EM Fund Stock Picks & Country Commentaries (September 15, 2024)

India is getting ALOT of attention from the fund herd, all about Li Lu, investing in China EVs, ASEAN political shifts, geopolitics of supply chains, pulp/paper/packaging opportunities, etc.

With summer over, there are plenty of new research pieces (along with some August factsheets or commentaries) available with India in particular clearly getting attention from the fund management herd given the volume of pieces over the past 2 weeks:

• 🔬 Lazard has this report: The Geopolitics of Supply Chains - In this report, Lazard’s Geopolitical Advisory team examines the factors that made China the leading choice for offshoring, the reasons behind supply chain shifts, and evaluates five countries—India, Vietnam, Mexico, Poland, and Thailand—that are becoming increasingly prominent supply chain alternatives in an evolving geopolitical landscape… The report highlights strengths and risks in each country, describes trends in foreign direct investment across different sectors, and provides a framework that can help guide companies in formulating entry strategies and setting investment priorities.

• 🔬 This Robecco piece has charts covering 10 fintech banks around the world: The neobank era has arrived - Neobanks, which are challenging traditional banks with their digital-only banking services, have been growing fast and grabbing market share from conventional rivals worldwide. Now profitability is the focus and we believe the neobank era has truly arrived. Insight Summary:

  1. Common elements but unique business models

  2. Diversified revenue streams underpin positive outlook

  3. Focus shifts to profitable growth as opposed to profit at any cost

• 🔬 PGIM has this report: 2024 Global Risk Report: Resilient Investing Amid Geopolitical Uncertainty - PGIM’s survey captured a growing sentiment that geopolitics have emerged as the top risk facing global markets. As geopolitical risk changes the way institutional investors construct their portfolios, this research helps answer complex questions:

  • What are the most significant risks facing institutions in the next two years?

  • How can investors identify winners and losers in this uncertain environment?

  • What actions can investors take to mitigate geopolitical risk and capture emerging opportunities?

• 🎙️PGIM has this podcast episode: Global Elections in Focus: The Impact on Investors and the World Economy - This episode of The Outthinking Investor takes a closer look at elections around the world, the issues most important to voters, the challenges that political leaders face, and election season’s potential short- and long-term implications for investors. Our guests are Jeanne Sheehan Zaino, professor of political science and international studies at Iona University and author of “American Democracy in Crisis”; Morris Fiorina, Wendt Family Professor at Stanford University and senior fellow at the Hoover Institution; and Taggart Davis, Vice President of Government Affairs at PGIM.

• The following funds or fund managers have new factsheets, commentaries, research pieces, podcasts or webinars that would interest investors in Asia: