Investing in an Emerging World Order. Part 3

In the final part of our series on global supply chains, portfolio managers Inbok Song and Sherwood Zhang look at the companies that are reconfiguring their networks and portfolio manager Vivek Tanneeru gives his assessment on the investment opportunities.

Key Takeaways

  • Companies are overhauling their supply chains in a number of ways and for different reasons in both high-value and low-value markets.
  • Certain opportunities are fairly apparent, others are more nuanced. There will be pockets of value created from clusters of relocations in the short term while longer-term plays will occur from more structural shifts.
  • Some businesses will be more successful than others in staying on top of their networks. The key for investors is having an open view as companies’ operations increasingly straddle frontier, developed and emerging markets.

In the final part of our series, we focus on the industries where we are seeing signs that production is shifting and how some companies are positioning themselves to capitalize effectively. We explore the arc of opportunities it provides and how investors can capitalize on these near- and longer-term shifts. Interestingly, some China-based companies are also relocating production processes and may provide attractive investing opportunities.