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All Developed Market articles
Despite recent market turbulence, the longer-term outlook for emerging markets looks optimistic, underpinned by rising dispersion, attractive valuations and improving fundamentals. The low-risk style is well-positioned in the current environment.
Net Zero and the Enhanced Approach to EM
We sought to determine whether investors can address their Net Zero objectives without sacrificing the risk and return characteristics of an Enhanced, or low-risk active, approach in emerging markets equities. By utilising the natural active risk within the Enhanced framework, we were able to integrate climate objectives with only a marginal change in the overall tracking error relative to the benchmark.
As much of the global economy climbs out of the pandemic-induced downturn, investors are scrutinising every new economic data point for clues to the outlook for growth and inflation. I think they should also take the 30,000-foot view afforded by financial cycles, which can offer a long-term perspective on the trajectory of an economy.