By Annabel Brodie-Smith
Hello
How are we all getting on in lockdown? For me, my family, colleagues and almost everyone I speak to it’s really beginning to drag now. It’s so repetitive – every day is Groundhog Day.
Combining work, home schooling, the demands of my Mother who’s staying with us and the never-ending household chores is challenging to say the least! I won’t be one of these people who are learning a new language, taking up yoga and posting pictures of banana bread on the internet…
Having said that, I can’t complain – we are all healthy, financially secure and I like the long walks in the Oxfordshire countryside.
On Monday I left Oxfordshire for China, Turkey, Mexico and Russia… Yes it was a virtual trip to talk to emerging markets managers - Andrew Ness of Templeton Emerging Markets, Ross Teverson of Jupiter Emerging & Frontier Income Trust and Mario Solari of Genesis Emerging Markets Fund. It was well worth it and do read their views on the prospects for emerging markets.
Some of the countries they invest in are already emerging from lockdown and it was fascinating to hear how it’s going. Andrew Ness quoted his colleague, clearly a Star Trek fan who described post-lockdown as, “It’s life Jim but not as we know it.” Of course, it’s too early to be confident in the short-term but they believe the demographic situation, more middle-class consumers and attractive valuations are compelling over time. Do watch the video below where I talk to Andrew Ness and Ross Teverson if you’d like to explore these captivating countries.
Managers discuss how emerging markets are responding to COVID-19
Our investment guru Ian Cowie this month explores the income possibilities that emerging markets can provide. This area is often overlooked by income seekers but Ian explains that the average yield of the 14 companies in the Global Emerging Markets sector is 2.7% and over the last five years this has increased by 14.4% per year. He delves into his extensive portfolio which includes BlackRock Latin American, Henderson Far East Income and the already mentioned Jupiter Emerging & Frontier Income as well as JPMorgan Indian and Vietnam Enterprise Investments.
On a different topic, I don’t know about you, but since lockdown I seem to be spending much more money in supermarkets. A Sunday treat of a tub of ice cream has turned into three tubs, never mind my husband’s barbecue beers and my Mother’s Welsh cake habit. I’m not alone in my new-found love for supermarkets. James de Uphaugh, Edinburgh Investment Trust, argues that supermarkets are “arguably one of the most essential industries.” Find out what investment company managers think about their investments in Ocado, Tesco, Sainsbury’s and Morrisons.
Another highlight of lockdown life is the Friday night takeaway and so far we have enjoyed numerous curries and a Chinese. We have taken a look at the world of takeaway food and recipe box businesses so we have found out which companies Scottish Mortgage, Allianz Technology and BMO UK High Income Trust have invested in and why.
Finally, I’d recommend this informative weekly investment company podcast from the highly experienced journalist, Jonathan Davis and Simon Elliott, head of investment trust research at Winterflood Securities. It’s great listening for fans of the sector and free to sign up for here.
Stay safe and enjoy the VE weekend!
Annabel Brodie-Smith Communications Director, AIC
