In This Week’s Issue…

by Alexander Kalis | Managing Partner & Head of Investments at Milltrust International

Invitation to Meet
Dusit Thani Sri Lanka
in Singapore

22 November 2018
Unique Sri Lanka Beachfront Balapitiya Real Estate Investment Opportunity

Sri Lanka is one of the world’s fastest growing tourist destinations, and a frontier investment market for Milltrust International. We have partnered with Dusit Thani, one of the most recognised Asian-based multinational hospitality companies with 29 hotels and resorts in 18 countries, to offer our friends and investors the opportunity to invest in a unique real estate opportunity and share the magic of the only 5 star beachfront apartments in Sri Lanka.

Beachfront, Balapitiya is located on a lush, tropical site featuring over 1 kilometre of direct access to two pristine beaches on Sri Lanka’s famous West Coast between Bentota and Hikkaduwa. Available immediately is a limited release of luxury apartments now under construction. Guaranteed returns of 6% net per annum for 5 years is offered for apartments managed by Dusit Thani (by a leading International Bank) & 3 weeks a year free accommodation. Prices start circa USD 200,000 for one bedroom apartments

Please join us on the 22nd of November 2018 at the Tanglin Club in Singapore to learn more. Private meetings also possible on the 22nd or 23rd of November. ​  Register

 

Milltrust is Hiring
an Investment Director for
the British Innovation Fund (BIF)

The BIF, established in 2016 and backed by long- term patient capital, invests alongside other experienced VCs in the areas of medtech, AI, agri-science and nanotechnology. Investments are derived from or associated with leading UK universities, where Milltrust maintains a close and expanding network. To date the BIF has invested in firms connected to the universities of Cambridge, Edinburgh, Exeter and Oxford, including a new commercialisation vehicle for the world renowned Roslin Institute.

Reporting to the CIO, the Investment Director will continue to build our presence in the UK innovation space, assess, recommend and present investment opportunities to the Investment Advisory Committee and be jointly responsible for capital raising targets as the BIF moves into the next phase of growth. The role would suit an ambitious mid-level investment professional looking to make the next leap professionally into a more senior role, in highly entrepreneurial asset management business. The compensation is expected to have a significant performance-related component. He or she will be located either at our London office or from a home office in one of the main UK University hubs.

For further information please contact Mr Griff Williams, CIO, British Innovation Fund:
griff@milltrust.com
T: +44(0)208 123 8347   
Contact Us

Key Story

The Road Ahead for EM
by Eric Anderson, Senior Portfolio Manager

October was the worst month for global equity markets since May 2012 and the worst month for global Emerging Markets since May 2015.  Risk-off mood dominated Emerging Markets triggered by declines in U.S. equities, amid various uncertainties including U.S.-China trade frictions.   Where does that leave us today:

  • EM equity valuations are now back to the same levels as January 2016 before the start of the huge US$ 8 trillion upswing in the asset class.
  • Earnings expectations of Emerging Market companies have increased nearly 40%since early 2016, so investors can buy EM stocks today at the same price multiple but for much higher profitability.
  • When looking at the price to book ratio, EM equities are now trading at an over 35% discountto their developed world counterparts, one of the biggest differences in the last 10 years.  Industry experts have pointed out that since 2001, when the discount has been this wide, EM stocks have typically outperformed developed market equities over the next 5 years.

Download the latest fact sheet on the Milltrust Global Emerging Markets Fund here:

Key Soundbites

  • US: The US Fed remains on course to a ‘gradual tightening’, thanks to sustained strong economic growth and falling unemployment rate. The economic risks remain roughly balanced.

  • OIL: US oil falls below $60 as US bear market deepens and The US, Russia and Saudi Arabia pump at or near record highs, producing more than 33 million barrels per day (bpd), a third of the world’s oil.
  • CHINA: 22 percent of China’s urban housing stock is unoccupied which adds up to more than 50 million empty homes.
  • BRAZIL: Can This Finance Star Pull Brazil’s Economy Out of the Dumps? New “superminister” Guedes has said his priorities are to sell off dozens of state companies, rein in the pension-system deficit, deregulate industries, and cut taxes to attract investment and create jobs.
  • INDIA: India’s government is asking the central bank to hand over a part of its surplus reserves and loosen liquidity norms for lenders — demands that are likely to escalate a standoff with the monetary authority that’s fiercely protective of its independence.

Key Investment

Lojas Americanas is a Brazilian  retail chain founded in 1929 in the city of Niterói, Rio de Janeiro. Currently, the company has 1306 stores in all 26 Brazilian states and in the Brasília-area Federal District. The network sells over 80 thousand items of four thousand different companies. In January 2007, Lojas Americanas acquired the Brazilian operations of the network of video rental Blockbuster for R$186.2 million and adapted to store the model Americanas Express.

Key Charts

Source: http://www.indexq.org/wide.php,
08-November-2018

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