Archive for September, 2011

Securities & Commodities Authority:
Touching Base with Regulators to Ensure Efficient Compliance 

Dr Ryan Lemand, a speaker at the marcus evans Middle East Investments Summit 2011, on the rapidly developing regulations in the GCC region. Interview with: Dr Ryan Lemand, Senior Economic Advisor – Head of Risk Management, Securities and Commodities Authority

FOR IMMEDIATE RELEASE
 
The Middle East investment sector is young but evolving quickly. This has created a massive increase in the number of new regulations being introduced to accompany the fast development of the financial markets, says Dr Ryan Lemand, Senior Economic Advisor – Head of Risk Management, Securities and Commodities Authority (SCA). Investors must communicate with regulators to be prepared for any upcoming policies.
 
A speaker at the marcus evans Middle East Investments Summit 2011 in Dubai, UAE, 23 – 24 November, Lemand discusses the importance of improving the current investment cycle in the Middle East.

What makes the Middle East an attractive region to invest in?

Dr Ryan Lemand: The Middle East region is very attractive to investors, particularly when considering the sovereign debt crisis in the developed markets, such as Europe and the US.

Financial markets in the GCC are only ten years old and regulations are developing rapidly. Consequently, there is a lack of tools readily available for investors, leading to long-only equity investments in the region. The SCA is now working on completing an investment cycle regulation in the UAE to standardise collective investment schemes and to allow short-selling.

Local investors will need a more complete regulatory framework to better diversify their portfolios in order to thrive in the Middle Eastern markets.

International investors will increasingly look at GCC equity as well as fixed income markets when building their portfolios. As GCC markets improve their efficiency, it is reasonable to have them occupy a bigger share in the international investors’ portfolios.

How can investors prepare for the new regulatory policies?

Dr Ryan Lemand: Regulations are frequently issued and prioritised based on investor needs, with investors often aware of new policies before they come into effect.

They must continue touching base with regulators and follow up on what is being worked on. This way the regulation can come out in line with their aspirations. Most regulators in the GCC adopt a consultation-based approach, with investors providing the regulators with feedback that will be incorporated in the discussions leading to the final regulatory decision.

How can the market provide retail investors with safe and reliable collective vehicles?

Dr Ryan Lemand: The sector must become a savings environment for retail investors rather than a speculative market.

Like many emerging markets, the GCC sector consists of predominantly retail investors as opposed to institutional investors which we often see in developed markets. The focus on retail is due to the lack of collective investment schemes in the sector. The market is young and some of the crucial regulations are being put in place. Collective investment vehicles would help protect retail investors by professionally managing their capital and allow them to save money on a regular basis, as well as allow capital seekers to list their shares in a stable environment.

How can investors reduce systemic risk?

Dr Ryan Lemand: Since 2008, Middle East portfolios have been too concentrated on long-equity with a focus on blue chip companies. With the uncertainty in the markets, equities only portfolios have begun to concentrate risks. This is not a viable diversified investment strategy.

Investors can reduce systemic risk by diversifying their portfolios through new investment tools and mutual funds.

And most importantly, thorough financial analysis should always be employed before any investment decision rather than relying on speculative decision making.

Any final comments?

Dr Ryan Lemand: Investors should reduce the share of speculative investments in their portfolios and rely mainly on fundamental and technical analysis for their investment decisions. Also, retails investors should view their financial market investments as a means of saving and investing money rather than speculating for quick capital gains.

Contact:
Stacey Melvin
Journalist
marcus evans, Summits Division
Tel: + 357 22 849 400
Email: press@marcusevanscy.com

About the Middle East Investments Summit 2011

This unique forum will take place at the Park Hyatt Dubai, UAE, 23 – 24 November 2011. Internationally acclaimed as the leading event for Middle East institutional investors, the Summit offers much more than any conference, seminar or trade show. This exclusive meeting will bring together esteemed thought leaders in institutional investing and market leading solution providers for a highly focused and interactive networking event. The Summit includes presentations on seizing attractive investment opportunities, gearing up for new regulatory regimes, and securing portfolio performance.

