Perspectives Blog

Asia’s emerging markets – Room to run

Dara White, Senior Portfolio Manager | November 10, 2014

As emerging markets investors, we like Asia because of its strong reform momentum and the depth of its stock market. Rising interest rates will be good for exports and Asia’s earnings story. Valuations, inflation rates and current accounts are at levels close to where they were from 2001 to 2005, the best period for emerging markets. Excerpted from Barron’s November 3, 2014 cover story in which Dara White and three other EM experts discuss opp…

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…

Emerging market equities — Still a world of opportunity

Georgina Hellyer, Fund Manager | December 1, 2014

Despite a disappointing last five years, the structural growth drivers that have long made emerging markets an attractive area in which to invest are as compelling as ever. While emerging markets may be a single asset class, they are anything but homogenous. This provides opportunity for active investors to seek out higher returns. There are an increasing number of world-class companies to choose from, with capable management, healthy balance s…

Emerging Markets: Waiting on exports

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | March 31, 2014

Exports by emerging market economies are the most important factor in explaining long-term growth. EM exports have remained sluggish for the past three years due in part to the subpar nature of global growth. As emerging markets struggle to overcome the challenges to their growth story, the EM landscape will likely face significant challenges ahead. Equity markets in the developed world did very well in 2013 while the picture was far more mixe…

Special report – Commodity markets outlook

Columbia Management, Investment Team | July 21, 2014

…n currency risk are less concerned about buying the U.S. dollar than was the case. This is certainly true of the emerging markets. Just a few years ago central banks in emerging markets were buying gold as a diversifier. However, in the past year or so emerging market central banks have focused on addressing domestic problems and have required dollars, rather than gold, to support their currencies. The amount of money withdrawn from gold ETFs ove…

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

Despite continuing headlines of concern, EM markets have rebounded recently. In order to sustain that rally, we need to see progress on export volumes and political/economic reforms. While not universally cheap, EM equity valuations are not unreasonable and we continue to find bottom-up opportunities. A month ago, much of the news from the emerging markets (EM) was negative. We saw headlines highlighting the liquidity headwinds created by U.S….

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…