Insights

<p>US newspapers referred to it as the “year without a winter” with record breaking heat and snowless months across the Midwest. Elsewhere, the consequences were severe. In Brazil they called it the Great Drought and in China the Incredible Famine. </p>

<p>This is our second investor study, drawing on the views of 250 investment decision-makers across 22 countries, collectively representing US$20.9 trillion of AUM across every major geography and institution type. More investors plan to increase their EM allocation over the next two years than any other region and the expected return premium over developed markets is material. While current EM allocations remain small, the barriers to that increasing are largely down to perception.</p>

<p>The commodity cycle of the 2000s was spurred by demand from China as it spent trillions to become the world’s factory floor. However, higher input prices were dampened by increased growth rates, more trade and an influx of cheap goods. </p>

<p>An 1,840-mile pipeline from Texas to New York began delivering natural gas to NYC in 1951 “from the region of the world’s greatest natural gas reserves to the world’s richest market”. Transco replaced the coal burned to produce toxic low-heat gas with a high energy odourless energy source enhancing lives across the city and helping eliminate the blue haze across the city.</p>