Members of our Ideas Factory share their latest investment thinking through three publications:
‘WorldWatch’ provides timely insight into topical macroeconomic and geopolitical issues from around the world.
‘White Papers’ offer in-depth analysis of the ideas and themes that drive our investments.
'Outlook' is a regular update on how our investment experts see markets and economies.
WorldWatch
The investment landscape shifted substantially in 4Q23, with investors
moving to price in a monetary policy pivot from the Fed. Our EM equity
strategies performed well against a backdrop of falling bond yields. Several of
our key calls generated positive alpha, including Brazilian rate-sensitive
names, Mexican nearshoring beneficiaries, Argentinian oil stocks, and Korean
memory plays. In this piece, we discuss our outlook for the coming year
and the positions that we expect to be the key drivers of potential further
alpha.
At the heart of TT's Environmental Solutions Strategy is its commitment to supporting charitable causes, directing capital towards meaningful initiatives that address environmental problems and align with the fund's values. Our innovative fee structure is designed to deliver tangible impact, with one-third of our management fees given to carefully selected environmental charities at no cost to investors. In this video, we explore four distinct charities: Heal Somerset, UWA Oceans Institute, Global Returns Project, and Thousand Year Trust, all of which the strategy actively supports.
2023 has been a perfect storm for environmental equities generally, and our investable universe in particular. But as we head into 2024, many of these headwinds are easing and a far brighter outlook beckons. In this piece we outline why, before illustrating that we have record-high upside in our portfolio by discussing five holdings that we believe could double over the next three years.
The TT Sustainable EM strategy recently celebrated its 1-year anniversary, having successfully generated alpha in challenging market conditions. In this piece we reflect on the strategy’s first year and drill down further into how it beat its benchmark.
Amid China’s woes, it is easy to forget that Asia offers some of the most exciting structural growth opportunities in the world.
Emerging Market equities have been hovering around a 20-year valuation low versus their Developed Market counterparts for the last 5 years. We believe this is about to change, with the stars aligning for a sustained period of EM outperformance. In the paper below we outline why, before discussing why we expect our EM portfolios to see even stronger performance, with our differentiated process of integrating top-down analysis and bottom-up research yielding some of the most attractive alpha opportunities that we have seen in years.
White Paper
TT’s Global SMID-Cap strategy recently celebrated its first anniversary, beating its benchmark by +8.1% gross (+6.9% net) in the year to 28th November 2023. In the three months since, it has added a further +5.4% gross (+5.1% net) of outperformance. We are delighted with these results and are pleased to see that the time we spent constructing our philosophy and process is paying off for our clients. This paper elucidates our approach to delivering Thematic Alpha, wherein we concentrate our team's investment expertise on global themes. It also delves into our Fundamental Alpha, achieved through a disciplined stock-picking framework encompassing Quality, Growth, and Valuation factors. Finally, it discusses Sustainable Alpha, leveraging TT's advanced ESG capabilities to align the portfolio with the UN Sustainable Development Goals. By combining multiple sources of alpha into our investment process, we aim to continue delivering outperformance for our clients.
As concerns mount over China’s spluttering economy and its beleaguered property sector, investors are dumping Chinese assets and the central bank has been forced to step up its defence of a sliding renminbi. With this in mind, we thought you would appreciate a brief update on our thoughts about China and its property market specifically, as well as other major Emerging Markets. We continue to believe that developing economies will remain the world’s growth engine over the next couple of years as central banks cut rates to stimulate domestic activity. Nevertheless, the outlook is mixed for markets across the asset class, highlighting the enduring importance of integrating top-down macroeconomic analysis with bottom-up stock selection.
The world is not on track to achieve the Paris Agreement temperature targets, and low carbon investing in isolation is unlikely to change this. The magnitude of the environmental crisis facing our planet requires that allocators take bold and creative action. In this paper we set out the case for supplementing a low carbon approach with an environmental solutions strategy, which we believe will grant investors access to the biggest structural growth opportunity of a generation.
We discuss the strategy’s genesis, objectives and key differentiators, before outlining why we find environmental equities so exciting looking forward.
TT International issues a rallying cry to the wider industry calling for Impact Investing 2.0, where sustainable funds give one-third of their management fees to carefully selected environmental charities, as the TT Environmental Solutions strategy does.
Following a recent research visit, EM Portfolio Manager Rob James assesses the opportunities and challenges facing Vietnam.
Outlook
Latest Asian economic and market outlook.
Latest Emerging Markets (Core) economic and market outlook.
Latest Emerging Markets (Unconstrained) economic and market outlook.
Latest Environmental Solutions outlook.
Latest ACWI ex-US economic and market outlook.
Latest UK economic and market outlook.
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TT
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