MOBILIST Investor Research on Capital Allocation Strategies

Research on capital allocation strategy for emerging/frontier markets, and the role of information asymmetry in shaping capital flows.

• From: Foreign, Commonwealth & Development Office
• Published: 7 December 2021

• Funds: Open
• Countries: Angola, Benin, Botswana, Burkina Faso and Burundi
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  Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, China, Comoros, Congo, Congo (Democratic Republic), Djibouti, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, The, Ghana, Guinea, Guinea-Bissau, Indonesia, Ivory Coast, Kenya, Laos, Lesotho, Liberia, Madagascar, Malawi, Malaysia, Mali, Mauritania, Mauritius, Mongolia, Mozambique, Namibia, Niger, Nigeria, North Korea, Philippines, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, South Africa, South Sudan, Sudan, Swaziland, Tanzania, Thailand, Togo, Uganda, Vietnam, Zambia, and Zimbabwe
• Sector: Private sector/business and Research
• Eligible organisations: Non-governmental organisations (NGOs), UK-based non-profit organisations, UK-based small and diaspora organisations, Companies, Educational institutions and Organisations based in Low to Middle Income Countries (LMIC)
• Value of funding: £10,001 to £100,000 and £100,001 to £500,000

Overview

MOBILIST will sponsor an ambitious programme of research to inform and influence market actors, filling knowledge gaps and correcting misperceptions to enhance the volume and efficiency of capital allocated to emerging and frontier markets.

This request for proposals (RFP) relates to the first piece of Investor Research commissioned under MOBILIST’s research agenda, which will constitute the flagship knowledge product from the first year of operation.

The knowledge gap to be addressed by this piece of research is the need for rigorous analysis of the range of allocation strategies that attract UK/Canadian/EU or US institutional investors to emerging and frontier market listed assets. And, in particular, the role of information asymmetries in determining asset allocation strategy.

The Intended Audience for this research is asset managers and asset consultants with a mandate to invest in/advise on emerging and frontier markets, and additional asset managers and consultants interested in developing such a mandate.

What the fund will achieve

The bidder will help to fill the identified knowledge gaps, by answering the following research questions:

• strategy: how do asset allocators rationalise their emerging and frontier economy listed market strategies? How does this vary between allocators, markets, and asset classes? How has the rationale evolved over time?
• information: to what extent do information asymmetries determine which emerging and frontier market economies and listed asset classes are prioritised by international investors?
• solutions: what market-based or policy/regulatory solutions have helped overcome information asymmetries for 2 to 3 case study emerging/frontier markets or asset classes? These could include cross-listing, peer networks, investment plat-forms, in-market local partnerships, M&A, and mandatory disclosure frameworks
• outlook: how are allocation strategies for emerging and frontier market Listed Assets changing (and likely to change) in the context of key megatrends, including the slowdown in China, rapid urbanisation and infrastructure demand, the rise of mandatory environmental, social and governance (ESG) disclosures, and climate change?

We expect the study will require a brief desk-based literature review building upon the existing review, quantitative analysis of emerging and frontier economy listed assets, and key informant interviews with emerging and frontier market strategists at a representative sample of UK/Canadian/EU or US listed market asset allocators. The sample should include stratification by size and liquidity, risk, and return requirements. Case studies are to be agreed with Chemonics and the Advisory Panel during inception.

Background information

A flagship Foreign, Commonwealth and Development Office programme, MOBILIST is focused on mobilising public markets to catalyse new scalable and replicable financial products that support the Global Goals and net-zero transition.

MOBILIST will sponsor an ambitious programme of research to inform and influence market actors, filling knowledge gaps and correcting misperceptions to enhance the volume and efficiency of capital allocated to emerging and frontier markets. Our research serves 3 primary audiences:

• asset allocators, including asset owners, asset managers, and asset consultants, some of whom have emerging and frontier market track record and are increasingly familiar with alternative asset classes (‘Investor Research’)
• emerging and frontier economy firms and fund managers, with potential to list on international markets (‘Product Research’)
• intermediaries and facilitators, including policymakers and regulators in emerging and frontier markets (‘Policy Research’)

Combined with MOBILIST seed capital and technical support for high potential firms and fund managers, MOBILIST’s research outputs will help demonstrate the potential of emerging and frontier market listed assets for international portfolios. Ultimately, MOBILIST research will help enhance the flow of capital into assets that contribute to sustainable economic development in emerging and frontier markets, contributing at scale to the Sustainable Development Goals.

Contacts

Expressions of interest or queries may also be emailed to the tender email address [email protected], please copy your email to [email protected].

Published 7 December 2021