GLOBAL INVESTMENT INSIGHTS

“Investing in emerging markets debt provides investors with a wide variety of investment options; from large robust economies to developed ones. From countries with strong institutional pillars to ones which are establishing them for future generations. Emerging markets debt has historically provided investors with low beta and correlation to US Treasuries and the S&P 500, thereby providing an opportunity for diversification”, comments Darren Goldman, Managing Director & EMsights Capital Group Business Leader, Artisan Partners.

Darren will be presenting at Global Investment Institute’s upcoming Fixed Income & Alternatives Investment Forum, taking place on Thursday, 7 September 2023 at the Westin Melbourne, Victoria.

To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.

**For Institutional Investors ONLY**

Macro insights: the drivers of global equity markets

In this 1-hour webinar, Aaron Anderson, Senior Vice President of Research, Investment Policy Committee at Fisher Investments shares his global equity macro insights.  

Topics discussed include:

• The new bull market and its likely direction from here.

• What’s driving valuations and market breadth – are they bullish or bearish signals?

• Early vs. late cycle indicators and their implications for Growth vs. Value and Large Caps vs. Small Caps.

• Do equity markets care about inflation and interest rates (anymore)?

• Is Japan booming while China is stalling?

• AI tailwinds will benefit more than just big tech.

“Should the macroeconomic environment materially worsen, combined with the higher rates and leverage carried by larger companies, coupled with weakened lender protections, could see default rates and, recoveries, in the event of default, be materially worse than historical levels.

“A less supportive economic environment for companies looking to source debt funding should prompt institutional investors to examine the companies, sectors and structures they are exposed to and focus their attention on making sure they have appropriate diversification, protections and compensation for the risk they are taking on.

“At Deerpath our focus has always been in the lower middle market, a part of the direct lending opportunity set that still enjoys full covenant loan terms, other lender protections and lower leverage at the company level”, comments Natalie Garcia, Managing Director, Head of Underwriting, Deerpath Capital.

Natalie will be presenting at Global Investment Institute’s upcoming Fixed Income & Alternatives Investment Forum, taking place on Thursday, 7 September 2023 at the Westin Melbourne, Victoria.

To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.

“We believe fixed income investing over the next few years is going to look quite different than the past few years.

“Our expectation is for market volatility to rise as central banks no longer desire to suppress the cost of capital, to push demand forward and stimulate growth. With rising volatility comes the risk of dislocation, which in our view calls for fixed income portfolios and fixed income asset allocation to be managed with a much more nimble and flexible approach, which contrasts with the predominant ‘siloed’ approach many managers take to fixed income investment management. The speed which credit spreads widen and subsequently recover has increased over the past decade, and most notably during the COVID crisis. This affirms our conviction that flexibility with respect to both a manager’s investment style and institutional investor asset allocation decision making will hold greater importance in achieving successful outcomes”, commented Jeff Klingelhofer, Co-Head of Investments and Managing Director, Thornburg Investment Management.

Jeff will be presenting at Global Investment Institute’s upcoming Fixed Income & Alternatives Investment Forum, taking place on Thursday, 7 September 2023 at the Westin Melbourne, Victoria.

To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.

“Large global end users (corporations), that need access to transport assets as a critical part of their supply chains, have historically not been interested in owning the assets, creating a need for off-balance sheet financing in the form of leasing capital. Given heightened regulations from Basel III and IV, banks have largely exited the transport financing business, which has allowed J.P. Morgan Asset Management’s Transport Group to position itself as a leading lessor in the worldwide maritime and energy logistics sectors”, commented Anurag Agarwal, Managing Director, Head of Portfolio Management, Global Transportation Group, J.P. Morgan Asset Management.

Investment in this asset class is suitable for investors looking for: diversification within their portfolio, or a specific allocation to a diverse alternative investment, predicatble income/uncorrelated returns, inflation protection, resilient asset class, steady cash flow or an alternative investment that is ESG aligned.

Anurag will share his expertise on the asset class at Global Investment Institute’s upcoming Fixed Income and Alternatives Investment Forum, taking place on Thursday 7 September 2023 at Westin Melbourne.

To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.

“The net-zero transition brings both risks and opportunities to the global equities/value space. On the risk end, value portfolios tilt toward carbon-intensive firms and hence are subject to transition risks associated with rising carbon prices.

“Research suggests that a portfolio tilt toward green firms is unlikely to insulate sufficiently against net-zero transition risks. There also needs to be a within sector-by-country selection process that accounts for firm adaptability to demand and supply shocks due to climate policies”, remarks Dr Harrison Hong, Academic Advisor, LSV Asset Management.

Harrison will be presenting at Global Investment Institute’s upcoming Equities Investment Forum, taking place on Wednesday, 6 September 2023 at the Westin Melbourne, Victoria.

To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.

“Despite a challenging market environment since the taper tantrum of 2013, emerging market debt has outperformed global fixed income alternatives over longer time horizons. We believe the conditions are once again in place to support an allocation to emerging markets debt. Growth differentials increasing in favour of emerging markets, peaking developed markets policy rates, and still elevated emerging markets real yields offer opportunities.

“Given the current late cycle dynamics and significant dispersion across countries in terms of fundamentals and valuations, we believe being selective among both the different segments of the market and individual countries will be key to capturing opportunities and mitigating risk in emerging markets debt”, commented Denise Simon, Managing Director, Portfolio Manager/Analyst, Lazard Asset Management.

Denise will be presenting at Global Investment Institute’s upcoming Fixed Income and Alternatives Investment Forum, taking place on Thursday 7 September 2023 at Westin Melbourne.

To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.

“It is one of the longest-running debates in investing: growth vs. value. For decades, leading financial minds and countless investors around the world have gone back and forth over which of the two major investment styles is the more effective and reliable strategy for outperforming the markets.

 2022’s volatility saw a major reversal in growth’s decade-and-a-half of dominance. Now, a tiny sliver of growth has contributed to one of the narrowest rebounds on record, with eight stocks contributing to 55% of the ACWI index’s performance in the first half of 2023, potentially setting investors up for another fall. Is your focus on style investing giving you ‘bad breadth’ and is it time to move on from style investing altogether?”, asks Rob Hinchliffe, Portfolio Manager, Head of Global Sector Cluster Research, PineBridge Investments.

Rob will be presenting at Global Investment Institute’s upcoming Equities Investment Forum, taking place on Wednesday, 6 September 2023 at the Westin Melbourne, Victoria.

To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.