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Emerging Markets Spotlight

Emerging markets to avoid: the JOHCM Global Emerging Markets Opportunities team provide their top down analysis.

  • James Syme
  • Paul Wimborne
14 May 2020
View PDF   Download PDF  
View PDF   Download PDF  
  • Foreign investors have been aggressive sellers of emerging assets (in a subset of countries) while reduced trade volumes, lower commodities prices and a hard stop in tourism revenues have heavily reduced inflows of foreign exchange.
  • These outflow stresses will continue until a return of investor confidence leads to inflows; until then, we will remain cautious.
  • We currently have zero-weight positions in Argentina, Brazil, Chile, Saudi Arabia and Indonesia, and have reduced our South Africa and Turkey weightings.
     

Disclaimer

Past performance is no guarantee of future performance.
The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Investing in companies in emerging markets involves higher risk than investing in established economies or securities markets. Emerging Markets may have less stable legal and political systems, which could affect the safe-keeping or value of assets. The Fund’s investments include shares in small-cap companies and these tend to be traded less frequently and in lower volumes than larger companies making them potentially less liquid and more volatile. The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation.

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