The Psigma team finds the case for investing in certain EM consumer stocks equally persuasive. Despite the potential headwind from a stronger dollar in the short-term, a scenario which has other investors disavowing the asset class, the group is moments away from adding the Macquarie Asian All Stars fund to the portfolio.
The Macquarie vehicle hones in on tourism and consumer trends in the maturing Chinese market, explained senior investment analyst Daniel Adams, a segment which Psigma is keen to tap into over 2017.
Finally, inflation protection, particularly in the US, is “the name of the game” across Psigma’s portfolios currently, according to McPherson.
The economic policies that President-elect Trump has publicised and tweeted about during and since his campaign run, or ‘Trumponomics’, has “put the US recovery on steroids,” he said. However, there are opportunities within the higher inflationary environment.
“Assets that tap into the economy, like high yield credit, are going to do well, as are assets that tap into inflation like banks,” McPherson explained.
Playing off of this theme, the team are invested in the Airlie Strategic Focus High Yield fund.
