emerging markets investing: stick or twist?

Click here to load reader

Post on 18-Jan-2017

148 views

Category:

Economy & Finance

2 download

Embed Size (px)

TRANSCRIPT

  • EMERGINGMARKETSINVESTING:STICK OR TWIST?

  • This report is a timely look athow global institutionalinvestors are thinking about andpositioning their investments inemerging economies.

    These are the results of aglobal survey of seniorinvestment professionals.

  • 277 RESPONDENTS

    Demographic of report respondents

    32% CHIEFINVESTMENT OFFICER

    44% USA | 31% EUROPE

    PROPORTION OF FIRM'STOTAL AUM INVESTED INEMERGING MARKETS: 38%

  • OUR TOP TENFINDINGS

    China failing to hit it's 7%economic growth target is the

    macro-risk that is considered mostlikely to cause a sharp sell-off in

    emerging markets assets in 2016/17

    #1

  • OUR TOP TENFINDINGS

    Local currency equities,government and corporatebonds are expected to beimpacted most by risingrate volatility, particularlyamong the BRICS countries

    #2

  • OUR TOP TENFINDINGS Most respondents (36%)

    expect the combinedeconomic growth rate ofdeveloping economies in2016 to be flat to 4.3% in2015. 34% expect it to fall,

    while 29% expect thegrowth rate to rise.

    #3

  • OUR TOP TENFINDINGS

    India is the most preferred economy ofthe BRICS to invest in over the next 12-

    24 months, followed by China andSouth Africa. Russia is the least

    preferred, followed by Brazil.

    #4

  • OUR TOP TENFINDINGSWhile there is concern

    about the Chinese equitiessell-off, a higher proportion ofrespondents are concernedor very concerned about thegovernments's attempts totry and stem it.

    #5

  • OUR TOP TENFINDINGS

    #651% of respondents do not believeChina will overtake the US as theworld's largest overseas investor by2020. About 30% said it would.

  • OUR TOP TENFINDINGS

    #7 Most respondents(29%) believe that thesize of India's economywill not surpass China'sanytime soon. 23%said it would happen in 20 years.

  • OUR TOP TENFINDINGS

    #8Over the next 5-10 years,68% of respondents seeinvestment potential ofCuba, closely followed

    by Iran (66%).

  • OUR TOP TENFINDINGS

    #9Most respondents (67%) either agree orstrongly agree the the usual response ofselling emerging markets assets duringdeveloped market crises should be re-assessed by global asset managers.

  • OUR TOP TENFINDINGS

    #10Some 60% ofrespondents eitheragree or strongly agreethat developed marketrisks are under-pricedrelative to developingmarket risks.

  • Contact [email protected]_news

    emis.com

    +44 (0) 20 7779 8100