EI Sturdza launches new emerging market fixed income fund
EI Sturdza has launched a new emerging bond fund investing in what it calls “high quality” EM fixed income bonds.
EI Sturdza has launched a new emerging bond fund investing in what it calls “high quality” EM fixed income bonds.
Brexit-fuelled uncertainty has highlighted the growth potential of emerging markets equities and could signal the start of a multi-year bull run, says Didier Rabattu, head of global equities at Lombard Odier Investment Managers.
With the Fed keeping rates on hold and sterling under pressure, it is a good time to look for dips in commodities and increase exposure to emerging market equities, says Trevor Greetham, head of multi-asset at Royal London Asset Management.
As worries over China’s economy and currency ease and political risks in Europe and the US flare, Asia could become a safe-haven, said Joshua Crabb, Old Mutual Global Investors head of Asian equities.
The macro economic drivers for emerging equities are largely unaffected by the UK referendum vote and the firm has maintained its overweight call.
This year has marked a turnaround in the fortunes of emerging markets, driven by an increase in global risk appetite, a hike in commodity prices and an easing of concerns over the slowdown in the Chinese economy.
For the third time since 2013, the US index provider rejected the inclusion of China A-shares in its flagship emerging market indices, highlighting key unresolved issues.
For the next five years investors with multi asset portfolios need to be thinking in terms of a 2.5-3.0% real rate of return and even then they will need to hold a lot more high risk assets, according to Pictet Asset Management.
Despite the volatility of global financial markets this year and a steady decline in investment returns, confidence among the world’s sovereign wealth funds remains high, a survey by Invesco has found.
China’s miscommunication to the markets and lack of transparency in carrying out financial reforms are investment risks for the region, according to Monica Defend, Pioneer Investments head of global asset allocation research.
A cautious US Federal Reserve, stabilisation of oil prices and accommodative monetary policies are among the factors expected to drive emerging market equities, according to HSBC Private Bank.
China’s currency depreciation trend playing out in 2016 looks set to continue, according to Jade Fu, investment manager at Heartwood Investment Management.