MILLTRUST INTERNATIONAL
 

Milltrust Alert – Selected News and Insights from the Emerging Markets and Around our Business

May 17, 2019

BY Milltrust International Group

MILLTRUST EVENTS

INVITATION TO THE CLIMATE IMPACT ASIA FUND PRESENTATION IN LONDON

– For Professional Investors Only –

Join us at 11am on the 24th of May (London, West End) for an introductory presentation on the upcoming Climate Impact Asia Fund.

The presentation will feature Jeremy Higgs, Managing Director at Environmental Investment Services Asia Limited and investment manager to the Fund, and Gavin Edwards, on behalf of the World Wide Fund for Nature (WWF) in Hong Kong, the Environmental Consultant to the Fund.

Learn more

Register here

WHAT YOU NEED TO KNOW – EMERGING MARKETS

China Downplays Chances for Trade Talks While U.S. Plays ‘Little Tricks’

Chinese state media signaled that the country has little interest in resuming trade talks with the U.S. as long as authorities in Washington continue to threaten more tariffs. This means that the next opportunity for both sides to come together will be a meeting between Presidents Donald Trump and Xi Jinping at the G-20 summit towards the end of next month. The nation’s equity markets were hit after the media reports were published, with the Shanghai Composite Index tumbling as much as 2.8%, while the yuan briefly fell to its weakest level against the dollar since November.

Milltrust outlines its ETF use in emerging market investment

Milltrust International has close to half a billion US dollars invested in the emerging markets, and Eric Anderson Managing Partner at Milltrust International, Head of Emerging Market Investments and the Lead Portfolio Manager on all their Emerging Market strategies, explains that one third of this is used through the firm’s ETF strategy.

“We found that this low-cost, high-alpha strategy is appealing to more and more investors who are seeking a cost effective but differentiated way to gain exposure to the asset class,” Anderson says.

Stock of the Week

BYD Auto Co., Ltd. is the automotive subsidiary of the Chinese BYD Company (“Build Your Dreams” company), which is based in Xi’anShaanxi Province. It was founded in January 2003, following BYD Company’s acquisition of Tsinchuan Automobile Company in 2002. The company produces automobiles, buses, electric bicycles, forklifts, rechargeable batteries and trucks. The current model range of automobiles includes electric vehicles, plug-in hybrids and petrol-engined vehicles. The Denza brand, a joint venture with Daimler AG, produces luxury electric cars.

Why We Like BYD:

  • 2018 battery manufacturing capacity of 26GWh forecast to be 72GWh by 2020.
  • Major beneficiary of China’s Zero Emission Vehicle credits policy starting in 2019.
  • PE 2019E: 23.6x. Price target: HK$84.7.
  • Major Climate Impact: In 2018, 247,811 NEVs sold saving at least ~3 mn tons of CO2, ~60,000 tons of SOX, & ~16,000 tons of NOX emissions

Sources: BYD CSR Report 2018, ‘Vehicle-use intensity in China’ Huo, & EISAL Estimates

WHAT YOU NEED TO KNOW – SUSTAINABLE INVESTMENTS

A critical step to reduce climate change

By Bill Gates, Co-chair, Bill & Melinda Gates Foundation

Wind and solar power generation is expanding around the globe at record rates, allowing more people to get their electricity from clean, renewable sources than ever before. This is great news.

And here’s better news: We can do even more. By investing in energy innovations, we can build on the progress we’ve made deploying current technology like renewables, which will help accelerate the transition from fossil fuels to a future of reliable and affordable carbon-free electricity.

This would be an incredible achievement and the most important step we can take to prevent the worst impacts of global warming.

Here’s why: While electricity generation is the single biggest contributor to climate change—responsible for 25 percent of all greenhouse gas emissions and growing every day—it’s an even bigger part of the solution. With clean electricity, we can do more than light our homes and power our grid. We’ll unlock a source of carbon-free energy to help power the sectors of the economy that produce the other 75 percent of greenhouse gas emissions, including transportation, buildings, and manufacturing. Think electric cars and buses; emission-free heating and cooling systems in our homes and businesses; and energy-intensive factories using more clean power to make products.

So, what will it take to reach the goal of zero carbon electricity generation?

WHAT YOU NEED TO KNOW – AGRICULTURE INVESTMENTS

African swine fever in China will affect NZ dairy sector

China’s devastating outbreak of African swine fever will have a spill over effect on the dairy sector, a new report by Rabobank says.

China is the world’s largest pork producer and accounts for about 50 per cent of pork production globally.

The African swine fever epidemic was expected to reduce the country’s pork production by 25 per cent -35 per cent, resulting in increased demand for other animal proteins but lower demand for feedstuffs, the report said.

Rising demand for beef could constrain China’s milk production if dairy cow culling accelerated to fill some of the gap in animal protein demand.

WHAT YOU NEED TO KNOW – SCIENCE, TECHNOLOGY & INNOVATION

Electronic textiles could harvest energy as we move

Milltrust’s British Innovation Fund has invested into state-of-the-art RFID manufacturer Pragmatic. See how flexible RFID tags are the future of an interconnected world.

Wearable electronic components incorporated directly into fabrics have been developed by researchers at the University of Cambridge. The devices could be used for flexible circuits, healthcare monitoring, energy conversion, and other applications.

The Cambridge researchers, working in collaboration with colleagues at Jiangnan University in China, have shown how graphene – a two-dimensional form of carbon – and other related materials can be directly incorporated into fabrics to produce charge storage elements such as capacitors, paving the way to textile-based power supplies which are washable, flexible and comfortable to wear.