Many emerging market economies have strengthened, putting them on firmer footing for future growth. We believe valuations remain attractive but this asset class needs careful handling: investors should look for a quality-focused approach with risk mitigation...
Currency also a big risk
Short duration bond fund
Proposed changes to monetary policy
Which currencies should EMD investors hold in their portfolios?
Emerging market bonds generated decent performance in the first half of 2017, rallying well after weakening towards the end of last year on the US election result.
Brazil is a good illustration of why many investors remain wary of emerging market debt (EMD), despite the serious attractions of the asset class.
AUM up by $2.8bn during quarter
Now tracking JP Morgan indices
Weekly outflows of €759m
'Sell in May and come back on St. Leger’s Day'
Favours EMD to mitigate rising rates
Reforms not enough
TER of 0.47%
Inflows of $2bn
Current institute predicts three to four more hikes in 2017
Almost a decade after the global financial crisis, investors continue to contend with slow global economic growth.
Low- and high-risk parts of market under pressure
Joined firm in December for launch
Reporting to Colm McDonagh
EMs on a 'whopping' 30% discount
There are attractive investment opportunities among high-yielding emerging market (EM) eurobonds in our view, writes Koon Chow, an EM macro and FX strategist at Union Bancaire Privée (UBP).
Follows US election result
Taking a long-term view