EM Fund Stock Picks & Country Commentaries (August 18, 2024)
China's Nike + sports industry, China’s econ challenges (cyclical/structural?), Latin America's long term potential, untapped FM opportunities, Vietnam’s resilient stock market, July fund updates, etc
As of mid-August, more July updates have become available along with new research:
🔬 The Man Institute has this paper: Into the Spotlight: The Case for EMD in Insurance Portfolios - As the insurance market grows, insurers are also seeking novel ways to meet liabilities with a yield kick on top. In Part I of this paper, we explore if emerging market hard-currency debt can be part of the solution.
🔬 PineBridge Investments has this piece: 2024 Midyear Emerging Market Debt Outlook: EM Economies Flip the Script
We expect continued support for EM debt in the second half of 2024, with a favorable economic outlook for EM relative to developed markets and normalization of rates in the US and Europe boosting the flow of capital to higher-yielding international assets.
These factors support an ongoing secular shift in perceptions of the asset class, with more investors now taking a longer-term strategic view of the asset class as a core fixed income allocation, rather than simply a tactical play.
Valuations across fixed income markets are tight, with prices discounting potential risk outcomes as carry trades look increasingly crowded. We think a reassessment of EM risk premia is in order given the segment’s faster growth, declining inflation, and more stable governmental institutions and political processes.
The following funds or fund managers have new factsheets, commentaries, research pieces, podcasts or webinars that would interest investors in Asia:
🔬🌏 FTSE Russell has this detailed quarterly report covering major APAC markets: APAC Financial Markets Spotlight – August 2024 - This report, published quarterly, delves into the major macroeconomic, fixed income, equity and FX market events shaping the APAC financial markets, leveraging our exclusive databases and platforms such as FTSE Russell indices across asset classes, LSEG Workspace, Lipper fund flows and many more.
🎙️🌏 Asia Frontier Capital’s Ruchir Desai recently appeared on Money Talk: View from Frontier Markets (6:59 Minutes) - Ruchir Desai, Fund Manager at Asia Frontier Capital, says Bangladesh, Pakistan and Sri Lanka will be coming out of the macro crisis and their valuation is attractive for investors.