Our University student interns mull over a new strategy
Emerging markets are defined not by common economic characteristics but as an investment opportunity, according to Benoit Anne, head of emerging markets strategy at Société Générale (SG). When the term first came into being, most investors looked only at developed markets; emerging markets as a category for investment was a differentiator from previous investment strategies, he explains.
One important characteristic shared by most of the countries that have achieved emerging markets status over the past 30 years is the responsiveness of their governments—regardless of political creed—to demands from their populations. “People in emerging markets are poor and have no protection against inflation or economic instability,” says Jan Dehn, head of research at Ashmore Investment Management, which has $71.3 billion in funds under management. “They want improved living standards rather than ideology.”
Local political accountability has resulted in economic stability and growth. While there have been plenty of market panics since 1998, “the fundamental strength of emerging markets has not been undermined,” says Dehn.To ascertain whether emerging markets is an obsolete term, we must first understand what it means. Emerging markets were defined not by common economic characteristics but as an investment opportunity, according to Benoit Anne, head of emerging markets strategy at Société Générale (SG). When the term first came into being, most investors looked only at developed markets; emerging markets as a category for investment was a differentiator from previous investment strategies, he explains.
Emerging markets also had a shared history, having come of age as the Cold War ended (creating a political vacuum that spurred experimentation) and globalization accelerated. Globalization enabled emerging markets countries to import capital, technology and knowledge and to export what they produced, notes Neil Shearing, chief emerging markets economist at independent research firm Capital Economics.
(CHANGING ECONOMIC CLIMATE OF EMERGING MARKETS, Seeking A New Paradigm, Author: Laurence Neville
14 December 2014 Global Finance Magazine March 2015)
The philosophy behind the theory of ― socio-economic engineering, (SEE) is simple: making investments in long-term, sustainable, and conscientious ventures (in a sustainable and conscientious ways) in emerging markets or developing countries. This concept not only promotes socially responsible investment criteria, but it also promotes financial responsibility. An investment's productivity and profit-generating potential is not dictated solely by short-term profits. Investment criteria relating to the sustainability of an investment venture are not limited to portfolio management as the investment itself may have a longer and more productive lifespan. As we have attempted to promote this concept, particularly in the context of investments made in emerging markets,we have been surprised by how many sophisticated investment “gurus” ignore what the term “social” means.
Our "Socio-Economic Engineers" here at Bankstreet's Strategy "Den" come from an impressive range of backgrounds and education. Our staff’s diversity lets us find the best solution for making your ideas successful. We come from a variety of disciplines and career paths, ensuring that our approach considers all angles. Basically, whenever you have an investment idea for an Emerging market, we produce a strategy to make that idea work. We won’t rest until you’re completely satisfied.