For more information please send an email to info@marcusevanscy.com or visit the event website at www.mei-summit.com

marcus evans group – investment sector portal

Complementing our summit format, the Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com

All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com

Kuwait China Investment Company:
Unearthing Investment Opportunities between the Middle East and Asia

Dr Alessandro Magnoli Bocchi, a speaker at the marcus evans Middle East Investments Summit 2011, on taking advantage of the opportunities that open up as the dust settles in the Middle East.  Interview with: Dr Alessandro Magnoli Bocchi, Chief Economist, Kuwait China Investment Company

FOR IMMEDIATE RELEASE

In the recovery period of the crisis, investors with cash will benefit greatly from the acquisition of distressed assets with strong growth prospects, says Dr Alessandro Magnoli Bocchi, Chief Economist, Kuwait China Investment Company. Middle East institutional investors must start paying attention to valuable investments with clear growth prospects in order to thrive in the coming years.  

A speaker at the upcoming marcus evans Middle East Investments Summit 2011 taking place in Dubai, UAE, 23 – 24 November, Magnoli Bocchi discusses the importance of currency management and how to enhance performance through distressed assets. 

What are some of the issues challenging institutional investors in the Middle East?

Dr Alessandro Magnoli Bocchi: At the moment there is no leverage and little growth in the markets, therefore investors are facing difficulties in finding profitable investments.

Institutional Investors in the Middle East have cash to spend, but they have trouble seeing the opportunities available due to the dust in the environment as a result of the crisis. Markets are currently being driven by the calendar. One day we are focusing on Greece, another day we are worrying about the US deficit. Until this dust settles, we will not see what is ahead of us.

If you take a look at who prospered in the US after the great depression, it was those who picked up distressed assets. Investors must take this into account and look out for valuable investments with a high growth prospect, to be acquired at a discount. These investors will be those who benefit when the crisis comes to an end.

Also, it is essential to start focussing on Asia: it is the new engine of global growth. The oil-rich Gulf and an “energy-hungry” Asia are intensifying their political relations and boosting their financial ties. Heads of state are paying each other visits and building mutual trust. The linkages between the Gulf, China and India are bound to deepen every day. This rapprochement makes strategic, political, economic, and financial sense. Over the 21st century, the Gulf’s substantial financial liquidity will be available to finance Asia’s high growth, and the region will achieve a stronger global position.

Is currency volatility still an issue in the region?

Dr Alessandro Magnoli Bocchi: To do business efficiently, you must have a predictable environment, hence a stable currency. Over the past two years, most currencies’ exchange-rates fluctuated at an unprecedented pace. This high volatility is due to two global policy responses to the 2008 crisis. First, borrowing is cheap. Investors chase scarce opportunities (including currencies), but – given the fragility of global growth – money is withdrawn as soon as risks rise. In other words, excess liquidity in a frail macroeconomic environment creates foreign-exchange volatility. Second, currency devaluation is an attractive alternative to cutting public spending. Today, the US, Europe and Japan – but also China, Brazil and Russia – would prefer a weak currency to fiscal consolidation. Alas, it cannot be done simultaneously by all. If everybody exports, who imports? Somebody has to buy.

The Gulf region’s exchange rates are pegged – either directly of via a currency board – to the US dollar and fiscal policies are fuelled by oil proceeds. So far, these arrangements have served the GCC well. The dollar peg ensured predictability in the monetary value of oil exports revenues. Fiscal spending, backed by saved petroleum earnings, promoted employment and equity. In recent years, growth has been spectacular, driven by a double boom – in oil and natural gas revenues and in the real estate and investment sectors. The GCC economy has tripled in size between 2002, when it was as big as Poland is today – and 2009, when, with a nominal GDP of USD 1.2 billion, it almost reached the size of Canada.

But, going forward, can this “recipe” work as well? The world is changing fast. The recent crisis has hit the “West” very hard. The Gulf needs investments and man-power. Its fast-growing population (from 28 to 39 million between 1998 and 2008) is one of the youngest and highest spending in the world. All GCC countries are now members of the WTO, with a string of free trade agreements expected over the coming years. At the same time, China has become the world’s leading exporter, and a voracious importer of oil and other natural resources. India is on the rise.

