EM Fund Stock Picks & Country Commentaries (August 10, 2025)
Pop Mart’s Labubus craze, why Indonesian stocks are shunned, identifying “winning businesses," Iraq trip report, telecom towers stocks, investing in rare earths, June/July/Q2 fund updates, etc.
Previous posts have touched on current and looming problems involving private equity with Trump, unfortunately, signing an executive order that might start the process to unload potentially toxic alternative assets onto pensions and the general investing population:
📰 Big changes could be coming to your 401(k) (CNN) August 2025
President Donald Trump on Thursday signed an executive order that could make it easier for 401(k)s and other workplace retirement plans to offer employees the option of investing some of their savings in alternative investments including private equity, long the domain of institutional and “accredited” high-net-worth investors…
… It calls for the Labor Department to “reexamine” its “past and present guidance regarding a fiduciary’s duties under the Employee Retirement Income Security Act of 1974.” The DOL must “clarify” its position on alternative assets – which also include real estate, commodities and digital assets – and “identify the criteria that fiduciaries should use to prudently balance potentially higher expenses against the objectives of seeking greater long-term net returns and broader diversification of investments.”
The order also directs the Securities and Exchange Commission to make it easier for participants in workplace plans to gain access to alternative assets.
And:
There has been a steady push in recent months by the private equity and credit industry to gain access to the more than $12 trillion market in defined-contribution workplace savings plans.
While there is no law prohibiting plan sponsors from offering private market investments to employees, they have traditionally steered clear of them because they have a fiduciary duty to provide a menu of prudent, reasonably priced investments to plan participants.
IF such changes occur (irrespective of whether or not any of these changes are a good idea), it will mean less money going into traditional asset classes which are easier to understand and arguable safer for that reason…
As of early August as when we enter what is probably the peak of summer vacation season, some July along with more Q2 fund updates have dropped (our continuously updated post containing all funds is here) plus new research:
New Asia Fund Documents & Research
🔬🇨🇳 China’s innovation to become a catalyst for earnings growth: Part 2 + China’s new consumerism fueled by the young generation: Part 1 (Invesco)
In a two-part series, we will detail our thoughts on each of these drivers. In Part 1, we will focus on “China’s new consumerism”. In Part 2 we will focus on “Innovation”.
In Part 2 of the series, we focus on a key driver for the equity market – China’s innovation. Many of the leaders in innovation are listed in Hong Kong.
🔬🇨🇳 From Needs to Wants: The Emotional Turn in Chinese Consumerism (Invesco) - No longer driven solely by price or practicality, today’s consumers – particularly Generation Z – are seeking something more meaningful: emotional resonance, personal identity, and moments of joy. This shift is reshaping how brands connect with audiences, elevating storytelling, design, and cultural relevance as key drivers of value.
🔬🇨🇳 Labubus: How Pop Mart’s Newest Craze Reflects Chinese Cultural Influence in the U.S. (KraneShares) - Chinese culture has influenced popular consumer trends for years. Now, a Chinese designer toy collectible has taken the world by storm. Pop Mart International Group (HKG: 9992 / FRA: 735 / OTCMKTS: PMRTY / POPMF), a Chinese company known for selling artistic collectible toys in blind-boxes, continues to prosper thanks to its furry little friends: Labubus. The growing debate on whether Labubus are adorable or terrifying won’t hinder Pop Mart’s overwhelming success, especially here in the U.S. The KraneShares CSI China Internet ETF (Ticker: KWEB) has secured a front row seat to the Pop Mart action as Labubus are sold through two of KWEB’s top holdings: Alibaba Group Holding Ltd. and JD.com Inc. Year-to-date Pop Mart stock is up 186.79%. So, what is it about Labubus that has allowed China to further drive the global culture?