Views & News

Emerging Markets Spotlight

| Emerging Markets Equities
James Syme
16 Jan 2019
  • We believe that China remains a domestically-driven economy and growth in domestic demand (and, resultantly, economic growth) is substantially driven by the change in credit –which has been slowing since 2016.
  • We remain cautious on Chinese equities, cautious on commodities and commodity economies, and continue to expect disappointment from global companies that sell into China.
  • At some point, probably given the weakening renminbi, Chinese policy will turn more stimulative, but we believe it will pay to wait until that turn is tangible.
     

Disclaimer

RISK CONSIDERATIONS: The Fund invests in international and emerging markets. International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets. Such risks include new and rapidly changing political and economic structures, which may cause instability; underdeveloped securities markets; and higher likelihood of high levels of inflation, deflation or currency devaluations.  Emerging markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity
The small- and mid-cap companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger companies and may be more volatile; the price movements of the Fund's shares may reflect that volatility. 

The views expressed are those of the portfolio manager as of January 2019, are subject to change, and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice.

Data sourced from JOHCM/Bloomberg unless otherwise specified.
 

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