Currently, the Gulf’s monetary and fiscal policies are struggling to achieve price stability and sustainable growth. Rising inflation and differing economic cycles from the US have raised questions about the dollar peg. In 2007, a pegged exchange rate forced the GCC central banks to follow US interest rates, de facto decreasing financing costs during a boom. Also, fiscal policy has been expansionary when oil prices are high, rather than when the business cycle is in a contraction.

Finally, when panic hits the market, investors go to the dollar. As a result, we have seen the dollar depreciate and appreciate time after time. Because of the peg, the Gulf currencies need to follow and adjust.

When will investments in the Middle East flourish? 

Dr Alessandro Magnoli Bocchi: There is no way back, in MENA the genie is out of the bottle. The region’s shortcomings have been irrevocably exposed by the global crisis. Bold reforms are now impossible to postpone, if the region is to avoid years of stagnation and violence. Transitioning to democracy requires courage and concessions. The opportunity is unique, and must be seized: the future can be bright.

The world has seen this before. When unemployment and headline inflation rates worsen simultaneously, people lose patience. In the 90s, similar political unrest swept through Eastern Europe, the Soviet Union and Asia. Food shortages were a big catalyst in Romania’s 1989 ousting of Ceausescu and the 1991 Soviet revolution. In 1998, Indonesia’s Suharto was toppled as the Asian financial crisis led to rising food prices.

However, when regime change was not accompanied by meaningful reforms, years of low growth and significant financial and political instability ensued. The unattainable demands of various economic groups led to higher public spending, larger budget deficits, and lower tax revenues. Rising debt levels led to defaults or – when money was printed – spiralling inflation. Sovereign spreads rose, capital outflows accelerated, and currencies depreciated. The economic transition in Romania, Russia, and Indonesia (but also in Turkey and Pakistan) entailed high inflation, falling real incomes, and recession. Economic recovery and political compromise were possible only with fiscal discipline and structural reforms.

Still, in today’s world, there is hardly a region with more potential than the Middle East and North Africa (MENA). It has everything to succeed. First, a splendid past, with one of the richest cultural heritages in history. Second, a resourceful present, as it sits on top of large shares – 60 per cent of oil, 45 of natural gas – of the world’s proven reserves of fossil fuel, and controls over USD 1.6 trillion in assets, more than a third of global sovereign wealth. Third, it is set for a bright future: MENA’s population – 300 million citizens – is younger and larger than those of the EU and US.

What advice would you give investors?

Dr Alessandro Magnoli Bocchi: While market volatility persists, capital preservation is a priority. Given high downside risks and a fragile upside, cash is king. Global investors are indeed parking record amounts in money-market funds. Still, real interest rates are negative in most countries. While a recession could create short-term deflationary pressures (because of unused capacity in good and labour markets), in the medium-term inflation is likely to make holding cash costly. Also, in an inflationary environment, borrowers will enjoy a reduction of the real value of their nominal liabilities. Distressed opportunities are likely to surface in private equity secondary market. Getting in debt to pick up assets at fire-sale prices sounds like a good idea. Safe-haven currencies will be preferred, but investors need to watch – and manage – the high foreign-exchange volatility inherent to a highly liquid post-crisis environment.

Once the crisis-induced dust settles, public market performance – now driven by news and events – will return to rely on fundamental analysis and valuations. Diverging economic performances and falling correlations are likely. In other words, future financial flows will acknowledge the structural challenges of developed economies and gradually shift their focus to emerging markets, enhancing today’s timid signs of decoupling (still more significant than in 2008).

In short: be ready to take advantage of opportunities that will soon arise. If you have cash you will have access to distressed assets and will benefit immensely when the economy recovers. Be optimistic. This is a great period that we have in front of us.

Contact:
Stacey Melvin
Journalist
marcus evans, Summits Division
Tel: + 357 22 849 400
Email: press@marcusevanscy.com

About the Middle East Investments Summit 2011

This unique forum will take place at the Park Hyatt Dubai, UAE, 23 – 24 November 2011. Internationally acclaimed as the leading event for Middle East institutional investors, the Summit offers much more than any conference, seminar or trade show. This exclusive meeting will bring together esteemed thought leaders in institutional investing and market leading solution providers for a highly focused and interactive networking event. The Summit includes presentations on seizing attractive investment opportunities, gearing up for new regulatory regimes, and securing portfolio performance.

