Conventional wisdom has it that superior GDP growth in EMs will produce superior EPS growth. Yet, over the last decade real EPS in India has fallen by almost 60% while real GDP has grown at over 7% p.a. We explain this ‘growth gap’ and debunk the EM growth fallacy. The... Show More
Investors typically have on hand a long list of concerns arguing against investing in emerging markets. These concerns often centre on the ability to regather capital once invested, the extent of government intervention, the ranking of investors’ interests and rights, issues of corporate governance, as well as the inherent volatility... Show More
Emerging markets were volatile throughout 2018, especially during quarter four as they sold off and took some valuation froth out of the market. This has continued into 2019 thus far, but as investors, it’s important to step back and take a longer-term view of the situation. I recently sat down... Show More
Last month we saw the FED raising rates for the 9th time in the last 3 years, now to 2.25-2.5% per annum. Also, this month, the FED might keep its Quantitative Tightening (QT) program to US$50 billion per month, in order to reduce its inflated balance sheet. Show More
There are a number of reasons to switch weightings out of one asset class and into another. One of those reasons, which is often an effective strategy, is an absolute or relative valuation which has become stretched (one way or the other). Show More
Sometimes it seems like there’s nowhere to hide. Equity investors were smacked in the face over the month of October, with waves of selling hitting sharemarkets from Sydney to Shanghai and London to New York. Something like $7 trillion was wiped off the value of global sharemarkets. Tighter financial conditions,... Show More
2018 was another eventful year for markets around the world, but what lies in store for the next 12 months for investors? Andrew Milligan, Head of Global Strategy, outlines Aberdeen Standard Investments’ 2019 global markets outlook. Here are five key takeaways. Show More
This week Fidelity launched its first Active ETF on the Australian Stock Exchange - the Fidelity Global Emerging Markets Fund (Managed Fund) ASX:FEMX. Investors can now diversify their portfolio by investing in emerging markets in one trade on the ASX, with one of Australia’s most experienced fund managers. Backed by... Show More
With rates marching higher in the US, higher risk asset classes such as emerging market equities are seeing rising volatility. As risk reprices across the market, this will cause problems for weaker companies and countries. There’s one group in particular that faces significant challenges, explains Alex Duffy, Portfolio Manager at... Show More
A few months ago, local brokers in Manila were wondering what was I doing in their city. Apparently I was a year late. While in 2017 the local bourse jumped 25%, since January 2018 the MSCI Philippines index had fallen 15%. Show More
“That which has been is that which will be, and that which has been done is that which will be done. So there is nothing new under the sun.” Ecclesiastes 1:9. Show More
Scott Haslem started his career in 1991 as an economist working alongside the likes of Glenn Stevens and Bernie Fraser at the RBA. Today he is the Chief Investment Officer of Crestone Wealth Management, a firm that oversees ~$16 billion of assets on behalf of wealthy individuals and not for... Show More
So far, 2018 has been a difficult year for emerging market (EM) assets, which in the last few months have fared significantly worse than their counterparts in developed markets. This has been due mainly to worldwide issues but also country-specific political uncertainty. Many investors are now asking if the sell-off... Show More
We have passed the sweet spot in this business cycle, where easy monetary conditions and synchronised growth pushed share markets higher. We are transitioning into a more challenging phase, as China and Emerging Markets (EM) decouple and we are left with a US economy at risk of overheating. Show More
Emerging markets have begun to recover following several years of flat returns following the GFC. Rohit Chopra, Portfolio Manager for the Lazard Emerging Markets Equity Fund, believes that strong company fundamentals and growing economies have created a positive environment for emerging markets equities. Show More
This week it's Emerging Markets sovereign CDS (Credit Default Swaps). The reason why I think this chart is really worth paying attention to is that after reaching a record low in mid-January, there has been a swift reassessment of risk in Emerging Markets. Typically when EM sovereign CDS turns up... Show More
In emerging markets, there’s a small group of Chinese technology businesses that get all the attention. These firms make up a large part of the emerging markets index but offer few opportunities for the contrarian investor. Here, Rohit Chopra from Lazard Asset Management explains where they’re finding opportunities today. Show More
There’s never a dull moment as an emerging markets investor, says Rohit Chopra, Portfolio Manager at the Lazard Emerging Markets Equity Fund. Being successful in emerging markets requires strong conviction, and the patience to ride out volatility. Watch the short video below to hear more. Show More
In his latest investment insight, Rob Lovelace, Vice Chairman of Capital Group, explores the profound changes occurring in global trade and key themes investors should consider. Show More
Macquarie Bank has been betting big on the world’s fastest growing economy, India, through its various infrastructure funds and joint ventures. One example is their recent L1 (highest) bid of $1.94bn for nine road assets under the Toll-Operate-Transfer (TOT) model. This deal is one of the largest FDI in public... Show More