Picture: REUTERS
Picture: REUTERS

In this edition of the Business Day Spotlight we take a look at the global investment landscape for SA investors looking for opportunities in other parts of the world during the Covid-19 crisis.

Our host Mudiwa Gavaza is joined by Dorian Carrell, multi-asset fund manager at global investment house, Schroders, to discuss the issues.

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The Covid-19 pandemic has resulted in global markets going into a frenzy in the past few months. But even in times of crisis, there are those who find ways to allocate their capital intelligently to ultimately benefit from unusual market conditions.

Carrell starts by describing how the situation has unfolded in Europe. Based in London, he says the UK was one of the last countries to go into lockdown, which means it is likely to be one of the last to start its recovery.

As with SA, markets are generally down in the UK and other parts of Europe, with projections of a 10% contraction in economic growth in the next quarter.

Carrell credits how many central banks, such as the European Central Bank and US Federal Reserve, have responded to the crisis by giving relief for debt holders, and supporting wages.

Business Day Spotlight host Mudiwa Gavaza.
Business Day Spotlight host Mudiwa Gavaza.
Image: DOROTHY KGOSI

In terms of opportunities and challenges for SA investors, Carrell says investors need to approach this from an income and capital returns point of view. The key is separating which effects in the market are temporary compared to long-term opportunities.

The discussion also touches on opportunities in the bond and equity markets; interest in emerging markets; taking advantage of different interest rates; an outlook for the rest of the year; and a comparison between the Covid-19 crisis and the global financial crisis in 2008.

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Business Day Spotlight is a MultimediaLIVE production.