EM Fund Stock Recommendations and Country Commentary (June 2, 2024)
There isn’t much new fund information or commentary as of early June, but there has been a lot of research worth highlighting over the past month.
🚨📈 this Credit Suisse Research Institute (CSRI) report (Although it’s from last year…) Have Table on page 9 qualified, A selection of the largest and oldest family and start-up companies worldwide, And in another table deeper in the report: Top 100 unicorns in the world: The Family 1000: Family Values ​​and Value Creation (Opens PDF file) – The fifth edition of the report, published by Credit Suisse Research Institute, explores companies’ business models and investment performance. Publicly traded family- and founder-owned companies and how they outperform non-family-owned companies..
🚨 Capital Ideas This piece contains useful graphics. Notable Elections (Country/Election Type/Date/Free and Fair Index/Institutional Strength) table: EM election year – The analysis shows that fiscal and monetary policies tend to be moderately relaxed during election periods, but have had little broad impact on underlying macroeconomic trends. Countries with less robust institutions may experience more pronounced and lasting impacts. – and this could be key in a year with many emerging market elections.
This article is a bit academic, but may be useful to some fund managers. Mitigating the Costs of Factor Investing in Emerging Stock Markets – In the early days of factor investment research, little attention was paid to investment universes concentrated in developed markets and transaction costs. The high transaction costs of factor investing in emerging stock markets impact optimal portfolio decisions. A simple cost mitigation approach based on total cost estimates of factor-based portfolio tilt improves net performance. Control costs indirectly using market influence structures. Limit order size based on short-term liquidity of the underlying stock.. While this cost-effective strategy offers better implementation feasibility and lower turnover rates, its negative impact on total performance is more than offset.
as follows Asia-focused fund Or, the fund manager offers a new fact sheet, commentary, research piece, podcast or webinar that may be of interest to Asian investors.
🇨🇳 matthews asia Here’s this piece: Chinese policy inflection point arrives – Andy Rothman said the move to address key challenges in China’s housing sector represents a significant shift away from downplaying the problem and a sign that further positive macro action could be on the way.
🇨🇳 BNP Paribas AM Here is this piece: Is China’s Politburo finally putting its money where its mouth is? – Market sentiment toward China improved as China’s Politburo proposed additional stimulus measures and renewed focus on structural reforms. China has promised more support for its economy and its currently depressed real estate market. Chinese stocks are up nearly 20% from February lows. However, to further brighten the economic and asset market outlook, monetary and fiscal policies must be further relaxed.
