Milltrust Alert

In This Week’s Issue…

By Alexander Kalis Managing Partner & Head of Investments at Milltrust International

China has concluded its Communist Party five-yearly plenum in which President Xi Jinping consolidated his power. Gary Greenberg at Hermes Investment Management shares his views and analysis on the real change taking place in China, in particular in the global technology sector.

In India, the IT sector continues to be supported by high returns on capital according to UTI’s Head of Equity, with principal challenges revolving around the optimal deployment of corporate cash flows.

Meanwhile, Milltrust’s ASEAN Fund managers explain the favourable growth prospects of the Southeast Asian region despite possible inflation headwinds in 2018, coupled with a potentially stronger USD.

In Pakistan, following the reclassification of the country into the MSCI Emerging Markets index in May this year, significant risks and negative developments have built up, leading to a sell off in the equity markets in recent weeks. T Rowe price details the challenges facing the country and investors today.

In Latin America, Brazil is witnessing a strong cyclical recovery despite the uncertain political environment. Scott Piper, manager of the Milltrust Latin America Fund shares his views.

In the Middle East, investor concerns over Saudi Arabia have been overblown according to Khurram Shehzad, manager of the Milltrust SEDCO MENA Fund, and investors should see the current scenario as a long term investment opportunity as the economy opens up to many sectors for investment.

Finally, Russia has come out of recession and the World Bank forecasts that the economy will grow by 1.7 percent this year and next, and by 1.8 percent in 2019.

For deeper insights from Milltrust, we invite you to download our complimentary Milltrust Q4 EM Insights Magazine.

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