Ariel Investments launch EM offerings in Australia
Ariel Investments has announced the launch of two new portfolios to offer Australian institutional investors exposure to emerging market companies with long-term earnings power at attractive valuations.
Its first dedicated EM offerings in Australia, the Ariel Emerging Markets Value and Ariel Emerging Markets Value ex-China portfolios would “seek to capitalise on short-term market inefficiencies to drive long-term returns,” it said.
It would be led by Henry Mallari-D’Auria, chief investment officer of emerging markets value equities at Ariel Investments.
“We’re excited to bring our Emerging Markets Value portfolios to Australia,” said Ian Webber, senior vice president, institutional marketing, head of Asia Pacific & MENA.
“The launch of these portfolios will offer Australian institutions an opportunity to access the expertise of Ariel’s Emerging Markets Value Team, who have a proven ability to identify compelling opportunities to capitalise on valuation dislocations.
“This skill can only be gained after years of experience successfully investing in some of the globe’s most inefficient markets, and it’s a capability we’re proud to be able to offer to Australian institutions.”
According to Ariel Investments, following a period of underexposure to the asset class, global investors were considering a return to emerging market equities due to their opportunities to realise meaningful returns.
In April, the International Monetary Fund (IMF) forecast developed markets’ growth to fall from approximately 2.7 per cent in 2022 to 1.3 per cent in 2023. However, EMs were riding an upwards trend, with growth increasing from 3.9 per cent in 2022 to 4 per cent this year, as well as projections of 4.2 per cent in 2024.
The difference in growth between developed and emerging markets was expected to widen in favour of EMs for the first time in almost a decade.