For more information please send an email to info@marcusevanscy.com or visit the event website at www.mei-summit.com 

marcus evans group – investment sector portal

Complementing our summit format, the Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com

All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com

VietNam Holding Asset Management Ltd.:
Penetrating the Vietnamese Market

Juerg Vontobel of VietNam Holding Asset Management Ltd., a sponsor company at the upcoming marcus evans Elite Summit 2011, on the opportunities available for foreign investors in the Vietnamese market.  Interview with: Juerg Vontobel, Founder, VietNam Holding Asset Management Ltd.

FOR IMMEDIATE RELEASE

Consistent out-performance of the market requires a dynamic asset allocation process which in turn must be based on a thorough understanding of the key drivers in the economy and stock market, says Juerg Vontobel, Founder, VietNam Holding Asset Management Ltd. This has resulted in a portfolio with an emphasis on agriculture and domestic consumption investment themes. Holding’s objective is to generate high risk-adjusted returns by combining rigorous financial analysis with interactive sustainability research.

From a sponsor company at the marcus evans Elite Summit 2011, in Montreux, Switzerland, 21 – 23 November, Vontobel discusses the importance of having a disciplined approach when investing in an uncertain market such as Vietnam.

What is unique about your approach to asset management?

Juerg Vontobel: When VietNam Holding was launched five years ago, we reviewed the global mega trends as well as the domestic growth drivers to build a portfolio through a dynamic asset allocation process. This resulted in a strong portfolio focus on agriculture and domestic consumption as our two main investment themes. As a value investor, we searched for undervalued companies, with the objective to hold them as long as the fundamentals are intact. As a result, 80 per cent of our portfolio was sourced in the over-the-counter market.

Engagement with our portfolio companies on corporate governance issues was important from the outset as 80 per cent of the listed companies are former state owned enterprises. Once we saw our efforts rewarded with tangible results, we expanded out scope by fully incorporating the UN’s Principles for Responsible Investments

What impact did your Environmental, Social and Governance (ESG) approach have on your investment performance?

Juerg Vontobel: Companies with a higher level of environmental and social awareness tend to be better managed, which typically translates into good economic performance. That is how we discovered that ESG principles match very well with our value approach. 

What are the opportunities in the equity market right now?

Juerg Vontobel: Over the past 20 years, Vietnam has produced the second highest economic growth record after China. However, its stock market has been underperforming for many years. Investors have been spooked by see-sawing inflation rates caused by inconsistent monetary policies. After much criticism from the domestic parliament, the government revised its economic policy for the next five years from growth for the sake of growth to a focus on sustainable growth and the reduction of inflation rates. This has brought renewed confidence to domestic investors.

Foreign investors have largely been absent from Vietnam for the past five years. Now is a good time to start looking again. The valuation of the Vietnamese stock market is over 30 per cent lower than those of all of its Asian peers and the corporate earnings growth continues to be well above 20 per cent p.a. Our own portfolio P/E is 20 per cent below the market’s and our investee companies have produced an earnings-per-share growth rate of almost 30 per cent during the first half of the year.

How do you identify which assets are likely to perform well?

Juerg Vontobel: Traditional quantitative methods help us to identify companies which outperform their industry. Our subsequent 360 degree review then combines our ESG assessment with our asset allocation discipline. This has enabled us to build a portfolio which is well positioned to continue to produce excellent results for our investors.   

Contact:
Stacey Melvin
Journalist
marcus evans, Summits Division
Tel: + 357 22 849 400
Email: press@marcusevanscy.com

About the Elite Summit 2011

This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 21 – 23 November 2011. Offering much more than any conference, seminar or trade show, this exclusive meeting will bring together esteemed thought leaders in institutional investing and market leading solution providers for a highly focused and interactive networking event. The summit addresses the ongoing evolution of alternative investing trends and provides attendees with fresh perspectives on adapting active management methods for a profitable investment portfolio despite market uncertainty.

For more information please send an email to info@marcusevanscy.com or visit the event website at www.elitesummit.com 

marcus evans group – investment sector portal

Complementing our summit format, the Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!

About VietNam Holding Asset Management Ltd.

