85. Investing through a Mexican wave of global shutdowns

Public sector pay rises, a higher oil price and government asset purchases all point to future price inflation, according to Rob Burdett, co-manager of BMO MM Navigator Distribution. He explains why inflationary signs are positive for value funds, describes how the “Mexican wave of global shutdowns” made diversification “null and void”, and tells us how he took advantage of corporate bond fund yields jumping from 2% to 6% in March.

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BMO MM Navigator Distribution invests primarily in funds whose managers are experienced, have a proven ability, and are well-known to co-managers Rob Burdett and Gary Potter. However, this fundamental strategy is supplemented with emerging and new ideas or younger fund managers who are displaying abilities and an investment maturity beyond their years. As the managers say: “We like to be involved in a fund when it is building its track record rather than living off it!”

Read more about BMO MM Navigator Distribution

What’s covered in this podcast:

  • How 25 years’ experience couldn’t prepare you for COVID-19 [0:33]
  • The long-term and short-term roadmaps for the world – and how to position a portfolio for both [3:10]
  • How corporate and high yield bonds could reap rewards with higher-than-inflation income payouts [5:04]
  • Why value funds look more compelling now we are seeing signs of inflation [7:04]
  • How the fund is position for a sharp economic recovery – but the managers are ready to reposition quickly if the outlook worsens [10:30]
  • Why UK dividend cuts may only be temporary [11:54]
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