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Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team

We have written a number of times in the past regarding our investment process which has a clear focus on value. Our definition of value is relative and we believe that measuring value only in an absolute sense is dangerous. A low price earnings ratio or high dividend yield in isolation provides only a partial indication of a company’s worth. Stocks are a very long duration instrument – the typical analyst forecast period of 2-3 years usually only accounts for less than 10% of the value of the business. Therefore, it is imperative to have a robust process in determining the cost of capital which is used to discount and value the future cash flows. 

EM value specialists - North of South Capital
Hear from our highly experienced team

Matt Linsey, Lead Portfolio Manager and Partner of North & South Capital and Kamil Dimmich, Co-manager and Partner outline their unique interpretation of value investing, and why it’s so critical to consider the ‘Cost of Capital’ when investing across Emerging Markets.  

Will Bartleet, CIO and Portfolio Manager of Pacific Multi-Asset
Opportunities in energy stocks

Energy companies have been in the doldrums for a decade, generating no returns for investors despite generous dividends, whilst global equities have returned nearly 80%. The obvious culprit has been the oil price which is down by a quarter over the same period as the phrase “commodity super cycle” crashed out of the investment lexicon. With the usual enthusiasm to build capacity in the good times, oil companies kept on spending for a full five years after the peak in the oil price. The additional capacity pushed the market into over-supply and the oil price crashed a year later. Not so super. 

Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team

The continued rise in U.S. dollar interest rates is now beginning to have a significant impact on those markets that have been most dependent on external financing. This in turn has created a negative perception of the entire Emerging Market asset class. Is this correct?   

Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team

There has been a great deal of confusion over the past year and a half regarding the exact meaning of many pronouncements coming from the Trump administration regarding foreign policy. The turnover of senior staff, particularly the recent departure of Secretary of State Tillison, has only added to this level of uncertainty. 

In the latest of our Multi-Asset Master Classes, Matthew Lamb, CEO of Pacific AM and Will Bartleet, CIO/Portfolio Manager of Pacific Multi-Asset look back at Q1 2018, discuss the current global investment outlook and what the return of volatility has meant for global equities and bonds. They also discuss how the Pacific Multi-Asset Portfolio is positioned and consider where the opportunities are going forward. 

Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team

Over the past five years, the Korean index has risen at an annualised rate of 5.6% in U.S. dollars, almost exactly in line with the global emerging market index over the same time period. 

Investment Conundrums: Pacific AM's Bartleet on why his single largest concern is complacency in markets
Pacific Asset Management's Will Bartleet speaks to Investment Week's Tom Eckett.

Read the full article in Investment Week here.  

Pacific Asset Management secures SCA licence in the UAE

Pacific Asset Management recently joined an exclusive list of non-UAE based asset managers, by successfully obtaining approval for the registration of its Multi-Asset Accumulator range of funds in the United Arab Emirates (UAE). 

As reported in International Adviser on the 27th February 2018, this registration allows for the funds’ promotion through an association with a locally registered private bank.  

Latest Emerging Market Viewpoints
From Matt Linsey and the North of South Capital team

The recent market sell-off was different in two regards. The U.S. dollar was not viewed as a safe haven and Emerging Market equities did not underperform their developed market counterparts.

This was even more surprising as the catalyst for the sell-off was rising U.S. interest rates. Normally, this would be supportive of the U.S. currency due to widening interest rate differentials and the role of the dollar as the world’s reserve currency.