The FSA Spy market buzz – 13 December 2024
M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.
HEAD-TO-HEAD: Ashmore vs Templeton
FSA compares two global emerging market bond funds: the Ashmore Sicav Emerging Markets Total Return Fund and the Templeton Emerging Markets Bond Fund.
Asia’s investors have been under-allocated to global emerging market debt, but the higher yield has sparked interest, according to Roger Bacon, Citi Private Bank’s head of investments for Asia-Pacific.
“This is an asset class that high net worth clients in Asia have not historically been allocating to, and we made a big call [to offer the asset class] at the beginning of [2016].”
He continues to see large allocations to EM debt, especially since performance has been strong in 2016 and this year.
Generally, industry researchers are positive on the asset class in 2018.
For example, Latin American bonds can be an attractive source of yield in the low interest rate environment, according to Guilllermo Felices, senior market strategist at BNP Paribas Asset Management.
Garcia Zamora, leader of the emerging market debt team at Standish Mellon, a specialist asset management boutique under BNY Mellon, believes that emerging market local currency sovereign bonds are the best fixed income products.
“Their valuations are more attractive [and the exchange rate] context is very constructive. If the dollar goes down, emerging markets currencies will go up and the returns of local currency bonds in dollar or euro terms will be more attractive than those of hard currency bonds.”
Against this backdrop, Vanessa Broussard, London-based fund analyst at Allfunds Bank, compares two global emerging markets blended funds: the Ashmore Sicav Emerging Markets Total Return Fund and the Templeton Emerging Markets Bond Fund.
Related Stories
Promoted Content
-
How can a sustainable approach also ensure you don’t compromise performance?
-
Driving decarbonisation: how to access new forms of alpha
-
Nuveen broadens income sources via private capital and real assets
-
Step up your portfolio by doubling down on sectors set for long-term growth
-
Who’s afraid of higher interest rates?
-
Healthcare’s innovation shifts into high gear
-
Appetite for thematic investments grows amid rates and inflation concerns
-
An investment opportunity for the coming decades: the environment
-
Exciting opportunities in AI & Robotics outside of traditional tech
-
Thematic investment series: Innovative transformation cuts across “old” and “new” economy companies
