How important is the macro thesis on EMs?

How important is the macro thesis on EMs?

Matthew Tillett, director and UK equities portfolio manager at Allianz Global Investors, argues fundamentals suggest a very different picture for the region.

"How do you incorporate 'macro' into your investment process?" is a question I am often asked. The easy response is to say ignore the macro completely, focus only on the pure fundamentals of the businesses you are invested in. But the truth is more nuanced than this. In reality, it is quite difficult to invest without expressing some sort of limited macro view, whether explicit or implicit. Macro intrigues me because often it can become very consensual. The herd mentality is strong when everyone sees the same headlines day in day out. This can cause positioning to become one sided, po...