Canaccord GWM dumps EM funds in favour of thematic exposure

Portfolio response to pandemic

Canaccord Genuity Wealth Management removed its exposure to all emerging market-specific funds this year as part of its portfolio response to the coronavirus pandemic, with the firm now favouring thematic and globally-focused vehicles in building exposure to emerging economies.

The changes reflect a shift in sentiment at Canaccord, which is now of the conviction that emerging market funds or country-specific vehicles fail to provide adequate exposure to key themes and the fortunes of underlying economies, while exposing investors to greater downside risk. Fundsmith's O'Brien fears bubble in Chinese equities Investment director and head of ESG investments Patrick Thomas told Investment Week the decision was made in response to the pandemic "on the basis that emerging economies are going to find life tougher", and on the assessment that "emerging marke...