In the year of the dog shares of companies based on the Chinese mainland are set to emerge as leaders of the pack for investors in China as the world’s second largest economy enters the MSCI Emerging Markets Index in May. But European investors have already begun to move.
Despite concerns about heightened political volatility, 2017 proved a strong year for funds investing in Europe with no funds in the IA Europe ex UK sector losing money.
The higher a country’s ESG rating, the better its government bonds perform, MSCI has found.
China was the best performing country last month for equity investors, while momentum beat other factors like quality, index provider MSCI has reported.
Wealth and asset managers give their views on the implications of the MSCI inclusion of Chinese A-shares and reveal where they find investment opportunities onshore.
Saudi Arabia has taken a big step towards being classified as an emerging market after the MSCI added the Gulf state to its watchlist for potential upgrade on Tuesday, with the Saudi royal family making an unprecedented succession change a day later.
Largely within expectations, the MSCI will add Chinese A-shares to its emerging markets indices starting in May next year – a symbolic rather than impactful move in the short run.
With a string of countries having been promoted from frontier markets to emerging market status by index provider MSCI in recent years, investors need to ask themselves the question: are frontier markets still a viable asset class? And if they aren’t, is that actually a problem?
With more of a shudder than a surge, Pakistan formally returned to the MSCI emerging markets index on Wednesday after nine years as a frontier market, a day after foreign investors sold up in the biggest net outflow since July 2013.
Some sustainable index trackers have outperformed their plain vanilla peers since they were established a few years ago, while others haven’t.