TIME TO RE-VISIT EMERGING MARKETS?
Overlooking Singapore’s bustling central business district, the Tower Club played host to Lombard Odier’s Exclusive Breakfast Roundtable with Didier Rabattu, Head of Global Equities for Lombard Odier Investment Managers, on June 26.
After a warm welcome by Vincent Magnenat, CEO of Lombard Odier Singapore and Head of Private Banking for Asia Pacific, 20 guests enjoyed a light breakfast as Mr Rabattu shared his views on recent developments in emerging markets and their respective outlooks, with a particular focus on the consumer and retail sectors.
As Head of Global Equities for Lombard Odier Investment Managers (IM) and manager of its emerging consumer expertise, Mr Rabattu’s experience in the consumer and retail sector spans over two decades.
His insight into consumer needs and behaviour, and its impact on companies in emerging markets has boosted Lombard Odier IM’s emerging consumer business, which has raised more than USD 750 million since its launch in 2011.
Emerging markets have been one of the biggest beneficiaries of excess liquidity in today’s markets. However, the threat of quantitative easing tapering in the US, and a slowdown in growth in the Brazil, Russia, India and China (BRIC) economies has resulted in an underperformance relative to developed markets.
Although forecasts are looking gloomy in the short term, Mr Rabattu highlighted that investors cannot afford to ignore the structural growth of the emerging market consumer in the long run.
“Whilst the asset class (emerging in the markets equities) as a whole has experienced a challenging period recently, we believe there are still many attractive opportunities with long-term potential for active investors.” said Mr Rabattu.
“We expect that the combination of a depressed oil price and falling interest rates will reduce inflation rates by 2-3% in Asia and offset 2013’s devaluation and imported inflation. We believe that this is a net positive for the retail discretionary sector and fully endorses our conviction in the region,” he added.
After an insightful question and answer session, Mr Rabattu concluded “In the current environment, we think a focus on quality companies remains essential in emerging markets, with the consumer a key theme for investing for the year ahead.”