India June 2017

Global: Emerging & Frontier Markets | Thematic: Taking a fresh look at India.

Full PDF: Investment Update – Spring 2017

It can pay to invest in Emerging & Frontier Markets

We have investigated the recent performance of Emerging Markets and also assessed how India has faired since we initially commented on our outlook for India back in late 2015.

Domestic (Indian) Policies have driven performance contrary to what many believed

It is no surprise that India has done well. Most frequently, the demographic trend is used to describe the opportunity in India. We are more differentiated than that and suggest that a continuous, strong investment plan is enabling the economy to remain resilient and grow.

Fiscal Prudence in times of uncertainty

The decision to devalue the currency late 2016 hit the markets with a surprise and no doubt, caused stir both within the political elite and consumers in India. However, and on balance, the move was a savvy one to recalibrate the ‘way business is done around India’.

Continuing stock market performance

It may surprise Developed Market investors, but India has seen significant investor interest and investment flows have been strong.

We believe that a pull-back is necessary to give the markets breathing room to absorb the recent rally and find a new equilibrium. The market feels somewhat over-bought at recent levels.

Equity Market Valuation

As per above, we feel that some stocks have had a significant run and we doubt that this can continue without being challenged at some stage. For that reason, we are cautious on general ETF products at this stage as these are ‘trend-following’ by design and miss an active overlay. We would certainly recommend to be more selective at this stage.

Outlook

We continue to favour India over China – and we say this with a 5-7 year horizon in mind. We have allocated to China and India over the years as Principal and Fund Manager investors: we suggest that India has simply more juice left in the tank and has not build its recent economic development entirely on credit which should make it more resilient vs China in the event of a global sell-off.


Allocator Quarterly Q1 2016

Frontier Markets | We invite our readers to move past the artificial segmentation of the various markets and the convenient labels which suggest that some markets are more acceptable than others.

A lot has been and will be written about what happened in the Frontier Markets in 2015 and Q1 2016. We have also spent time discussing the events of 2015 and the challenges ahead. Clearly, the hype surrounding BRICs, N-11 and other elusive acronyms has created awareness of and fashion for a number of emerging and indeed frontier markets. However, it is important to look past the short-term noise and focus on the structural challenges which will impact people.

For the full PDF publication, click here.


Press Release - CITE signs LR Global ex Rockefeller Family Office Asset Manager

LR Managers chooses CITE Investments and its wholly owned subsidiary iGen Capital as their Investor Relations, PR and Corporate Governance partner

Click here for the PDF Press Release: LR Managers (New York) and CITE Investments (London) have agreed to the terms of a Master Distribution Agreement that will see both entities collaborating on investor relations, PR and corporate governance.

LR Managers is one of the oldest independent Frontier Markets asset management companies. It was incubated out of the Rockefeller Family Office and launched in 1997. The firm quickly demonstrated performance success in the early years despite launching just ahead of the Asian crisis. At peak, prior to 2008, the firm managed $900m in assets. The firm is now seeking to rebuild the business to take full advantage of their core expertise. The team continues to employ 12 research staff in their ‘field’-office in Vietnam whilst the management team is based in New York bringing total headcount to 20.

“We have had a lot to digest over the past few years, not least the passing of four of our key principals during the 2006-2007 period. Despite the various headwinds over the years, we continued to develop the business and we are positive that our continued investment in our business infrastructure as well as the continuity of our team will sit well with institutional allocators. Collaborating with CITE on conveying our refreshed story with renewed focus on Frontier Markets comes at a time when we both believe that these markets will see a strong rebound,” says Don LaGuardia, Founder and CEO LR Managers. “The timing for our engagement could not be better.”

“For CITE, teaming up with LR Managers was an obvious choice”, Anjelika Klamp, Global Head of Portfolio Management, CITE Investments confirms. “The team has significant history, strong legacy relationships in most, if not all, Frontier Markets and a portfolio management history that has demonstrated that they can manage significant assets in small but very nimble markets. We were impressed by their ability to select companies that one would not ordinarily find when allocating to mainstream groups.”

see: http://www.lrglobal.com/