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
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.
Unique challenges in recent years have wiped out many competitors, allowing strong UK businesses to cement their leading positions. Despite this increasing dominance, valuations often remain extremely attractive, offering exceptional opportunities for investors
Covid has blown fiscal holes wide open in many emerging economies, which are now looking to plug the gap by increasing taxation of sectors benefiting from elevated commodity prices. The future of investing in EM mining stocks is more opaque and problematic than at any point since the Global Financial Crisis. Risks abound, but so do opportunities. A focus on geographies with more rational governments is the best place to start. First, get the politics right.
White Paper
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.
With ESG becoming an ever-greater focus for investors, TT’s Head of ESG provides a summary of how we integrate ESG analysis into our process to help generate superior risk-adjusted returns for our clients.
It is well understood that China’s economy is currently undergoing a great rebalancing as it shifts towards a model of consumption-based growth. However, we believe that many investors fail to grasp the implications of this transformation, which we still see as one of the most powerful and exciting investment themes in the world today. In the piece below, we outline some of the key opportunities that have arisen from China’s ongoing evolution and explain the common mistakes made by investors attempting to profit.
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 International economic and market outlook.
Latest UK economic and market outlook.
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TT
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