Dispersion Series 9 Investment
This is an investment structured to benefit from divergent stock price performance due to rising US Inflation expectations.
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Rising inflation and divergent stocks
Inflation in the US is expected to rise due to a number of factors including supply side constraints and labour shortages. In June, the US consumer price index data showed that inflation had risen by 5.4% on the previous year. The rise in prices is also driving conversations around commodities and the much-touted commodities supercycle.
Dispersion Series 9 is an investment designed to track and capitalise on the difference between the prices of two sets of stocks – one capable of rising during high inflation periods and the other likely to be adversely affected by market conditions.
- High conviction investment opportunity designed to benefit from long and short exposure to inflation pegged sectors
- Capped downside risk and uncapped earning potential on the upside
- Designed to benefit from market volatility often caused by market uncertainty
- Exposure into Financials, Industrials, Energy, Utilities, Telecommunications and Health Care
- Expected high-performing stocks include: Bank of America, Truist Financial (Financials), Exxon Mobil (Energy), Honeywell International, United Parcel Service (Industrials)
- Expected underperforming stocks include: NextEra Energy (Utilities), Netflix, Activision Blizzard (Communication Services), AbbVie, Cigna (Health Care)
Watch this video to gain valuable insights into inflation and how investors can benefit from divergent stock prices. The video features:
- What factors are driving inflation and challenges for Central Bank
- What impact this will have on the equities market
- An investment that can benefit from inflation