VietNam Holding Ltd. (VNH) aims at long-term capital appreciation from well selected investments in Vietnamese equities. Financial analysis and portfolio development consider sustainability issues and opportunities for positive engagement. The fund is an attractive investment opportunity to participate in Vietnam’s remarkable growth and strong future prospects.

www.vnham.com

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com

All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com

Practicing Behavioural Finance in Private Wealth Management

Greg B. Davies, a speaker at the upcoming marcus evans Elite Summit 2011, on integrating behavioural finance into the family office setting. Interview with: Greg B. Davies, Lecturer, Executive Education – Behavioural Finance, Said Business School, Oxford University & Head of Behavioural & Quantitative Finance, Barclays Wealth

FOR IMMEDIATE RELEASE

Simply being aware of behavioural finance principles is not enough, says Greg B. Davies, Lecturer, Executive Education – Behavioural Finance, Said Business School, Oxford University & Head of Behavioural & Quantitative Finance, Barclays Wealth.

Behaviours affect investment decision-making at every level, therefore private wealth managers need to build behavioural finance guiding principles into the portfolios of their clients.

A speaker at the marcus evans Elite Summit 2011 in Montreux, Switzerland, 21 – 23 November, Davies shares his ideas on how to put behavioural finance into practice in private wealth management.

How does behavioural finance affect investment decision-making?

Greg B. Davies: It affects investment decision-making at every level, because investors are humans. Whilst they may try to fulfil a vision of classical finance, as humans, they are blessed with emotional responses, feelings of hope and fear, which affect their decisions.

Behavioural finance pervades the market completely; everything we do is behavioural at its centre.

How should private wealth managers put behavioural finance principles into practice?

Greg B. Davies: Education is a part of it, but it is not enough to simply tell people how to behave. In times of calm when we can think clearly, it is easy to agree on a rational approach. The trouble is that in times of turmoil, our emotional brain takes over.

Private wealth managers need to take practical steps to change clients’ portfolios and investment habits over a long period of time. Firstly, portfolios should reflect the differences amongst individuals. Some people have higher risk tolerance, some display more emotional engagement and others are more focused on long-term goals. People who differ on these measureable personality traits should not be given the same portfolio.

This is different from what the financial services industry and academic finance theorists traditionally recommend, that we should find a mathematically perfect solution for everyone. It completely ignores the fact that no-one is hyper-rational and that being comfortable with one’s portfolio leaves less room for irrational decisions.

Secondly, they need to help their clients come up with a framework, a set of rules that they can follow. The more structure they provide, the more likely it is that they will make better decisions. If people follow a structure over a long period of time, they will have developed the habits to avoid emotionally driven decisions when turmoil comes. We can all sidestep our own rules, but it is difficult to sidestep our habits.

Behavioural finance principles should guide their asset allocation decisions, their product set and be plugged into the sales processes.

How does this work in the family office setting, where multiple family members may be involved?

Greg B. Davies: It makes the situation more complex but it also makes understanding the individual participants more important. To build the group decision-making framework, you need to piece together individual frameworks.

If a group is structured well, it will help individuals overcome their emotional biases. However, if it is not, it can have the opposite effect where the group or family can end up exhibiting much more extreme behaviour than any of the individuals would on their own.

Does awareness of behavioural finance make investors more risk averse, therefore missing out on opportunities?

Greg B. Davies: The people I know who are aware of behavioural finance are actually less risk averse, as they know how best to overcome their emotional biases and respond to the market. They end up taking more risks, as they feel they can respond to their emotions more effectively and thus utilise risk better.

Any final comments?

Greg B. Davies: It is often too late to utilise behavioural finance principles when the markets are in turmoil. To be really effective you need to prepare yourself and the portfolio well in advance.

Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager
marcus evans, Summits Division
Tel: + 357 22 849 313
Email: press@marcusevanscy.com

About the Elite Summit 2011

This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 21 – 23 November 2011. Offering much more than any conference, seminar or trade show, this exclusive meeting will bring together esteemed thought leaders in institutional investing and market leading solution providers for a highly focused and interactive networking event. The Summit addresses the ongoing evolution of alternative investing trends and provides attendees with fresh perspectives on adapting active management methods for a profitable investment portfolio despite market uncertainty.

