Not just cricket: Why our emerging markets experts like India

India may have fallen short in the Cricket World Cup this month, but it’s been on a winning run since hosting its previous world cup in 2011.

Since then the country has changed massively, becoming a more attractive location for emerging markets investors, says Paul Wimborne, who co-manages EM investing at Pendal.

“The most significant changes have been in internet connectivity and digital infrastructure.”

The nation’s Digital India program, launched in 2015, has digitised government services and built national internet infrastructure.

The project is now a blueprint for developing nations, Wimborne says.

“India has always had a strong services export economy based on software and services. This is going to kick things along even further.

“We are going to see huge changes in things like healthcare and digital commerce. Small-to-medium enterprises will have much greater ability to sell online.

“India is going to become an even bigger powerhouse.”

What we learned from OpenAI’s failed coup: don’t bet against capitalism

The failed coup at artificial intelligence leader OpenAI suggests investors are better off ignoring ideology and instead relying on tested market principles such as profit and self-interest.

That’s a lesson investors can take away from the astonishing episode, says Samir Mehta, who manages Pendal’s Asian equities strategy.

The ouster of CEO Sam Altman was engineered by OpenAI board members who reportedly feared that his plans for unbridled development of AI technology posed a threat to humanity.

Altman was later reinstated with the backing of major shareholder Microsoft – and the dissenting board members were replaced.

“It reminded me of when Xi Jinping came down on Chinese companies like Ant Financial and Alibaba’s founder Jack Ma,” says Mehta.

And yet capitalism continues unabated in China, points out Samir. Fast-growing Chinese fast-fashion retailers Shein and Temu are a case in point.

“Chinese and American ideologies are ostensibly diametrically opposite, but when it boils down to business there is very little difference between the two.”