Emerging Markets Outlook

Emerging Markets Outlook - Articles & White Papers

The Savvy Investor Emerging Markets (EM) section features articles and institutional white paper research from the leading global research providers and asset managers in the EM space.  

Emerging markets are countries or regions that exhibit newly developing economies compared to their more established global economic counterparts.  An emerging country or region will typically be in the early stages of building and developing its economy. This may be via the commencement of general construction projects or via significant upgrades of transport infrastructure.  As the economic prospects for the domestic economy improve, foreign capital flows and foreign investment will be attracted to the country.

As a result of this investment and the subsequent upskilling of the emerging market labour force, standards of living in the wider population will typically rise....

This helps to shift the economy from a primary industry bias, based upon agriculture or mining, to a balanced economy of secondary and tertiary sectors such as manufacturing and services for consumers and businesses.  

The pace at which an EM country will develop will be dependent upon a myriad of factors such as demographics and literacy and education standards.  Emerging countries’ future economic prospects will be enhanced by prudent government domestic policy, stability in domestic politics, evidence of a sufficiently capitalised banking system and a free-floating exchange rate.  Emerging market countries and regions that advocate human rights and can promote a legal system with sound structural integrity will be viewed more favourably by institutional investors.  

As well as providing white papers on the outlook for emerging markets, we will also link to research that addresses the educational and theoretical aspects of investing in EM

Emerging economies have historically been sensitive to changes in the value of their currency exchange rates versus the US dollar and thus the knock-on effects of US interest rates and associated policy can be a significant factor for institutional investors to consider before investing in the emerging world.  Periods of severe currency volatility or currency devaluations have typically seen institutional investors shun emerging markets and recent geopolitical events affecting the Turkish Lira or Chinese Yuan have underlined this risk.

EM investment research subjects covered on Savvy Investor include emerging equity markets, emerging market debt and fixed income, EM real estate and EM infrastructure.  Private equity and venture capital in the emerging markets will also be included. All investment areas will include USD based and local currency themes.

We will link to white paper research covering the following investment acronyms commonly associated with the emerging world:

•    BRICS - Brazil, Russia, India, China and South Africa
•    MINT - Mexico, Indonesia, Nigeria and Turkey
•    LATAM – Latin America covering Central and South America

Some of our linked research on Savvy Investor may include frontier markets, which are smaller and typically less well-developed than EM countries.

Recent popular thematic white papers include:

Structural Change in Emerging Markets: 4 Key Forces - Wellington Management

China's Debt Problem - Matthews Asia

How Does Factor-Based Investing Work in the China A Market? - S&P Dow Jones

A Study of Asset-Owner Priorities for ESG Investing in Asia - The Economist

Capturing the Asian century: tapping into Asia’s growth - Manulife

Shanghai, China

 

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