-Emerging market (EM) stocks are trading at attractive valuations vs. developed market (DM) stocks -For a similar level of inflation between EM and DM, a higher level of growth is expected in EM -A China rebound should …
In UBP's "Flash Update," the author emphasizes the strong business case for impact investing in emerging markets after facing a difficult first quarter. The year began positively, but emerging markets experienced a setback in February before regaining momentum in March.
In the research paper "Still working from home? US banks are getting worried," Allianz brings attention to the main theme of banking vulnerabilities in emerging markets. The text specifically discusses three pressing issues: alarm bells ringing within emerging market banking,
In a world in which asset managers are struggling to differentiate themselves and outperform their benchmarks, we believe that impact investing provides an answer largely through innovative portfolio construction and we would particularly like to highlight: The results obtained by
The recent shocks to the banking system have cast uncertainty over emerging market (EM) debt. However, despite the high number of distressed EM countries, which are usually smaller and carry idiosyncratic risks, major EMs still seem to possess strong fundamentals
The current optimism in financial markets is not only benefiting equity markets but also emerging debt markets, including the riskiest ones, known as “frontier” or “pre-emerging” markets. However, not all markets are booming. Despite specialized investors making gains of over
After nearly three years of zero-COVID policies, the Chinese authorities relaxed most restrictions towards the end of 2022, including “harsh lockdowns, mandatory testing, and centralised quarantine for positive cases and close contacts.” While this relaxation in restrictions has been reportedly
Flash Update: The decision to invest in emerging markets today should be based on the economic forecasts for the region and managers’ ability to position themselves accordingly. Analysis of UBAM – Positive Impact Emerging Equity’s recent history can shed some
After the recent rally and downward revisions to 2023 earnings expectations EM equities are no longer cheap on a forward P/E basis. The price-book ratio is close to its historical median. On a dividend yield basis, EM remains cheap versus
Emerging markets are the most at risk from the effects of climate change and the immediate effects of war in Ukraine. This is leading to potentially damaging social impacts, including food insecurity and rising inequality. Major gaps remain in the
The macroeconomic backdrop, and regime shift, created a challenging environment for EM assets in 2022. Slowing economic growth, accelerating inflation, exacerbated by Russia’s invasion of Ukraine, and tighter global financial conditions were all headwinds. EM local and dollar debt both
The macroeconomic backdrop, and regime shift, created a challenging environment for EM assets in 2022. Slowing economic growth, accelerating inflation, exacerbated by Russia’s invasion of Ukraine, and tighter global financial conditions were all headwinds. EM local and dollar debt both
Year-to-date, EMEA markets have taken a hit, while several Asian EM, including China, lag the index. Conversely, commodity-producing Latin American and Middle Eastern markets have been the top performers. After the recent rally, and downward revisions to 2023 earnings expectations,
Obligaties uit opkomende markten bieden enkele van de aantrekkelijkste rendementen ten opzichte van risico sinds vele jaren, vooral in het licht van de sterke fundamentals van bedrijven en de economie. Professionele beleggers zeggen al lachend dat het VK een opkomende
Global markets ended November on a positive note after months of generally poor returns. Equities were bolstered on hopes that central banks are heading closer to their terminal rates amid looming recession risks. In Euro terms, European equities recorded staggering
Obligaties uit opkomende markten werden getroffen door inflatie, renterisico's, een stijgende dollar en geopolitieke spanningen. Maar de bezorgdheid over wanbetaling is overdreven. Beleggers in obligaties uit opkomende markten hebben zelden te maken gehad met een meer complexe economische en geopolitieke
In een verder ongunstige omgeving voor obligatieemittenten en -beleggers ziet de toekomst voor obligaties uit opkomende markten er zonder twijfel groen uit. Stijgende wereldwijde rentes en volatiele markten hebben zwaar gewogen op zowel het aanbod van als de vraag naar
It has been an unrelenting year of negative headlines, with a war in Ukraine, inflation concerns and recession fears jolting investors into a frenzy. Capital Group Investment Director David Cheng sat down with Portfolio Manager Luis Freitas de Oliveira to
In een verder ongunstige omgeving voor obligatieemittenten en -beleggers ziet de toekomst voor obligaties uit opkomende markten er zonder twijfel groen uit. Stijgende wereldwijde rentes en volatiele markten hebben zwaar gewogen op zowel het aanbod van als de vraag naar
Emerging market equity returns have been resilient year-to-date in the face of increasing uncertainty over the global economy and rising interest rates. The region remains our preferred choice in our model asset allocation, especially if inflation peaks, which we expect
UBAM – Positive Impact Emerging Equity (PIEE), our impact investment solution for investing in EM, has outperformed its benchmark index in the year to date. We would also highlight the following point …
The subject of inflation has been seemingly omnipresent over the past two years as the global economy moved beyond the initial shock of a global economic shutdown into a world of supply disruptions and pent-up consumer demand. Initial conjecture over
Emerging market equity returns have been resilient year-to-date in the face of increasing uncertainty over the global economy and rising interest rates. The region remains our preferred choice in our model asset allocation, especially if inflation peaks, which we expect
The War in Ukraine is a daily reminder of how precious freedom and democracy are, and how essential security is. The respect of civil liberties and political rights has been at the core of our proprietary model for sustainable countries
The Russia-Ukraine conflict, a spike in commodity prices and rising global inflation have raised fresh questions about the outlook for emerging markets (EM) debt. Recent forecasts from the International Monetary Fund and World Bank suggest global growth is slowing. And
De digitale revolutie is niet alleen een zegen voor de wereld. Voor opkomende markten kan het wonderen verrichten voor de economie. Digitalisering zou deze landen immers in staat kunnen stellen om trage ontwikkelingsstadia over te slaan.
