US/China at risk of tech war
The US and China are no longer just at risk of a trade war, but also a technology war, according to RWC Partners.
John Malloy Jr, RWC Partners co-head of emerging and frontier markets, said there were publicly-traded companies out there that were at risk, if further sanctions happen.
“Where we are concerned on US politics impacting our portfolio is US/China and we think it’s not a trade war, but a technology war,” Malloy said.
“We are reluctant to have hardware or even software exposure in China that would potentially be impacted by sanctions or them not having access to the US market.”
When it came to the US election generally impacting emerging markets, Malloy said the uncertainty made it useless to focus on right now.
“As [former US Secretary of Defense, Robert] Gates said ‘the election doesn’t start until after Labor Day’, which is on 7 September,” Malloy said.
“You’re going see polls [and] people saying ‘Biden is ahead by X amount’, there’s going to be an enormous amount of noise.”
AUTHOR
Chris Dastoor
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
