Risks vs Rewards of including a GCC equity allocation in your EM exposure

Mark Krombas, Lead Portfolio Manager
Qatar Insurance Co


The GCC region’s GDP is $1.7tn (larger than Canada) and yet five years ago their stock markets were not in any Global Emerging market Benchmarks. 2019 saw the largest GCC market of Saudi Arabia enter the MSCI Index taking the GCC’s weight to 5% of the MSCI Emerging market Index. The GCC markets are not well understood and vastly under owned by global investors. We aim to introduce GCC Equities and discuss the opportunities they offer. We aim to discuss the GCC region and its relationship with the oil price. We aim to discuss the geopolitical risks in the GCC region. We aim to compare the GCC economic outlook with EM and developed markets. We aim to compare valuations with the wider EM universe. We explain why GCC equities could form a part of a wider emerging market exposure.

 

Investing in the Developing World: Build, Preserve, Reinforce

David Heiny, Strategy Specialist, Artisan Partners

The Artisan Partners Developing World Team employs a Build, Preserve, Reinforce framework; a proven approach to investing in emerging markets. David Heiny, strategy specialist for the team, will walk through this approach including:

 

• Delivering a compounding outcome driven by low penetration domestic demand and risk management
• Where the team is finding the most attractive opportunitiesIn today's world of negative rates and very low yields, where can credit investors find attractive risk-adjusted returns?

 

In today's world of negative rates and very low yields, where can credit investors find attractive risk-adjusted returns?

Ritchie Oriol, Investment Strategist, Lord Abbett

• In our session, we aim to explain how Lord Abbett's Multi Sector Income portfolio is well-positioned to take advantage of relative value opportunities in the current market environment. The portfolio is diversified across sectors, and has been strategically designed by our quantitative team who work across our fixed income platform. The team have the flexibility to adjust allocations to exploit opportunities across HY, IG, securitised credit and loans.

• Lord Abbett is one of the pioneers in multi-sector fixed income investing, and we incorporate an informed and expansive top-down macro view on the broader economy and on credit markets in particular with a rigorous and fundamentally driven view on individual issuers. We combine these approaches, along with quantitatively driven portfolio construction tools and a focus on risk management, to create a range of investment strategies designed to outperform across a range of market conditions and with a high level of consistency. 

• Our focus on rigorous fundamental, bottom up credit research sets us apart, and our ability to recognize the best relative value has led to strong long-term performance.