Choon Siong L.’s Post

Emerging markets (EM) investors must simultaneously wear two hats: that of a bottom-up equities analyst seeking to identify the innovative private-sector companies that will likely drive these regions' future economic growth, and that of a keen observer of a country's macro policy, as this realm considerably affects the business environment and, thus, investment returns #CapitalAtRisk #ForProfessionalsOnly #MarketingCommunication

We hosted a webinar last week on why EM ex-China allocations will disappoint. We have heard from several allocators over the last 2 years, on their decision to move away from EM and move into EM ex-China allocation. A recent article in the Financial Times showed the surge in flows into EM ex-China passive and active funds. See the full webinar video in this link: https://lnkd.in/dqpH-CAc We raised the same issues that are germane to an EM allocation. A grouping of countries where risk and return are uncertain. The under whelming returns thus should not be surprising. EM ex-China is in fact even more concentrated with uncertain risk/return. We understand the allocators conundrum, especially in public equities. The MSCI index are no longer used only for performance measurement. The weights of the regions and countries in the MSCI index is also used as a guide for country/region allocations. This is convenient but may not be ideal. As many allocators have realised. We have long argued that Indian Public Equities deserves a standalone allocation US and Indian Public Equities should be the mandatory growth allocation in your global portfolio. India is not to be bracketed with EM, EM ex China, BRIC. India is not diversification. This is more than true in the coming Trump administration. If you are a CEO of a global Multinational Corporation or a Chief Investment Officer of a large global pension fund, sovereign wealth fund, insurance company or asset manager with a high allocation to Emerging Markets, India should be least of your concerns for now. Donald Trump has won and all the scenarios that your staff planned around his potential win will now start playing out in real time. Trump’s ‘America First’ and ‘Make America Great Again’ rhetoric and soon to be policies, will impact countries and corporations who have: a) a commodity in which US has/wants dominance (oil & gas – Middle East, Brazil, Indonesia); b) high technology at scale (chips, AI, new energy – Taiwan, South Korea, China, EU); c) a large goods trade surplus with US (China, Mexico, Eastern EU, ASEAN) and d) dependence on US foreign policy (Russia/Ukraine, Israel/ME, Taiwan). The Indian state, the Indian economy and most Indian corporations do not directly fall under any of these categories

What is CLSA and why is its report important? CLSA (Credit Lyonnais Securities Asia) is a leading investment and brokerage firm headquartered in Hong Kong. It specializes in equities research, trading, investment banking, and asset management, with a strong focus on the Asia-Pacific region. CLSA is well-regarded for its in-depth research reports and analysis, particularly concerning emerging markets, macroeconomic trends, and sector-specific insights. The firm was initially established as the Asian brokerage and investment arm of Crédit Lyonnais, a French banking group. It has since evolved into a major player in global financial markets, currently operating as a subsidiary of CITIC Securities, China's largest securities company. Why is CLSA's report important? 1. Global Influence: CLSA's reports are widely read by institutional investors, fund managers, and policymakers globally. Their insights often influence market sentiment and investment decisions. 2. Research Quality: CLSA is renowned for its rigorous and independent research. Its analysts are considered thought leaders, and their reports often include actionable investment ideas backed by extensive data. 3. Market Sentiment Impact: Changes in CLSA's allocation strategies—such as the recent overweight position on India—can signal shifts in global investment flows. This is particularly relevant for emerging markets, where foreign institutional investments play a significant role. 4. Sector and Stock Picks: CLSA's recommendations often identify high-potential sectors and companies, making their reports crucial for investors looking for detailed, high-conviction picks. 5. Economic and Policy Context: CLSA’s analyses integrate macroeconomic, policy, and geopolitical factors, providing a comprehensive outlook that extends beyond market movements. 1/2

Global equity markets posted mixed June results and wrapped up a productive first half of the year. Notwithstanding bouts of volatility, equity returns were fuelled by a resilient global economy, relatively strong corporate earnings, and optimism around the AI investment theme. Read the latest market news from Scotia Wealth Management - it’s on our website now. https://lnkd.in/eGb4dMBZ #kentville #annapolisvalley #investing

Global equity markets posted mixed June results and wrapped up a productive first half of the year. Notwithstanding bouts of volatility, equity returns were fuelled by a resilient global economy, relatively strong corporate earnings, and optimism around the AI investment theme. Read the latest market news from Scotia Wealth Management - it’s on our website now. https://lnkd.in/gjVeEdBh #kentville #annapolisvalley #investing

Staying up to date on investment market news can help you make informed decisions about your wealth. From consumer confidence rising in the UK to the first interest rate cut in Europe, find out what happened across the global markets in June 2024 by clicking the link below.

Highlights of the May Investment Manager Index from our friends at S&P Global Market Intelligence • Strong revival of risk-on sentiment: IMI headline Risk Appetite Index highest since Nov. 2021(+5% in April to +28% in May) • Sentiment drivers: Shareholder returns and equity fundamentals • Risks: Rates, valuations, and geopolitics • Bullish sentiment in 9 of the 11 sectors, large rebound in tech • Capital allocation: Rebound in cash dividends and share buybacks • Earnings: Increasingly net positive on recent sequential quarterly upgrades in 2024 vs downgrades seen over 2022 and 2023 • Main sustainability issues: Data privacy and executive compensation https://lnkd.in/eDVfrnT2

According to Schroders’ Global Investor Insights Survey, investors in the Asia-Pacific region are increasingly focusing on global equities and private equity. This trend is driven by major themes such as deglobalisation, disruption, and decarbonisation. The survey found that 61% of APAC investors are confident in achieving their return expectations over the next 1-2 years, similar to their global peers. Additionally, 51% of APAC investors plan to increase their allocation to global equities, and 53% intend to boost their investments in private equity within the next 12 months. The main concerns for these investors include high interest rates, central bank policies, and potential economic downturns https://lnkd.in/guQRTQMU

Global equity markets posted mixed June results and wrapped up a productive first half of the year. Notwithstanding bouts of volatility, equity returns were fuelled by a resilient global economy, relatively strong corporate earnings, and optimism around the AI investment theme. Read the latest market news from Scotia Wealth Management - it’s on our website now. https://lnkd.in/gTPp568U #wealthmanagement #marketupdate #investing #langleyBC

Understanding International Investments: The Long-Term Impact on Your Portfolio International portfolio diversification is a relatively new concept and it was common practice for US investors to invest domestically. Since then, though, overseas diversification has delivered where investing in foreign securities does not necessarily increase a portfolio’s returns, but reduces risk. 1️⃣ Beyond Volatility: Deep risk assesses potential long-term damage to a portfolio's purchasing power, not just short-term market fluctuations. 2️⃣ Historical Perspective: Analyzing data from 1901, US bonds, stocks, and international investments show varied deep risk across different historical periods. 3️⃣ US vs. International: Pre-1950, international bonds and equities faced greater deep risk than US investments, often aligning with major global events like wars. 4️⃣ Modern Diversification: Post-1950, international diversification has reduced deep risk, making global investments a crucial part of a balanced portfolio. 5️⃣ Inflation's Role: Deep risk emphasizes after-inflation performance, highlighting the importance of maintaining purchasing power over nominal returns. #InvestmentStrategy #PortfolioManagement #FinancialPlanning #InflationProtection