Adam Kutas – Beyond emerging markets
As the portfolio manager for Fidelity Frontier Emerging Markets Fund, Adam Kutas frequently travels to distant locales in search of new investment opportunities. A core part of the Fidelity investment process is “kicking the tires” on companies by visiting management in their home countries and seeing the operations first-hand. As well, with emerging and frontier markets, having a deep understanding of a particular country’s economic and political environment is essential to fully comprehending the risk and rewards. This blog is intended to highlight this research process and help investors and advisors better understand the opportunities provided by exposure to frontier markets.
Any “frontier” left in frontier markets?
Adam argues that the recent upgrading of several countries from “frontier” to “emerging” is positive for frontier investors as it creates a more purely “frontier” index – and as a result, investors will have more exposure to the assets they seek.
Trade wars and collateral benefits
Adam discusses the “collateral benefits” of the trade war between the U.S. and China and how frontier markets should capture the lion’s share of the benefits.
Saudi Arabia and pending MSCI EM inclusion: the usual fade?
Adam discusses the pending inclusion of Saudi Arabia into the MSCI EM index.
China’s “gifts” to frontier
Adam discusses China’s “gifts” to frontier markets: communication, power and electric vehicles.
Adam gives his outlook for frontier emerging markets for 2019.
The three leapfrogs in frontier
Adam explains the concept of “leapfrogging”, which is how frontier countries "leapfrog" market structures that exist in developed markets and move straight to the most modern systems. It is most apparent in three sectors: telecom, banking and power.
Why Frontier Emerging, not just Frontier?
Adam explains why the index for the Fidelity Frontier Emerging Markets Fund is the MSCI Frontier Emerging Markets (FEM) Index and not the MSCI Frontier Markets (FM) Index.
Middle East - A timely rise in the index
Adam talks about how the emerging (EM) and frontier (FM) markets are becoming more important from an index perspective as the region is rising sharply in both the EM equity and bond indices. He discusses whether this will have an impact on stock performance.
Vietnam: Sitting in the trade-war catbird seat
Adam talks about how Vietnam is one of a few countries uniquely positioned to benefit from the trend towards moving manufacturing away from China to lower operating cost countries.
The mid-year update on frontier emerging markets
Adam provides a mid-year update on frontier emerging markets. Despite the markets “taking a breather” and facing some headwinds, the outlook for the rest of 2018 and 2019 is fairly robust for frontier equities.
Vietnam: Industrialization in an evolving economy
Adam Kutas gives an update from Vietnam, a country that is often referred to as the “new China”. It’s undergoing rapid industrialization, which is bringing investing opportunities for the Fund.
South Africa and its political shift: time to revisit Africa-focused companies?
Adam talks about investing opportunities in South Africa. With the recent political shift, Adam explores whether it is time to revisit African focused companies.
These stocks are micro caps, right?
Adam talks about a topic he is often asked about: the trading liquidity of the investments within the Fidelity Frontier Emerging Markets Fund.
Saudi Arabia – real reform or more of the same?
Adam talks about investing opportunities in Saudi Arabia, which although one of the most liquid in emerging and frontier markets, has historically been unavailable for global investors to invest in.
Morocco: the next Motor City?
Adam talks about the growing domestic auto production industry in Morocco, a North African country only 15 kilometres away from Europe that has a favourable trading relationship and historical linkages with the EU.
Solar Power: transformative to EM and FM countries?
Adam talks about the global rise of solar power and how EM and FM countries should experience a bigger benefit from solar given three key factors: geography, energy import reliance and cost of capital.
Hunting for frontier ideas in emerging markets – focus on the ‘Four neighbours’
Adam talks about why some EM-based companies growing aggressively in frontier markets, and explains the “Four neighbours” phenomenon.