CHANGE MAKERS REGINA CHI

is Vice-President and Portfolio Manager with lead responsibility for AGF Emerging Markets strategies. Regina is also a member of the AGF Asset Allocation Committee (AAC), which consists of senior portfolio managers responsible for various regions and asset classes. The AAC meets regularly to discuss, analyze, and assess the macro-economic environment and capital markets to determine optimal asset allocation recommendations. Regina is also co-Chair of AGF’s Diversity, Equity, and Inclusion Committee.

Regina was most recently a partner at DePrince, Race & Zollo Inc. where she was portfolio manager for the Emerging Markets and International Value disciplines. She was also head of portfolio management and research as they related to Emerging Markets, Global, International, and International Small Cap strategies. Prior to this role, she held senior investment management roles at Oppenheimer Capital, Federated Investors, and Clay Finlay Inc. Regina has almost 30 years of experience managing global equities. Regina is a CFA® charterholder. She received her Bachelor of Arts in Economics and Philosophy from Columbia University.

Tell us about what you do. I am an emerging market portfolio manager covering all emerging markets (EM) across the globe. So I manage EM strategies including China-only and emerging markets excluding China.

What opportunities excite you the most in regards to your work? There's a lot to be excited about when you're covering emerging markets. Emerging markets are so broad and diverse, and no country is identical to each other. There are so many heterogeneous and idiosyncratic factors that determine how a country's stock market performs. The rich history and transformation of a developing country or region is also very exciting. For example, China has been a country that has evolved dramatically over the last 10-15 years. Almost 20 years ago, India and China had the same level of GDP per capita, but China has been able to grow from $2,000 to over $12,000. Whereas, India has remained unchanged. China has undergone a big evolution through their technological advancements that are underappreciated. It is now the second largest economy in the world behind the United States and could potentially take the top spot in a couple of years. That's pretty exciting.

Have you seen a change in the way investments are being made due to current world events? Similar to what we're seeing in the United States, there are inflationary pressures in emerging countries. And it's not only due to the stimulus provided during the COVID-19 lockdowns but also because of reopening which spurred tremendous demand for goods and services, including travel. As a result, central banks in EM had to respond to higher inflationary pressures much earlier than the Fed in the United States. Certain countries started to raise interest rates in the second half of 2021, well ahead of the Fed, the European Central Bank, or the Bank of England.

China, on the other hand, is on a different trajectory. It has actually been cutting interest rates and trying to stimulate their economy, and it helps that their inflation is low compared to Latin America or Central Eastern Europe. So, you have the world's second largest economy actually going the opposite direction than the rest of the world, which is, I think, fascinating. Given the recent reopening, we will definitely see a pick-up in CPI but manageable at 3% compared to 6.4% in the US and 8% in Europe.

So in this inflationary backdrop and ahead of a potential recession, we are focused on investing in high quality companies with a defensible franchise and competitive moat.

You are the co-chair of the Diversity, Equity, and Inclusion committee at AGF. Can you tell us a bit about the work you are doing in this arena and how that work gets implemented?

My proudest work is being the co-Chair of the Diversity, Equity, and Inclusion (DEI) Committee. The purpose of our committee is to create a more inclusive workplace and key to this is raising awareness of DEI issues through education. We currently have four areas of focus: unconscious bias, anti-racism, building allyship in the workplace, and establishing high-trust relationships. We recently instituted mandatory, annual unconscious bias training, and we will continue to build on this with additional workshops. We are also rolling out employee research groups, mentorship programs, and other educational webinars. So, it's been really gratifying to implement these initiatives because ultimately, we want people to feel that they can bring their authentic self to work.

What is your biggest career challenge you have faced and what did you learn from it? I've been in the investment management business for almost 30 years, and if you look at the global landscape, only 7% of the global portfolio managers are women. So, it's great that DEI, specifically gender diversity, is now at the forefront of business leaders’ minds, but 30 years ago there was none of that. So my biggest challenge earlier in my career was getting a seat at the table.

Today there are more seats for women at the table, and women are willing to be mentors to each other. Before it was very competitive, even among women.

What do you consider your proudest accomplishment? My kids. You never know what’s going to happen tomorrow, and one day what I accomplished as a portfolio manager will not matter. However, the values I teach to my kids, and how they endure in their lives, is important to me.

What is the one piece of advice you would give to current MKA students? Make sure you're being heard. Your voice makes a difference. It makes an impact. I tell women all the time, it never hurts to ask. Ask. Ask for that promotion. Ask for that raise. If they say no, you just keep asking.