CROSS ASSET Investment Strategy: The current repricing is a reminder of a regime shift in which stagflationary concerns are becoming prominent. Investors should move towards quality segments in credit and equities, and aim to benefit from the regional divergences that
Riding the Green Wave: Green and sustainable investment in emerging markets and developing economies (EMDEs) rebounded from pandemicrelated challenges to reach record levels in 2021. This report provides an overview of developments in the market for green bonds issued in
We kijken naar het belang van de Russische invasie van Oekraïne voor opkomende markten op de middellange en lange termijn. De Russische invasie van Oekraïne heeft de aandelen- en obligatiemarkten wereldwijd in beroering gebracht. Maar in de opkomende markten zullen
In this Q&A, Kirstie Spence and Robert Burgess share their views on Russia, commodity prices and the impact of the conflict on emerging markets. How does the Russia-Ukraine conflict compare to previous periods of geopolitical instability? Kirstie: The current situation
The economic damage from the Russia-Ukraine conflict has made the Emerging Markets (EM) outlook more uncertain. While the uncertainty persists and the final outcome of the war is still difficult to anticipate, we believe that macro fundamentals will be impacted
Frontier markten bieden zeer aantrekkelijke kansen voor goed voorbereide beleggers in zowel aandelen als obligaties. Nu de opkomende markten (EM) steeds meer bekend terrein worden voor beleggers, is een avontuurlijke minderheid op zoek naar nog minder ontwikkelde markten buiten de
Perspectives and insights on Mexico, Central America and the Caribbean, and South America: At COP 26 in Glasgow in November 2021, Janus Henderson convened a panel of industry experts on the topic of Decarbonisation in Emerging Markets. The panel included
Podcast – Episode #1 The various countries that make up emerging markets have shown incredibly rapid and dynamic development. In this first episode we look ahead to the next decade with Capital Group Investment Specialist Valeria Vine: where are emerging
In this paper, we will discuss the outlook for emerging market (EM) fixed income in 2022 and the key themes investors are likely to focus on at the beginning of this year. A waning global growth momentum, rising inflation and
Disappointing US dollar bond returns in EM local currency debt has led to a decline in flows into the asset class over the past decade. In this paper, we discuss the key reasons to invest in EM local currency debt, some of the factors behind the recent weakness in the asset class returns and prospects for the asset class going forward.
The gap between emerging market (EM) inflation over developed market (DM) inflation has remained contained this time, in part due to weak economic conditions, muted domestic credit creation and proactive EM central banks. Tighter EM financial conditions should anchor longer
Valuations vary 1. Investment grade (IG) sovereign and corporate spreads are well below historical medians 2. High yield (HY) spreads offer more value, especially in sovereign EMD where the dispersion between countries has increased
Bedrijven uit opkomende markten maken steeds vaker gebruik van een innovatief type obligatie om hun inspanningen voor de groene transitie te ondersteunen. Van kustoverstromingen tot een mogelijke ineenstorting van de landbouwproductie, opkomende economieën zijn kwetsbaarder voor de gevolgen van de
As U.S. inflation is hitting three-decade highs, market talk has been all about “liftoff:” When will the Federal Reserve and others start raising their policy rates? This is old news in emerging markets (EMs), where many countries have already raised
During the past quarter, markets have become increasingly concerned about a growth slowdown, partly due to a resurgence of COVID-19, and partly due to global supply chain disruptions, which also caused a rise in inflation. This in turn tightened global
As the world’s largest emerging market, China is always on our radar. However, the recent news of property developer China Evergrande Group has prompted fear in the markets over contagion. Here’s what we’re saying about the current situation.
After seven consecutive months of gains, global equities fell by 4.3% in September (the MSCI AC World index in US dollar terms), cropping their year-to-date growth to 9.8%. While emerging market equities posted a similar loss (-4.2% for the MSCI
In this quickfire Q&A, Yoram Lustig, Head of Multi-Asset Solutions, EMEA, outlines the compelling reasons why investors should consider a strategic allocation to emerging market equities – as well as the benefits of employing active management in this increasingly diverse
More monetary policy control as rate decisions have a broader impact. Digital currencies issued by emerging market (EM) central banks are set to enhance financial inclusion and facilitate greater control over their nations’ economies. As central bank digital currencies (CBDCs) are
The market seems very positive on the global backdrop — do you agree with the consensus views? How will this impact emerging market debt?
The headline numbers tell a fairly grim story. Global dividend payouts fell 12.1%1 in 2020 as the COVID-19 pandemic forced economies to shut down for a prolonged period. The economic inactivity prompted many companies to go into …
Value investing is coming in from the cold. After a decade of strong value outperformance in emerging market equities from 2001 to 2010 came a decade of sustained underperformance. In 2020, the value/ growth divergence in EM reached an extreme
Emerging market assets continued to underperform in a week filled with geopolitical upheaval. Low vaccination rates and increasing policy tightening in the emerging world are a source of concern. The market is also worried about Chinese growth prospects, although we
Weekly investment update: At first sight, the direction of financial markets in July might have come as a surprise: global equities posted their sixth consecutive monthly gain despite a steep drop in emerging market equities, while bond markets also recorded
