Emerging debt inflow run loses pace
The record run of flows into emerging market debt is continuing, but is losing pace as investors are taking profits against a backdrop of rising US rates and some geopolitical issues.
The record run of flows into emerging market debt is continuing, but is losing pace as investors are taking profits against a backdrop of rising US rates and some geopolitical issues.
Global life premiums growth in 2018 and 2019 will continue to be carried by the strong performance of emerging markets, in particular China, as advanced markets continue to experience sluggish growth, according to a report by Credit Suisse.
Most asset classes will provide negative real returns from now on, but there is one exception to this rule, according to US asset manager GMO.
With most global fixed income markets priced for perfection, investors are flocking to the one yield hold-out left: emerging market debt. But are investors really being compensated for the risk?
Hong Kong-based asset manager Value Partners Group is promoting its expertise in Asia in a bid to attract UK and European sales to its Global Emerging Markets (Gem) strategy.
Franklin Templeton Investments has launched a smart beta emerging markets exchange traded fund, which aims to provide higher-risk adjusted returns and lower volatility than the MSCI Emerging Markets Index.
Most UK investors don’t think they know enough about the risks to invest in fast-growing developing countries, according to a study by the Templeton Emerging Market Investment Trust, which used to be run by Mark Mobius.
The emerging market specialist Ashmore Group has reported a $6.3bn (£4.7bn) surge in assets under management during the quarter ended 30 September 2017.
Pacific Asset Management (PAM) is launching an emerging market Ucits fund in November.
Emerging market debt has been the best-selling asset class with European investors this year, but flows turned negative in late September against a backdrop of a hawkish Fed and a strengthening dollar.
Donald Trump’s administration has presented more opportunities than problems for emerging market equity managers, argues GAM’s Tim Love.
Norway’s sovereign wealth fund intends to reduce its exposure to emerging market currencies and corporate bonds as it seeks to simplify its fixed income benchmark.