Ninety One

There’s been good times and bad times for the EM set, but they’ve exited Covid monetary settings well ahead of their developed market peers and their debt is back en vogue.

The EM story of economic growth and portfolio diversification should work in theory – but what’s worked in practice has been altogether different. Still, gloom around China obscures the many bright spots in a diverse market.

The peak in interest rates and inflation has been supportive of markets, but there’s still plenty of turbulence ahead and investors should be wary of chasing stocks higher.

The use of climate-related investment practices is seeing a sharp fall among the global institutional investor set, while more than half of them are worried about achieving the best returns while delivering emissions reductions targets.

The aggressive sell off in US bonds has prompted many to speculate that interest rates have adjusted upwards on a structural basis. But Ninety One investment strategist Russell Silbertson takes a different view.

China still offers a compelling long-term investment story for investors willing to look past short-term headwinds in property and politics, according to Ninety One.

The bias towards investing in domestic securities and the complexity of the local benchmarks mean the impact investing conversation is “very advanced” Down Under, according to global asset manager Ninety One.

Ongoing tightness in the US labour market, together with stickier than anticipated inflation, could counteract any softening of monetary policy by the Fed and lead to a bumpy economic path according to Ninety One’s Iain Cunningham.

This downturn will be different, according to Ninety One. But the world is so indebted that there’s either the mother of all paybacks coming, or the mother of all defaults.

Emerging markets are no longer the backwaters of the global economy, but their corporate debt is a multi-trillion-dollar market that’s gone almost untapped by institutional investors.