EM Fund Stock Picks & Country Commentaries (June 30, 2024)
Asians stocks delivering dividend surprises, profiting from EM disruptors + disruptees, how Made In China + India’s service economy came to be, KYO approach for EM investing, 5 Asia megatrends, etc.
As of the end of June, more May factsheets, new research, and several interesting fund webinars or podcasts have become available:
Sweden based East Capital has this interesting piece about their Know Your Owners (KYO) approach which noted that when the largest shareholder owns no more than 25-30% of a company, it spurs cooperation and collaboration: Key success factor for emerging markets investors: the KYO approach - As they do in developed markets, investors looking for promising equity investments in emerging economies typically begin their search by looking at a company’s P&L (profit and loss) and other financial documents. Our experience has shown that it’s the wrong place to start. In fact, it all begins with the owners.
Robecco has this piece: Five key insights on emerging markets equities - Emerging markets have always been considered the wild west (or east) of equity investing. In this piece, two veteran Robeco portfolio managers share five lessons they have learned investing in EM in the past three decades…
The following funds or fund managers have new factsheets, commentaries, research pieces, podcasts or webinars that would interest investors in Asia:
Matthews Asia has these pieces:
🎥 Emerging Markets: Q2 CIO Update (11:49 Minutes) - Chief Investment Officer Sean Taylor provides a Q2 update on what’s driving emerging market growth, a regional outlook on key countries, the impact of the 2024 global election cycle, and why country selection is a key risk control in seeking opportunities.
Q2 2024 CIO Review and Outlook - The performance of emerging markets has been steady, aided by technology and AI-related growth in Asia, and a generally supportive macro environment… China remains challenging though we see opportunities in stocks that are improving earnings and margins and companies with robust dividend yield support and share buybacks… The U.S. election will likely bring geopolitical volatility across several emerging markets and we believe it will mean country selection is a key risk control when seeking opportunities.
🇨🇳 Identifying Recovery Catalysts in China - While China has a number of challenges there are upside drivers that investors can align with to potentially enhance long-term investment returns… Industrials, digital platforms, ecommerce and consumer discretionary businesses have performed well and are continuing to make progress… Geopolitical tensions, currency weakness and deflationary pressures remain significant headwinds that investors should still be mindful of.
Invesco has these pieces with a number of potentially useful slides, graphics or tables:
📈 Asia Dragon Trust Plc (LON: DGN)’s May factsheet (detailed economic and portfolio - also under Key documents) mentioned or discussed a number of stocks.