Two key trends are driving global macro risks and opportunities—central bank policies and investors seeking to avoid downside risk—Brian Singer, head of William Blair’s Dynamic Allocation Strategies team, said recently in interviews with IRIS Founder Tom Lydon and RIA Channel’s Julie Cooling, founder and CEO.

Ultra-easy monetary policies have pushed prices away from their fundamental values and stay there, Singer said to IRIS’s Lydon. And as fundamental investors, that is a challenging environment. “It’s been hard for prices to equilibrate with that central bank involvement,” Singer told IRIS, adding that these ultra-easy monetary activities are slowing down and starting to shift the other direction.

The second driver is that currently no investors want downside risk, and yet, the largest opportunities—the most compensated risk—in the world exist where there’s downside tail risk, Singer said. As a result, Singer and his Dynamic Allocation Strategies team need to navigate downside risk that geopolitical events like elections in the United States, France, and Germany later in 2017 present.

“Populism has driven these elections to extremes,” Singer told RIA Channel. “Populism doesn’t stand for anything. It stands against the existing elite. So you have these big bi-polar outcomes.”

Singer highlighted to RIA Channel and IRIS that his team is finding opportunities in markets where there are geopolitical developments and downside risks that are compensated, including:

  • European equity markets, such as Italy, Spain, and the United Kingdom
  • Emerging market equities, mostly in South East Asia and India
  • Emerging market currencies

On the other hand, they aren’t finding any opportunity in the U.S. equity market, and are currently short U.S. equities, which many investors view as a safe haven.

Singer went on to highlight in his RIA Channel interview that his team manages multi-asset portfolios, which can invest in about 125 global equity and bond markets, sectors, and currencies from a top-down perspective.

“It’s all about macro diversification,” Singer told IRIS’s Lydon. “We navigate in ways that often an advisor can’t by investing in individual countries and currencies.” He added that this approach provides “pure top-down analysis and pure top-down diversification executed in a dynamic manner.”

Watch Brian Singer’s Interview with IRIS

Watch Brian Singer’s Interview with RIA Channel

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

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This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

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Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
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