Emerging market and high yield credit should offer opportunities, according to the asset manager.
As interest rates fall or go negative, Aberdeen Standard Investments is testing the water in Singapore with a high risk fund that yields 5.8%.
When investing in emerging markets equities, a more logical yet easier way to seek returns is focus on stable leaders rather than ‘dark horses’, argued Thomas Schaffner, portfolio manager at Vontobel Asset Management.
Emerging markets are less likely to see a ‘taper tantrum’-like sell off as rates rise, said GSAM’s Shoqat Bunglawala, but not everyone agrees.
FSA compares two emerging market equity products: the AB Emerging Markets Growth Portfolio and the JP Morgan Emerging Markets Equity Fund.
The firm has launched a multi-asset income fund and has high expectations for emerging Asia equities over the next five years.
The macro drivers for EM equities are largely unaffected and the firm maintains its overweight.
It’s not only essential for life, but also for expansion of industries and economies, according to Simon Gottelier, senior investment manager at Pictet Asset Management.
Slowing EM economies and local currency devaluations are raising the risk of holding corporate debt, particularly China issuance.
Portfolio managers see a compelling case for investment in emerging markets because listed companies are trading at a steep discount to those in developed markets.