While getting China right is critical to performance in any EM portfolio, it is not the only opportunity.
India has been particularly rewarding. Although our exposure has been reduced, a recent trip to Puna and Mumbai confirmed our confidence in the huge long-term potential of the country.
We are positive on selected property stocks and electric vehicle plays, among others.
Thailand’s tourism sector has been decimated by Covid but there are signs this is now reversing.
A subset of the travel sector, medical tourism, is burgeoning.
Indonesia has the rewarding combination of a large and young population of consumers.
We anticipate growth will exceed expectations and have positions in a consumer finance bank and ecommerce.
Vietnam is an economy that has proved resilient throughout the past few years of turmoil.
We hold a leading retailer with an attractive valuation and a long runway of growth ahead.
Outside of Asia we have a longstanding holding in a Polish supermarket and have recently acquired a Mexican airport company.
There are certainly differences between the GFC and the current headwinds facing global markets.
Some might even argue that the threat to global capitalism was more existential in 2008 than those that face us today.
Be that as it may, our experience of various crises over the past 30 years, though painful at the time, can present great opportunities if you can pick the right stocks.
Mark Martyrossian is a director at Aubrey Capital Management
