Citywire Selector Podcast

In the first episode of Boutique Builders, we heard about what it means to be asked to take on a project and develop an idea, but what if you are the person driving that change. Where do you start? What do you do? And, perhaps crucially, what do you not do?   This week, Krystle Higgins speaks to Cesar Fernandez, who has swapped life as a Citywire AAA-rated emerging market debt manager at Julius Baer to develop his own idea – Alpha Credit Advisors. Fernandez talks about working away from the institutionalised thinking of asset manager, why it is important to learn how to lose and what previous experience running big projects on his own has taught him.

The future of asset management is one paved with consolidation. That’s if the PwC report is to be believed which forecasts one in six companies won’t exist by 2027.   So, what chance to smaller players have in this increasingly competitive landscape and what lessons could they learn from those that opted to go it alone?   In this new series, Boutique Builders, Citywire Selector has spoken to CEOs, founders and other architects of independent investment firms to understand what personally drove them to follow this path and what triumphs and tribulations they faced upon the way.   The first of this six-part series features Matthew Lamb, who was named chief executive officer of Pacific Asset Management in 2016 when the group accelerated efforts to turn a family-backed venture into a viable alternative to the ‘industrialised’ companies currently offering funds.

Columbia Threadneedle's head of responsible EM equities, Gokce Bulut joins Citywire’s Krystle Higgins to discuss the evolution of responsible investing over the past decade. As well as how he builds a balanced portfolio of performing companies, while considering the environmental and societal issues which could impact them. Bulut also shared his views on how SFDR labelling must change, as well as why fund managers should not shoulder the responsibility of labelling funds.

Keeping on top of the turbulent and complex political environment in LatAm and broader emerging markets is no mean feat.   One person with a continual eye on this part of the world is Thierry Larose, a Citywire AAA-rated emerging markets debt PM at Vontobel.     In the second of a two-part EMD in Focus series, he dropped in to speak to Citywire Selector news editor Ian Heath about managing political risk in South America, including the impact of the election of left-wing Luiz Inácio Lula da Silva (Lula) as Brazil’s president and the emergence of libertarian political outsider Javier Milei in Argentina.

Managing a host of local and hard currency emerging market debt funds for PGIM means Citywire A-rated Cathy Hepworth has plenty to think about.   In the first of a two-part EMD in Focus series, she dialled in from New Jersey to speak to Citywire Selector news editor Ian Heath about a range of topics in her specialist space, including why PGIM has recently moved into riskier EMD assets and which troubled countries/sectors she thinks are attractive or best avoided.

The hunt for investment grade emerging market debt will tie investors’ fortunes in very closely with the Federal Reserve and mean this miss out on meaningful returns in the final months of the year.   That is the view of Raphael Kassin, who returned to the EM Insider hotseat to share his views on the current market conditions and where he thinks it makes sense to allocate given the current macroeconomic backdrop.   The Brazil-based bond buyer outline lists some of the markets that those with a sterner stomach may consider allocating to if they want to break away from the pack. Kassin also touched upon how the overarching approach to EMD has changed in a short space of time.   ‘In the old days, asset allocators would just say: “I want to put 5% in EM, because I think it’s looking like it will give me another 5% return this year, based on spreads and treasuries. That was a nice idea; but these days, it is a little bit more complex.’

The former governor of the Bank of England shares his views on inflation, independent economic thought, and the case for a genuine salary cap in soccer.   ‘A big reform is easier to implement than a sequence of small steps’. Mervyn King sat down with Citywire Selector to talk about the current state of economics, as well as his thoughts on the Bank of England’s failure to spot a crucial misstep in its attempt to curtail post-pandemic inflation.   Having earmarked this as an ‘intellectual mistake’, King outlines two ways in which the BoE – and any central bank – can change course, which he said entails accepting now is not the time to tighten.   Also in this interview, he was asked whether markets have become increasingly short-term and how he, as a former governor, would respond to such scrutiny. Here he offers an example of how former ECB president Jean-Claude Trichet used to know when to add the word ‘extra’ to a statement to prompt a very different kind of response from markets and media commentators

Artificial intelligence is undoubtedly one of the hottest topics for investors in 2023. But is this type of excitement over a revolutionary technology anything new?   Mike Coop, Morningstar’s CIO for Europe, Middle East and Africa, dropped into our studios to discuss this with Citywire Selector news editor Ian Heath. They talked about the history of game-changing ‘general purpose’ technologies, how AI-driven innovations might pan out and whether there are parallels with the dotcom bubble.

