Their often solid profitability and their ability to protect this can make them attractive propositions.
Their dominance, however, can undermine suppliers and labour markets and their pricing power can jeopardise competition, both at the consumer and at the antitrust level.
Check out our infographic on superstar pricing power as a challenge for policymakers and investors:
This article appeared in The Intelligence Report – 1 October 2019
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Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.