cannot wait for complete clarity. As asset managers neither can we. So we have identified six key signposts to help us and our investors to navigate the Covid-19 crisis and make better-informed decisions.

Important information

Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

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