Many investors believe, as we do, that emerging markets offer a more compelling long-term growth story than do developed markets, and that portfolios should be tilted toward such regions to participate in this growth. However, before committing more funds to the area, investors should first re-evaluate how they allocate their exposure. While most allocations currently…
Allocations to emerging markets bond funds make sense from a strategic perspective, but the opportunity set offered by this evolving market is not static.
Stretched valuations and macroeconomic uncertainty leave emerging markets equities vulnerable.
Investors in emerging markets cash funds have historically enjoyed a smooth ride given high local interest rates; those investing in today’s low-rate environment will depend more on currency appreciation.
Over the last six years the Chinese private equity market has grown and matured considerably. This paper reviews the private equity landscape in China, discusses the evolution of investment structures, and evaluates the case for private equity investing in China.
The Middle East and North Africa (MENA) region is moving quickly to establish itself as an attractive segment of the global private equity market. This paper provides an overview of the MENA region, the macroeconomic and business landscape, and the landscape for private equity investing.
Provides investors with a background of hedge funds in the region as well as their current performance. A key question for investors considering an allocation to Latin America is whether hedge fund strategies constitute a better option than long only and/or offer a differentiated return stream. At this time, we consider Latin American hedge funds…
The near-term outlook for emerging markets equities is not very compelling; should shares continue to fall sharply, investors will need to reassess their desired tactical allocation.
While the long-term case for emerging markets equities remains intact, now is not the time to overweight emerging markets equities as soaring valuations and a blind faith in “decoupling” leave them quite vulnerable in the near term.
Contrary to popular belief, aggregate yields on local currency emerging markets debt do not offer a premium to US$-denominated debt on a currency-adjusted basis; however, given the breadth and relative inefficiency of the local currency market, we continue to believe active managers should be able to add value.