In
this
series
of
short
profiles,
we
ask
leading
fund
managers
to
defend
their
investment
strategies,
reveal
the
biggest
risks
to
the
bull
market,
tell
us
their
unpopular
investment
opinions,
and
discuss
what
they’d
never
buy.
This
week
our
interviewee
is
James
Johnstone,
Portfolio
Manager
of
the
Morningstar
5-star
rated
Redwheel
Next
Generation
Emerging
Markets
Equity
Fund.
Describe
Your
Investment
Strategy
We
seek
outgrowth
at
a
reasonable
price
over
the
next
10
to
20
years.
For
example,
I
first
researched
Taiwan
Semiconductor
Manufacturing
Company
(TSMC)
as
a
$22
billion
(£17.4
billion)
company
in
2001.
Its
market
capitalisation
is
now
$675
billion.
What
Are
2024’s
Biggest
Investment
Opportunities?
The
return
to
real
assets
and
the
recognition
the
world
has
finite
resources
in
commodities
and
people. Emerging
markets
provide
the
solutions
to
the
world’s
problems.
They
meet
much
of
the
world’s
commodity
needs
and
have
younger
populations
with
strong
workforces,
which
is
why
our
strategy
focuses
on
emerging
and
frontier
markets.
What
Are
The
Biggest
Risks
to
The
Current
Bull
Run?
Any
increase
in
geopolitical
tensions
between
the
West
and
a
China/Russia/Iran-led
alliance
may
be damaging
for
the
global
economy.
Who
is
the
Most
Inspiring
Person
You’ve
Worked
With?
Robert
Friedland.
I
have
invested
in
several
of
Robert’s
mining
operations
over
the
last
three
decades.
He
has
always
been
at
the
very
forefront
of
thought
leadership
on
how
the
world
can
transition
to
clean
energy
and
combat
climate
change.
I
also
owe
a
lot
to
Philip
Ehrmann
who
was
my
inspirational
boss
at
Gartmore
and
taught
me
a
lot
about
emerging
markets.
What
(if
Any)
Investments
Fit
the
‘Buy
and
Hold
Forever’
Category?
Well,
I
wish
I
could
get
in
my
time
machine
and
say
TSMC
from
2002.
I think
it
will
continue
to
dominate
the
world
of
semiconductors
for
years.
For
decades
to
come,
I
do
not
think
you
can
get
a
better
investment
than
a
tonne
of
copper.
What
Would
You
Never
Invest
in?
Never
say
never,
but
I
am
not
a
big
believer
in
crypto.
How
Worried
Should
Active
Managers
be?
Active
managers
should
always
be
worried
–
it’s
their
job!
I
think
there
will
always
be
a
role
for
the
human
brain
versus
a
machine.
Everyone
– be
they
quant
machines
or
real
people
–hates
the
bottom
and
loves
the
top
of
every
cycle. It
is
just
fear and
greed.
Will
computers
of
the
future
ignore
those
emotions? Ironically,
active
long-term
managers
should
be
able
to
outperform
as
markets
become
increasingly
passive
and
quant
driven.
What
Unpopular
Investment
Opinions
Do
You
Have?
How
can
over
a
third
of
the
world’s
population
attract
barely
0.00001%
of
the
world’s
investment
savings?
Frontier
markets
have
young
people
and
commodities,
which
most
developed
markets
are
lacking.
The
West
will
need
to
prioritise
investment
in
these
economies
over
the
next
50
years.
Africa,
South
Asia
and
Latin
America
will
likely
be
the
surprises
of
the
next
three
decades
in
the
same
way
East
Asia
and
Eastern
Europe
were
over
the
last
three
decades.
Will
We
See
a
Crypto
ETF
in
the
UK?
I’m
sure
we
will.
I
just
doubt
I’ll
notice!
Does
Asset
Management
Have
a
Role
in
Assessing
Social
Factors?
Asset
management
has
a
role
in
producing
returns,
and
returns
are
only
produced
by
companies
and
assets
which
grow
with
the
societies
they
service.
Therefore,
all
stakeholders
need
to
flourish
to
allow
returns
to
be
sustainable.
So
yes,
definitely.
Have
You
Ever
Engaged
With
a
Company
and
Been
Particularly
Pleased
(or
Disappointed)
by
the
Outcome?
As
a
team
we
meet
over
3,000
companies
a
year.
We
are
always
happy
when
we
get
it
right.
We
learn
when
we
get
it
wrong.
And
we
still
own
TSMC
in
the
funds,
so…
What’s
The
Best
Bit
of
Advice
You’ve
Ever
Been
Given?
Always
think
forests
and
trees.
What
Does
Your
Life
Outside
of
Fund
Management
Look
like?
Family,
freinds,
gardening,
and
real
tennis.
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