‘You have to think about yields’: BMO Global Asset expert on Telco underperformance

As investors grow cautious towards the Telecom sector due to underperformance amid high competition within the TSX, one global asset expert is focusing on TSX financials, which have high yields and diversified business that extend beyond Canadian soil.

“You have to think about yields,” said Sadiq Adatia, CIO of BMO Global Asset Management, in an interview with BNN Bloomberg on Tuesday.

“When you think about fixed income — things like financials or, again, telecoms, you kill these with other areas that would generally have higher yields,” he explained. 

“You also want to get growth out of those yields. I just don’t see that (with Telecoms) in the same way I would see that in other areas like financials.”