Saudi Arabia’s record debt sale last week showed that emerging market bonds remain in strong demand with yield-hungry investors. However, the question is whether appetite could reverse as quickly as it has in the past.
Standard Life Investments’ Bambos Hambi has moved up to a neutral position in Asian and emerging market equities for the first time since 2010, when his MyFolio range was launched.
Consensus suggests it is a struggle to find value in equities, but despite political uncertainty in the UK, US and Europe, there are still plenty of opportunities globally
Underestimating long-term reform efforts are more likely to scupper growth prospects in Asia than the US election or the triggering of Article 50, says Sharat Shroff of Matthews Asia.
Emerging markets specialist Ashmore has reported a $6.3bn fall in assets under management and 18% decline in net revenues.
Franklin Templeton’s investment teams have adopted a defensive, “buckle-up” attitude to counter populist fervour in developed markets, but remain encouraged by the resilience and relative political stability of emerging markets.
While bonds have become the new stocks for many investors, ‘Taper Tantrum II’ remains a real threat for asset markets this autumn, warned Bank of America Merrill Lynch ahead of Fed chair Janet Yellen’s Jackson Hole speech today.
Emerging market bonds have undergone a remarkably quick transformation from one of the least loved asset classes to perhaps the most popular. This has been driven by the relative attractiveness of emerging market debt compared to developed market fixed income, but to what extent have the fundamentals of the asset class actually improved?
There are still opportunities to be found in United Kingdom financials according to Jupiter’s Guy de Blonay, and he favours insurance companies over the big UK banks in the current ‘lower for longer’ scenario.
BlackRock has joined the ongoing shift into emerging markets by upgrading the asset class to overweight in its asset allocation outlook.
Emerging market currencies are set to strengthen even further despite the significant appreciation from lows already seen this year, said NN Investment Partners.
In August 2015, emerging market equities were in the midst of the most serious market correction since 2008. A year on, investors are more bullish than ever about the asset class. Is this radical change of mood justified?
