Perspectives Blog

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 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 The amount of money withdrawn from gold ETFs ove…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….

Could tapering be good for stocks?

Fred Copper, Senior Portfolio Manager | December 16, 2013

…rate at which they are buying government and mortgage securities, interest rates around the world rose and stock markets fell, with the biggest pain being felt in those emerging markets most reliant on foreign capital flows as money quickly fled those markets (stocks, bonds and currencies were all dramatically impacted). When, in seeming response to this market riot, the Fed ultimately didn’t taper, stock markets rallied and interest rates declin…

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…

Finding opportunity in Chinese reforms

Robert McConnaughey, Director of Global Research | June 16, 2014

…ne such market where we feel like the likelihood of a positive reform cycle is potentially underestimated by the markets. Exhibit 1: Forward P/E and corporate governance scores in emerging markets Sources: WEF, Thomson Datastream, MSCI, UBS That said, as with many issues, the most exciting, under-discovered investment opportunities are often found at a more granular level. I came away from the week in China thinking that corporate level governan…