emerging & frontier markets

Emerging and frontier markets represent the fastest growing countries in the world. We believe the continued growth in these markets presents opportunities across a range of industries. Our index agnostic, opportunistic approach has been honed for over two decades, and the depth of experience garnered within our team allows us to participate in different opportunities that are usually off the beaten track.

The economic development of emerging markets: a well-trodden path

1

STAGE 1
Economies in an early stage of development tend to rely on agriculture.

1a

STAGE 1
Economies in an early stage of development tend to rely on agriculture.

2

STAGE 2
As an economy maximises its output from agriculture, the overall result is a productive surplus that primes demand for goods and services.

2a

STAGE 2
As an economy maximises its output from agriculture, the overall result is a productive surplus that primes demand for goods and services.

3

STAGE 3
This incites a drive towards manufacturing. Urbanisation takes place as workers migrate to focus on factory work.

3a

STAGE 3
This incites a drive towards manufacturing. Urbanisation takes place as workers migrate to focus on factory work.

4

STAGE 4
Cheap labour and attractive prices for manufactured goods incites the interest of other economies. As an economy’s export base grows, disposable incomes rise.

4a

STAGE 4
Cheap labour and attractive prices for manufactured goods incites the interest of other economies. As an economy’s export base grows, disposable incomes rise.

5

STAGE 5
Technological upgrading streamlines manufacturing, resulting in increased imports laying the foundation for industrialisation.

5a

STAGE 5
Technological upgrading streamlines manufacturing, resulting in increased imports laying the foundation for industrialisation.

6

STAGE 6
Financing and credit is needed for this process to happen and financial inclusion is a constant theme during this process.

6a

STAGE 6
Financing and credit is needed for this process to happen and financial inclusion is a constant theme during this process.

7

STAGE 7
As disposable incomes rise, demand for property and white goods rise.

7a

STAGE 7
As disposable incomes rise, demand for property and white goods rise.

RWC does not accept any liability (whether direct or indirect) arising from the reliance on or other use of the information contained in it. No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment. No person may distribute, copy or publish this document or any of its contents, in whole or in part, for any purpose, without the express, prior written permission of RWC Partners Limited.

The economic development of emerging markets: a well-trodden path

STAGE 1

Economies in an early stage of development tend to rely on agriculture.

STAGE 2

As an economy maximises its output from agriculture, the overall result is a productive surplus that primes demand for goods and services.

STAGE 3

This incites a drive towards manufacturing. Urbanisation takes place as workers migrate to focus on factory work.

STAGE 4

Cheap labour and attractive prices for manufactured goods incites the interest of other economies. As an economy’s export base grows, disposable incomes rise.

STAGE 5

Technological upgrading streamlines manufacturing, resulting in increased imports laying the foundation for industrialisation.

STAGE 6

Financing and credit is needed for this process to happen and financial inclusion is a constant theme during this process.

STAGE 7

As disposable incomes rise, demand for property and white goods rise exponentially.

Disclaimer??????

emerging markets at rwc partners

Experienced team. A 19-strong team, some of whom have worked together for over two decades, prioritising face-to-face research to inform idea generation. This provides on-the-ground knowledge and ability to seek out a wide range of opportunities across the emerging and frontier markets spectrum.  

Finding untapped opportunities. To identify the highest return potential the team pursues an idea-focussed rather than an index-driven approach. Top-down macro research helps to inform the growth drivers and trends in a country or sector, providing the investible universe which can reveal opportunities not broadly followed.

Primary analysis. Key to the approach is identifying opportunities away from the herd. Rather than defining the strategies by geographic allocations, the team concentrates research on companies exhibiting strong growth characteristics at reasonable valuations with good liquidity.

High conviction approach results in concentrated portfolios. With exposure to a range of differentiated ideas, the team’s extensive experience has been developed across most market cycles, often as pioneer investors in markets before inclusion in any indices. Its high conviction approach results in concentrated portfolios positioned for a range of possible medium to long-term outcomes.

TEAM

John M. Malloy, Jr

John joined RWC in March 2015 from Everest Capital to co-manage the Emerging and Frontier Markets team with James. He has 23 years of experience in global investment management, commodity, debt and equity research analysis. Before joining RWC, John spent 18 years at Everest Capital where he focused on emerging markets investing.

Prior to this he was a high yield manager at Barings focusing on Latin America and US markets. John holds a BS in Management from Norwich University, an MBA from Boston University and speaks Spanish.

James Johnstone

James joined RWC in March 2015 from Everest Capital to co-manage the Emerging and Frontier Markets team with John. He has 19 years of investment management experience.

Before joining RWC, James was most recently responsible for frontier markets analysis and portfolio management at Everest Capital. He was also formerly co-founder and CIO of a multi-strategy Asian hedge fund and analyst at Gartmore and Schroders before that, where he focussed on emerging market equities. James holds an MA (Hons) in Classics and Modern Languages, Christ Church, Oxford University and speaks Russian.

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