Extracting growth alpha in emerging markets

Emerging markets are home to the world’s fastest-growing economies and their long-term equity returns have
attracted investment flows. In the past several years, however, many investors may have been disappointed by
lacklustre results from their emerging markets allocations.
Investing in emerging markets companies with strong secular growth can lead to significant alpha generation over
time and we believe the best way to capture this is to focus on the structural growth latent in select emerging
markets companies.
In our view, the emerging markets growth trajectory remains strong and the disconnect experienced by some
investors may be attributed to indexes and low-tracking error investment approaches that have been slow to reflect
fundamental changes in emerging markets growth dynamics.
As most mainstream emerging markets indexes underrepresent dynamic secular growth companies, we believe
portfolios are best constructed agnostic of index geographic and sector weights.

Potential storms ahead in the banking sector

Panellists discuss the possible impact of corporate failures on European banks coming out of the pandemic, and note central banks juggling act around digital currencies; unable to halt their arrival but still having to marshall progress and ensure the technology doesn’t weaken financial stability. The session examined the structural trends in the financial sector that have been entire amplified or altered by the COVID crisis.

New managers struggle to get ahead via zoom

The interruptions to work and the revolution of technological tools in 2020 have changed thee way investors assess funds managers. A discussion around due diligence in a lockdown environment finds that allocators have tended to stick with existing relationships through the pandemic making it difficult for managers approaching investors for the first time to form relationships and win mandates.

Debunking distressed debt

The sharp market falls triggered by the pandemic brought the longest recovery ever in modern finance to an abrupt end. But despite the turmoil unleashed by COVID, it has not wrung out the market excesses of the last 13-year cycle. It means another wave of corporate failures could appear on the horizon in a shorter timeframe than expected, and offer more opportunities for distressed debt investors, according to Victor Khosla founder of SVP Global.

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