Should investors consider disaggregating their emerging markets exposure?

EM not one group

clock • 3 min read
Harriet Ssentongo of Franklin Templeton
Image:

Harriet Ssentongo of Franklin Templeton

Strategists are often quick to group economies with an acronym or catch-all term but very rarely do the participants of those groups exhibit the same risk and return characteristics.

The war between Russia and Ukraine is yet another example of why emerging market countries should not be viewed as one homogenous group. More recently we have seen a trend of investors starting to disaggregate the individual country constituents of emerging markets and invest on a more nuanced country-by-country basis. Since Jim O'Neil created the term BRIC in 2001, the annualised returns of Brazil, Russia, India, and China have been 7.8%, -42%, 11.2% and 8.2% respectively. The differing drivers of performance and volatility for these markets over time has been clear. More recently...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
Offered to both institutional and retail investors, the portfolio is a new sub-fund of the Luxembourg UCITS Goldman Sachs Funds SICAV.

Goldman Sachs AM launches emerging markets ex-China equity fund

Benchmarked against MSCI ex-China index

clock 21 June 2022 • 1 min read
Four graphs explaining... Emerging market equities

Four graphs explaining... Emerging market equities

New series

Investment Week
clock 20 June 2022 • 3 min read
Trustpilot