Perspectives Blog

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

…op performing markets in the EM universe (and the world) this year in $ terms — India +7.69%, Indonesia +27.98%, Brazil +7.9%, South Africa +5.82% and Turkey +14,53%. We recently noted that election cycles can create opportunities amidst pervasive pessimism as newly elected governments normally have a window to push through much needed reform. Polls in India, Indonesia and Brazil have shown pro-reform candidates (or in Brazil’s case anyone but th…

Opportunities in global infrastructure

Peter Santoro, Senior Portfolio Manager | February 3, 2014

…te the size and focus of the global demand for infrastructure, let’s examine some examples of spending trends in Brazil, China, India and the United States. Brazil • In August 2012, the government said it would spend $69 billion by the end of 2014 to improve its transportation systems. • The infrastructure spending for the 2014 World Cup and for the 2016 Olympics in Rio is projected to be around $50 billion. China • Out of 662 cities in China, mo…

From tactical to core – The case for emerging market debt

Columbia Management, Investment Team | June 2, 2014

For many investors, emerging market debt could be viewed as a core-portfolio holding rather than a short-term tactical investment. 2013’s re-pricing created value in terms of higher yields, a more dedicated investor base and a better relative value argument. Flexibility across the full spectrum of EMD investment opportunities is extremely important, as emerging markets are not homogenous. By Patrick McConnell, Director, Fixed Income Product Ma…

Comments on the effect on global markets from the Ukraine crisis

Mark Burgess, Chief Investment Officer, Threadneedle Investments | March 12, 2014

To date, the fallout from the Ukrainian crisis has been largely confined to the emerging market debt, emerging market equity and commodity markets. At current levels, emerging market local currency debt appears to offer value, although we expect both the hard and local currency markets to remain volatile in the short term. Emerging equities reflect concerns not only around Russia and Ukraine but also the weaker growth outlook in Brazil and China…

Not all emerging markets are created equal

Robert McConnaughey, Director of Global Research | January 27, 2014

We see emerging markets shifting from an environment of common thematic tailwinds to one of more idiosyncratic outcomes We believe that painting all emerging markets with a broad brush is a mistake We examine some of the key factors in uncovering EM investment opportunities Emerging markets (EM) is a term given to a universe of countries that is extremely diverse across a wide number of variables including geography, levels of industrializatio…

Gut check: The outlook on fixed income

Colin J. Lundgren, CFA, Head of U.S. Fixed Income | February 24, 2014

The next big move in rates may be triggered by concerns about possible future Fed rate hikes. High-quality bonds may struggle to generate coupon-like returns. Emerging markets may ultimately benefit from the synchronized uptick in growth in global developed markets. With nearly two months of the year behind us, we thought now would be a good time to see how the fixed-income market is faring in 2014 and assess our outlook. We asked our investme…