Another feast for value investors, Asia-Pacific open banking, and opportunities in emerging markets

Alister Sneddon, CTO

Here are the top 3 insights for May 31st, prepared by Alister, our CTO.

Today’s Brief

  • Fidelity: Emerging markets — another feast for value investors?
  • S&P Global: The Future Of Banking — Asia-Pacific Opens Up To Open Banking
  • Franklin Templeton: Opportunities in the Next “Emerging” Emerging Market

Emerging markets: another feast for value investors?

  • “If it’s obvious, it’s obviously wrong” (sic) is an adage most famously attributed to the twentieth century financial author Joe Granville.
  • It might stand us in good stead.
  • It makes sense, when you think about it, that something that’s obvious about a market to everyone will most likely already be factored into share prices.
  • It’s the unexpected — the unobvious — that is much more likely to cause prices to move one way or the other.

Genuine Scores for the top 3 Global Emerging Markets focused funds

  • BlueOrchard Microfinance, 100
  • DoubleLine Low Duration Bond Fund, 99
  • MassMutual Select Equity Opportunities Fund, 83

The Future Of Banking: Asia-Pacific Opens Up To Open Banking

  • Legislative changes, meaningful collaborations, and proactive adoption by banks are shaping the open banking landscape in Asia-Pacific.
  • We see open API development on balance as benefitting banking customers.
  • Open banking has yet to impact bank ratings but competitive dynamics, as they evolve, may pose risks as well as opportunities for banks.

Genuine Scores for top 3 Asia Pacific ex Japan focused funds

  • Prusik Asian Equity Income, 69
  • First State Asian Equity Plus, 60
  • Stewart Investors Asia Pacific, 59

Opportunities in the Next “Emerging” Emerging Market

  • Emerging markets offer a broad opportunity set for investors.
  • However, many investors focus on the high-profile stories in Asia and Latin America, overlooking potential opportunities in other regions, as Franklin Templeton Emerging Markets Equity’s David Haglund explains.
  • He notes how Africa is often an overlooked part of the emerging-market story, and why recent investments from China reflect the growth potential for countries such as Kenya and Nigeria in particular.
  • As emerging-market investors, we’re open to potential opportunities across the frontier market universe.
  • So while there’s a lot of attention on the high-profile emerging markets in Asia and Latin America, we also cast our eyes over other regions, including Africa.

Genuine Scores for the top 3 Global Emerging Markets focused Equity funds

  • MassMutual Select Equity Opportunities Fund, 83
  • SEI Extended Market Index Fund, 65
  • USAA World Growth Fund, 60

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All the best,
Alister and the Genuine Impact Team

p.s. all Genuine Scores are accurate as of the 12th of April