leadf
logo-loader
viewAPQ Global

Emerging markets investor APQ Global has a very simple objective and the experience to achieve it

APQ announced today it is currently considering a further capital raise - read here about why you should consider investing in the investment group

Investing growth
APQ's objective is to pay a fully covered dividend yielding 6% while ensuring its book value grows by between 5%-10% each year

Bart Turtelboom is a veteran of emerging markets investment.

In two and a half decades he has been there, seen it, done it, and bought the t-shirt in senior roles at GLG, Morgan Stanley and Deutsche Bank.

This breadth of experience means the former International Monetary Fund economist has watched economies such as China, Russia, Brazil, and South Africa both prosper and then periodically stumble.

WATCH: 'Thing are looking very promising for the next 6-9 months' says APQ's Bart Turtelboom

His latest venture is APQ Global Limited (LON:APQ), an AIM and Channel Islands-listed emerging markets investment company that draws on his expertise and that of the team he has gathered around him.

Based in Guernsey, APQ has already invested around US$100mln and has a very decent institutional share register.

Its objective is very simple – pay a fully covered dividend yielding 6% while ensuring APQ’s book value grows by between 5%-10% each year.

The company invests globally – so that means Asia, Latin America, the former Soviet Union and Eastern Europe - and invests in equities, currencies, credit instruments and government bonds.

Occasionally it will take strategic stakes in businesses where it becomes a supportive shareholder in for a journey of three to five years. It might even take control of a company and insert its own management.

In other words APQ is anything but a passive investor.

READ: APQ Global says currently considering a further capital raise

Regionally, it is diversified. “That’s important in emerging markets,” says Turtelboom.

Its biggest exposures are Brazil, Russia and its experts like the financial services and natural resources sectors.

The latter, after being clobbered for a number of years, rebounded markedly in 2016 and APQ benefited from this.

If Turtelboom and his team have a firm idea of what they like and don’t like (and act accordingly) they aren’t traders looking to make a small turn on a series of investments.

They are holders for six to 18 month, depending on the outlook for the country or the particular investment.

The flexibility comes in their not tracking a particular index – so funds can be deployed and positions doubled up where sentiment and fundamentals are favourable.

In Brazil, the APQ team has spotted what it thinks is a fantastic opportunity in the form of the inflation-linked government bond.“It is one of the best risk-rewards in emerging markets today,” says Turtelboom. “It will deliver significant capital gains over the next two to three years.”

He added: “Our view on emerging markets in general is benign. It is one of the few asset classes when you look around the world that offers both value, income and the potential for capital growth.”

WATCH: APQ Global focusing on the 'tremendous opportunity' in emerging markets

But what about volatility?

The world’s up and coming economies are prone to periodic crises.

Flexibility is the key and that point mentioned early about not being hemmed in by tracking a particular regional index, which requires arbitrary exposure and weightings towards certain countries and asset classes.

Turtelboom  said: “That means we don’t have to be in Indonesia, we don’t need to be in Vietnam or Argentina if we don’t want to.

“We really target the investments we are making towards the twin objectives of meeting the cover of the dividend, which we are very comfortably doing, and book value growth.

He concluded: “What also mitigates volatility is our multi-asset class nature. We can really deploy the capital where we see the biggest risk-reward, rather than being forced into one position or the other.”

Quick facts: APQ Global

Price: 22.5 GBX

AIM:APQ
Market: AIM
Market Cap: £17.63 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of APQ Global named herein, including the promotion by the Company of APQ Global in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

APQ Global cuts dividend and scales back management incentive plan as it...

APQ Global's (LON:APQ) Bart Turtelboom tells Proactive London's Andrew Scott it's been ''the most challenging environment of my career by a mile.''. ''We went through an episode where overnight 20% of global GDP stopped with a truly unique impact on markets ...  especially emerging...

on 6/4/20

3 min read