GIB Asset Management’s Kunal Desai joins Citywire Selector’s Krystle Higgins to discuss how after years of disappointing returns, and ‘balance sheet heartbreak’, India's moment has finally arrived, as well as his thoughts on the BJP’s internet shutdowns at a time when the country is experiencing a digital revolution.

Jacques-Aurélien Marcireau discusses how ‘super-aggressive’ marketing tactics, aped from the former US president, are permeating the corporate world and why this is muddying the waters for investors, including in the artificial intelligence space.   Marcireau, who is co-head of equities at Edmond de Rothschild Asset Management and manages its Big Data fund, also discussed which companies he thinks will be the winners as AI gains momentum and how tech companies might fare in the tougher macro environment.

Hakan Kaya, who runs the Neuberger Berman Commodities Fund, said earlier this year the demand on resources created by the green energy transition could drive a boom in commodity costs that could see prices of key minerals like copper increase eightfold.    He sat down with Selector news editor Ian Heath to discuss the emerging commodities super-cycle, which minerals are likely to be needed most for the energy transition and how investors should play the trend.

Guiness Global Investors’ Sharukh Malik spoke to Selector news editor Ian Heath about how he gets the inside story on the world’s second largest economy, including by learning Mandarin and following Chinese social media, which the Asia-focussed PM said is not as restricted as you might think.    Other topics discussed included whether China can re-stimulate its sluggish economy, the condition of its troubled property market and how China’s economy will continue to mature. 

Citywire AAA-rated Kamil Dimmich explained to Selector’s news editor Ian Heath how he operates as a value investor in growth-dominated emerging markets and why his fund is 45% invested in Greater China. The Pacific North of South portfolio manager, who oversees investments in more than 30 emerging markets, also discussed how you can make money with ‘value traps’ and where his favourite hunting grounds for investment have been over the years.

Ninety One’s Werner Guy van Pittius joins Citywire Selector’s Krystle Higgins to discuss his top plays, China’s slow rebound, and the impact increasingly hawkish US policy has on emerging market flows.

LGIM’s Andrzej Pioch, John Roe and Francis Chua dropped into Citywire’s Vauxhall studios to talk about how their multi-index fund range can offer easy access to the diversification investors need at a time of heightened volatility.   The trio also discussed which assets they think are most appealing at this time of uncertainty and addressed an age-old question: which is better, active or passive investing?

PODCAST: GMO’s Tina Vandersteel and Carl Ross join Citywire Selector’s Krystle Higgins to discuss how emerging markets can leverage a banking crisis, and recession. As well as their outlook for local currencies, and the possibility of China’s struggling Belt and Road project driving countries into distressed debt.

LONDON: In the latest episode of EM Insider, Raphael Kassin explains why he feels optimistic about Nigeria as an investment opportunity despite concerns around how the presidential elections could impact its credit conditions.

Redwheel’s John Malloy and Citywire’s Krystle Higgins discuss how he managed 2022, and what lessons can be learned from what was an unprecedented year of volatility within the markets. ‘Our position on China lost us money this year, but we think Chinese equities are at an inflection point.’ In the latest episode of this series, outperforming EM equities portfolio manager, John Malloy, and Citywire Selector’s Krystle Higgins discuss how Malloy protected his portfolio throughout 2022. As well as his views on China’s role in EM equities. Along with what he views as some of the biggest risks and opportunities for the asset class next year, and why he does not believe China will invade Taiwan.

FOMO fears. ESG anguish. Turning musicology into automation-led investing. These are just three of the many topics our various podcasts touched upon this year. In this look back, you can hear how heavyweights such as Jeremy Grantham have shaped their strategies, as well as what the emerging world has done to combat inflation. This is The Selection Show: A Year in Review.

Ninety One’s Juliana Hansveden and Citywire’s Krystle Higgins discuss navigating negative externalities and ESG issues within sustainable EM investing. ‘Sustainability within EM means identifying growth opportunities and the risks attached.’ In the latest episode of this series, EM sustainable equities portfolio manager, Juliana Hansveden, and Citywire Selector’s Krystle Higgins discuss how Hansveden dealt with the volatility within EM markets in 2022. As well as her views on human rights issues and ESG within an EM context. Along with how to decide between engaging and divesting from a company with negative externalities such as forced labour or a poor environmental record.