Unlocking knowledge, emerging Asia, and retail is changing not dying

Alister Sneddon, CTO

Here are the top 3 insights for May 29th, prepared by Alister, our CTO.

Today’s Brief

  • NN Investment Partners: Unlocking knowledge
  • Eastspring Investments: Emerging Asia — I want to break free!
  • Baillie Gifford: Retail is Changing Not Dying

Unlocking knowledge

  • Active investors must deliver “alpha” to justify their existence alongside passive investors
  • The drive for alpha is also indispensable for passive investors
  • Observing market inefficiencies does not make them easy to exploit

Genuine Scores for the top 3 funds

  • iShares Ultra Short-Term Bond ETF, 100
  • PGIM Core Short-Term Bond Fund, 100
  • Barak Structured Trade Finance, 100

Emerging Asia — I want to break free!

  • On the surface, this performance seems counter intuitive.
  • EM economic growth, for example, has consistently outpaced that of the Developed Markets (DMs), notably over the 2008/9 financial crisis — when the EMs recorded growth, albeit lower, while the DM economies shrank.
  • This period should have convinced critics that EMs have developed their own internal growth dynamics.
  • Clearly, it did not — although it is naïve to argue that EMs will be completely independent of world activity.
  • EM equities did swing back into favour in 2017 (briefly) only to give back around half the year’s gains in the subsequent twelve months.

Genuine Scores for top 3 Asia Pacific focused Equity funds

  • JPM Pacific Equity, 51
  • Fidelity Pacific Basin Fund, 47
  • Templeton Dragon Fund, 46

Retail is Changing Not Dying

  • The world of retail is undergoing a level of change not seen since the industrial revolution.
  • However, if retailers, governments and shoppers work together to embrace the change, we can all benefit, says brand expert and author Mark Pilkington.
  • The demise of the High Street is attributed largely to the ‘Amazon effect’.
  • Are there other factors?

Genuine Scores for the top 3 Internet & Direct Marketing Retail stocks

  • Cango, 62
  • Takkt, 60
  • Groupon, 60

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All the best,
Alister and the Genuine Impact Team

p.s. all Genuine Scores are accurate as of the 11th of April