The case for global investing: Protecting against currency risk

The case for global investing: Protecting against currency risk


[music]>>Bill Walker: Hi. I’m Bill Walker. Closet
indexing is a charge that certainly can’t be levied against my guest, Erin Greenfield,
whose go-anywhere investment approach and flexible mandate allows him to look
very different than his benchmark. Erin, before we begin, I believe congratulations
are in order. You were recently named lead manager of Trimark Global Balanced Fund. Congratulations.>>Erin: Thank you.>>Bill: And you’re also recently named to the CFA
Institute’s Corporate Disclosure Policy Council. So, very good. Well done on both
fronts. Erin, we’re starting to see people buy foreign
investments again. Why is now a good time to move a portion of investors’ money into
foreign balanced or equity funds?>>Erin Greenfield: I think it’s always a
good time to invest globally, and there’s many reasons for that. Number one, Canada
only is really dominant in so many industries and so, if you have all of your wealth tied
up in equities in Canada, you’re going to be predominantly invested in just a few industries. When you invest globally, you’ve got the opportunity
to invest in a number of industries, so you can really diversify nicely.
But not just that. Whenever you increase your opportunity set,
I think it increases your chance of outperformance. So, you get a wider opportunity set, you get
more industries and also, you can diversify your wealth by currency as well. So, if you’ve got all your wealth tied up
in Canada, then if the Canadian dollar depreciates, a lot of your purchasing power is going to
go away. So this is a way of protecting your purchasing power, as well.>>Bill: Erin, it’s been a little over three
years now since you and Jeff Hyrich assumed management of Trimark Global Balanced Fund.
Talk a little bit about why investors should buy Trimark Global Balanced Fund.>>Erin: Well, I think it really comes down
to the fact that we follow the tried-and-true Trimark discipline. If you look at our style,
we’re very focused on finding dominant companies that can grow. We’re looking for ethical management teams
that have a good track record. We’re looking for companies that earn high returns on capital. We’re very concentrated compared to our competitors.
We’re not afraid to go where other people aren’t, go off the beaten path, look in areas
where other people aren’t looking. So, I think it really comes down to that philosophy
of being a value investor, trying to buy stocks when they’re cheap.>>Bill Walker: Thank you, Erin.

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