Ben James

Escala, an Australian private wealth investment and advisory firm, working with high-net-worth individuals and families, family offices and not-for-profit organisations, says investors need to place greater emphasis on understanding the country-level drivers shaping global markets, as differences between economies play a larger role in outcomes.

The firm works with clients who have complex financial needs, and where their investment decisions extend beyond markets to structure, timing and long-term objectives.

Escala says that while broad regional exposures such as ‘Europe’ and ‘emerging markets’ remain a useful foundation, they are increasingly being complemented by a more granular view of the underlying exposures within those regions.

Ben James, Chief Executive Officer at Escala, said the shift reflects how portfolios are being constructed rather than a change in overall direction.

“For most clients, this is not about moving away from global exposures,” Mr James said. “It is about understanding them more clearly and understanding where capital is actually deployed, what is driving returns, and how the different countries interact.

“The difference is not access. It is a judgement of what risks we want to take, what to avoid, and how it fits together in a portfolio.”

He said that as markets become less synchronised, investors are spending more time on how portfolios are structured and how risks are distributed across them. “Advice is considered over years, not quarters.”

Escala said the growing dispersion between countries in growth, inflation, policy settings and sector composition is making it more important to look through regional labels, rather than relying on them in isolation.

Tracey McNaughton, Chief Investment Officer at Escala, said recent market behaviour has reinforced the value of that approach.

“Japan is a good example,” Ms McNaughton said. “Corporate governance reform and changes in capital management have supported a distinct investment case that is not captured by a broad ‘Asia’ allocation.”

She said a similar divergence is evident across emerging markets.

“Broad market indices can give the impression of consistency where that does not exist.

“The differences between countries such as India and China in terms of growth, policy direction and capital flows are meaningful. Even within Asia, markets like South Korea are being influenced by their own mix of reform and sector exposure.”

South Korea was among the strongest-performing equity markets globally last year, as semiconductor demand and corporate reform momentum helped offset concerns around US tariffs.

This divergence pattern has continued into this year.

“The MSCI World Index returned 5.2% year-to-date to 30 April 2026, while the MSCI Emerging Markets Index returned 13.9% over the same period. In US dollar terms, these figures mask significant dispersion between the strongest and weakest country markets inside those indices,” Ms McNaughton added.

“In some cases, technology-exposed markets have advanced sharply, while others tied more closely to energy, financials or domestic demand have lagged, despite sitting within the same regional grouping.

“The same pattern can be seen in geopolitical tail risks. Looking at exposure at a country level helps clarify where risk is concentrated, which markets are absorbing those risks, and which are less exposed.”

Escala said a more granular understanding of geographic exposure can improve portfolio construction by helping investors better assess diversification and identify where risks and opportunities are concentrated.

“Diversification is not only about how many regions you hold,” Mr James said. “It is about how those exposures behave together.”

He said this is particularly relevant for clients making long-term decisions across generations or managing capital against defined objectives.

“The aim is to build portfolios that hold up over time, and make decisions that clients remain comfortable with.”

Escala emphasised that this approach is underpinned by a disciplined investment process, including country-level macro and policy analysis, identifying structural drivers of return, and implementing exposures through carefully selected managers with a focus on risk, liquidity and portfolio fit.

Ms McNaughton said the value ultimately comes down to execution. “Identifying a market that looks attractive remains extremely important. As important, is to understand its role in the portfolio and how it contributes to overall outcomes.”

Escala expects this more considered approach to global investing to remain vital as the world shifts from a rules-based order to one dictated more by state-backed industrial policy.

“In a more complex environment, clarity becomes more important,” said Mr James.

“Broad exposures remain part of the solution, but understanding what sits beneath them, and where adjustments need to be made, is where the real value is added.”

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Stanford is an experienced private markets investor with a career spanning more than two decades across asset consulting, direct investing and venture capital strategies.

One of his most significant roles was as Head of Private Equity and Venture Capital at Hostplus, where he established the fund’s direct co-investment program and positioned Hostplus as a recognised leader in venture investing. He has also worked at the Clean Energy Finance Corporation, led the Venture Capital investment strategy at Breakthrough Victoria and as JANA Consultant was responsible for consulting and investment research. He began his investment career at Russell Investments as a private equity, infrastructure and alternatives researcher.

Ben James, CEO of Escala Partners, said Stanford’s appointment reflects Escala’s increasing focus on sophisticated strategies beyond traditional markets. “We are pleased to have Neil join our team at a time when we are increasingly offering our clients access to high-quality alternative investments. The landscape for investors is changing and our clients are no longer satisfied with traditional exposures to equities and bonds. They want exposure to private markets, venture and alternative strategies that can drive returns whilst balancing risk. Neil’s deep experience in structuring co-investments and identifying value in complex markets will be instrumental in delivering that.”

James added that Escala’s strength lies in bridging advice with execution. “At Escala, our advisors and investment specialists work hand in hand to ensure that our clients are not only aware of the forces shaping global markets but also have access to practical solutions that can enhance their portfolios. Neil will play a central role in building that bridge between research, strategy and execution.”

Chief Investment Officer Tracey McNaughton emphasised the importance of alternatives in the firm’s client offering. “At Escala, we are strengthening our commitment to alternative investments given the asset class’s ability to enhance returns, reduce volatility and offer meaningful diversification. Private markets can provide access to growth opportunities that are less correlated to public markets, but thoughtful portfolio construction is critical. Neil brings not only a proven track record, but also the ability to align opportunities with the long-term wealth goals of our clients.”

McNaughton added that Stanford’s venture capital experience would be a strong complement to Escala’s existing capabilities. “Venture and private equity are not just about chasing the next big thing; they are about identifying businesses and assets that can compound value over decades. Neil has demonstrated that discipline throughout his career, and we are excited to bring that expertise to our clients.”

Stanford said he was excited to join Escala at a time of growing demand for alternative investments. “What drew me to Escala was its commitment to delivering truly bespoke solutions for clients. Alternatives are no longer on the fringe, but a core part of sophisticated portfolios. I look forward to bringing my experience in building co-investment programs and venture strategies to help Escala’s clients access opportunities that are differentiated, resilient and aligned with their long-term wealth ambitions.”

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