For more information please send an email to info@marcusevanscy.com or visit the event website at www.elitesummit.com 

marcus evans group – investment sector portal

Complementing our summit format, the Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com

All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com

AgroGeneration on Investing in the Agricultural Space

Charles Vilgrain of AgroGeneration, a sponsor company at the upcoming marcus evans Alternative Investments Europe Summit 2011, on the vast number of opportunities in the agricultural sector available to investors in the alternatives space. Interview with: Charles Vilgrain, Chief Executive Officer, AgroGeneration

FOR IMMEDIATE RELEASE

The combination of an increasing population, changing consumer habits and the use of bio-fuels has led to an increase in consumption that production can no longer keep up with, says Charles Vilgrain, Chief Executive Officer, AgroGeneration. There is a strong need for growth in agricultural production, which institutional investors can prosper from. 

From a sponsor company attending the marcus evans Alternative Investments Europe Summit 2011, in Montreux, Switzerland, 4 – 5 October, Vilgrain discusses the investment opportunities within the agricultural sector. 

What are the benefits and risks involved when investing in alternative assets?

Charles Vilgrain: The advantage of investing in an emerging market such as Ukraine or Argentina is that the potential for growth is enormous. Ukraine could double its agricultural production within the coming 20 years and Argentinian farms are currently producing 100 million tonnes of grain and have the capacity to produce 150 million tonnes. We want to be part of that growth.

The main risks we have encountered when looking into emerging markets, especially in regions such as CIS countries or Latin America, involve the political conditions. Fortunately, this is a measurable risk that can be assessed beforehand.

Within agriculture investing, the biggest threat that producers are facing, besides commodity prices, is the weather. We must diversify climatic risk. It is advisable to look at more than one region. We have numerous farms in Ukraine but are also targeting Argentina as a prospect. 

What are the investment opportunities within the agricultural sector?

Charles Vilgrain: There are huge needs, therefore huge opportunities. By looking at the booming prices of commodities and the diminishing stocks of grains worldwide, we can measure the consumer demand.

In the past five years, we have reached critical points in the stocks-to-use ratio (S/U), which measures the supply and demand interrelationships of commodities. This implies that consumption is growing faster than production. Investing in this market requires money, skills and know-how.

Getting production and consumption aligned will take a while, but this is why there are so many opportunities in this sector.

What led to this gap between production and consumption?

Charles Vilgrain: The combination of three trends has led to this gap.  Firstly, the world’s rapidly increasing population. Secondly, the consumption habits of emerging markets since more and more people are consuming meat and dairy products – it takes three to seven kilos of grains to produce one kilo of meat. Lastly, the usage of agricultural raw materials for non-food purposes, such as for bio-fuels.

The agricultural sector can no longer sustain itself. There are now over one billion people in China who have the same consumption habits of those in the US.

Do you have one final message?

Charles Vilgrain: The consumption of goods is growing faster than ever before, creating huge opportunities for investors.

There are several sustainable investments to be done in the agricultural sector. The world is hungry and will become even hungrier in the years to come.

Contact:
Stacey Melvin
Journalist
marcus evans, Summits Division
Tel: + 357 22 849 400
Email: press@marcusevanscy.com

About the Alternative Investments Europe Summit 2011

This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 4 – 5 October 2011. Offering much more than any conference, seminar or trade show, this exclusive meeting will bring together esteemed thought leaders in institutional investing and market leading solution providers for a highly focused and interactive networking event. The summit addresses the ongoing evolution of alternative investing trends and provides attendees with fresh perspectives on adapting active management methods for a profitable investment portfolio despite market uncertainty.

For more information please send an email to info@marcusevanscy.com or visit the event website at www.aie-summit.com

marcus evans group – investment sector portal

Complementing our summit format, the Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!

About AgroGeneration

Created in 2007, AgroGeneration is the first agricultural listed company on Alternext NYSE Paris. Based in Ukraine, the Group is controlling 50,000 hectares of lands and has produced 120,000 Tons of cereals and oilseeds in 2010. On July 2011 AgroGeneration announced the success of its capital increase. This new fund raising is to be used to invest in additional storage units in Ukraine and expand on a second continent following the successful test in Argentina.

www.agrogeneration.com

About marcus evans Summits

marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com

All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com