By: Merryn Somerset Webb 23/05/2019 After all, that’s where populations are growing; where the West’s manufacturing is migrating too; and where new middle classes are emerging. Right? Maybe. Or maybe not. The latest Barclays Equity Gilt Study suggests something rather different. Population growth is not much higher in emerging markets than in developed ones, for example, so the idea that demographics can drive growth in the latter but not the former holds no water. More importantly, however, technological progress is in the process of flipping from “supporting faster emerging-market growth through globalisation to undermining it”. Until recently it made sense to shift your manufacturing abroad: you could take advantage of cheap labour costs, but use technology to manage the complicated supply chains and logistical challenges that came with doing so.But if you are looking at things afresh today, it doesn’t make so much sense. Automation … [Read more...] about Should you invest in emerging markets right now?
Actively managed emerging market funds
By Avantika Chilkoti WSJ Fri., April 5, 2019 Norway’s $1 trillion sovereign-wealth fund is set to slash its holdings of emerging-market bonds, a move closely watched by other investors given the fund’s massive size. After a year of consultation, the Ministry of Finance said Friday that major emerging markets would be removed from the fund’s fixed-income benchmark, which covers both corporate and government debt. Among the emerging markets removed from the index are Chile, Mexico, Russia, South Korea and Thailand. The move, analysts said, reflects the rising correlation between bonds in emerging and developed markets, while the fund’s growing equities portfolio exposes the fund to emerging market currencies. There are significant transaction costs involved in holding emerging-market debt as part of the benchmark, finance ministry officials added. “You have some operational challenges with emerging-market bonds,” said Espen Erlandsen, … [Read more...] about Norway Cuts Emerging-Market Bonds From Its Sovereign-Wealth Fund
Mar 20, 10:26 PM EDT Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Opinion By Josiah Hernandez 03/20/19 AT 6:00 AM For the average citizen of a developed country, Bitcoin offers many advantages over fiat money. But for an average citizen in an emerging economy, Bitcoin represents more than an alternative to traditional finances: it is a new horizon of economic freedom.A massive market downturn of the digital asset from an all-time-high close to $20,00 in late 2017 has spawned waves of mainstream media coverage about an ecosystem plagued by scandal and excess.The 80 percent price drop has certainly cooled the Bitcoin frenzy as a speculative asset in rich countries. But beyond the headlines, interest remains strong in regions such as Latin America, sub-Saharan Africa, and Southeast Asia, where the benefits make a compelling case for adoption of digital money that has no central authority backing.This enthusiasm is evidenced by the solid … [Read more...] about Let’s Help Emerging Markets Show Bitcoin’s Value To The World
By Ira Iosebashvili WSJ Asjylyn Loder WSJ Julie Wernau WSJ Tues., March 5, 2019 Investors are pouring money into emerging markets at the fastest clip in a year, highlighting how many have regained their taste for risk just months after selling buffeted global indexes. Fueled by a cautious shift from the world’s central banks and easing fears over global trade, portfolio managers are snapping up everything from Chinese equities to the Chilean peso in a world-wide hunt for yield. Investors have piled around $86 billion into emerging markets stocks and bonds this year, more than in the last nine months of 2018 combined, data from the Institute of International Finance showed. That has helped boost the MSCI Emerging Markets Index nearly 13% from last year’s lows. The rush into the boom-and-bust asset class is the latest example of how investor tolerance for risk has shifted since the closing weeks of 2018, when many were worried that the … [Read more...] about Investors Embrace Risk in Emerging Markets
The amount of money flowing into Ashmore slowed significantly late last year after turmoil in emerging markets and rising US interest rates hit investor appetite for riskier ventures. The FTSE 250 fund manager, which specialises in emerging markets, said assets under management rose by just 0.4pc to $76.7bn (£59.7bn) over the three months to December as it attracted $500m of net inflows. The figures mark a significant slowdown compared to the same quarter a year earlier, when investors eager to take a punt on developing markets poured $3.6bn into the business. The quarter also represents a steep drop in activity compared with the previous three months, when Ashmore attracted $2bn of new money... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week … [Read more...] about Money slows into Ashmore as investors grow wary of emerging markets