13 August 2019
Latest Emerging Market Viewpoints
From the North of South Capital team
Argentina: Never as good as it looks… but never as bad
Our
mantra on Argentina is that it is never as good as it looks but also never as bad as it looks. We have reduced exposure to Argentina over the
past few months as the markets increasingly priced in a certain Macri victory.
28 June 2019
Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team
The hunt for yield is back
Over the past nine months the world has changed dramatically. Towards the
end of last summer, US 10 year bond yields were at 3.2% - levels almost recognizable to someone from a time before QE and ZIRP. German 10 year bond
yields were low but clearly positive. Emerging markets were responding in ways that reflected their fundamental strengths and weaknesses – a collapse
in Turkey and Argentina, steadily rising yields elsewhere. Normalization of interest rate policy was expected and asset prices were going to reflect
this.
30 April 2019
Emerging Markets Webcast with North of South Capital
The Danger of the Monetary Illusion
Kamil Dimmich, Co-manager
and Partner of North of South Capital was recently asked by Brooks MacDonald to participate in their latest webcast.
Kamil discusses the Monetary Illusion, a term made famous by John Maynard Keynes which describes the tendency of investors to fixate on higher nominal
returns rather than focus on real returns. He explains why this is particularly true in some emerging markets and how it is possible to ensure you
don’t fall foul of this common investor trap.
29 March 2019
27 February 2019
Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team
The
last two occasions when the Chinese authorities decided to stimulate their economy, the result was a substantial increase in the prices for most commodities.
This was particularly the case in 2009 in wake of the global financial crisis. Although the stimulus in 2015-16 was quite a bit smaller, it also had
a very favourable impact on the price of commodities.
30 January 2019
Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team
Are
Emerging Market equities becoming less risky in relation to developed markets? If one were to look purely at debt to GDP ratios, savings ratios, political
stability and the level of domestic interest rates a fairly strong case could be made that our asset class looks as good, or better in a number of
29 November 2018
November Webcast Replay
With the PAM Investment Management Teams
With the current market
environment causing uncertainty and testing investors’ nerves, Pacific Asset Management invited clients to listen and take part in the Pacific Weekly
Investment Meeting. Matthew Lamb (CEO), was joined by Will Bartleet CIO / Portfolio Manager of Pacific’s range of multi-asset solutions and by our
Emerging Markets and G10 Macro rates fund teams.
26 November 2018
Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team
As
2018 draws to a close it is easy to forget that Emerging Markets were outperforming their developed counterparts only last year. This has now largely
been reversed and brings us back to where we were in 2016 in relative terms. The MSCI Emerging market index remains at least 30% cheaper than the S&P
on most measures.
31 October 2018
Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team
Taiwan remains one of our favourite markets. It enjoys the lowest cost of capital in the emerging market universe and has a large number of companies
with net cash on the balance sheet. Many of these stocks pay dividend yields in excess of 5.0% and are often majority controlled by their management.
01 October 2018
Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team
Anyone
who is familiar with our investment process will know that at North of South we like to stress the importance of the cost of capital. A flexible methodology,
which can accommodate the wide spectrum of sovereign macro conditions our corporates are exposed to, is critical to levelling the playing field for
a dollar-based investor.