Same same but different - where to find opportunities in Emerging Markets

Pendal Group

Pendal Group

Same same but different - where to find opportunities in Emerging Markets. EMs continue to offer many structural advantages over the developed world - better growth, demographics and debt profile - yet they're trading at a discount to the rest of the world and their long-term averages. While it's true that markets with greater exposure to US monetary policy will face headwinds as QE winds back, there are a number of opportunities in economies that will benefit from US economic improvement that investors can exploit. It is a mistake to treat EMs as an homogenous whole. Countries with current account deficits and liquidity-fuelled inflation - such as Brazil, Indonesia, and Chile - face significant headwinds in this environment. Other EMs don't; China and Taiwan both run a current account surplus and have inflation under control. Neither is reliant on commodity exports. Both are industrial exporters and therefore beneficiaries of the US economic improvement that is prompting tighter monetary policy. Where are the opportunities? Read four reasons to invest in EMs from Chris Adams here (VIEW LINK)


Pendal Group
Pendal Group
Pendal Group

At Pendal Group, our vision is to combine the benefits of our strong institutional foundation and performance-focused culture with a multi-boutique specialist investment approach. We believe this approach firmly positions Pendal to achieve...

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