Client investments in emerging market currencies, equities and sovereign bonds have been hit by greenback’s unexpected rebound .
The Neuberger Berman Emerging Market Debt Local Currency Fund has reduced currency and duration risk in the portfolio following underperformance against the benchmark over the last quarter.
There is a clear opportunity to buy emerging market assets whenever risk averse events are triggered in the developed markets, and current worries over US trade policy and rate hikes could signal the latest entry point, says Ashmore’s Jan Dehn.
The Ucits fund will seek to invest in liquid government securities and investment grade corporate bonds in the mainland Chinese bond market issued in renminbi.
To navigate the hazards of the bond markets, one fund manager looks to US and emerging market debt for value while a fund selector finds opportunity in alternative fixed income.
Sentiment towards emerging markets has turned more positive. Raheel Altaf discusses the reasons behind the shift.
It’s been a rough ride for emerging market debt this year but despite rising rates and surging volatility targeted exposure to certain markets may still be able to reap attractive rewards.
Emerging market fundamentals remain robust in the opinion of many European fund buyers who say a market correction has increased the appeal of the asset class, according to Last Word Research.
The end of the QE-led economic cycle means investors may need a more diversified portfolio – with defensive equities such as healthcare, commodities and short-term high-yield bonds – to ensure outperformance as we enter a period of greater uncertainty, according to analysts at Denmark’s Saxo Bank.
Majority of institutional investors expect allocations to emerging market debt to increase over the next year despite concerns that rising interest rates could encourage outflows, according to poll.