Frontier market funds lead emerging markets pack
Frontier market funds are leading Europe’s emerging market fund pack with Charlemagne’s frontier market offering at the top, according to FE Analytics.
Frontier market funds are leading Europe’s emerging market fund pack with Charlemagne’s frontier market offering at the top, according to FE Analytics.
Bonds have been an unloved asset class of late as investors’ mad scramble for yield has pushed the cost to unpalatable highs and they sought safety in cash, but does an impeding equity market correction mean that is set to change?
The record run of flows into emerging market debt is continuing, but is losing pace as investors are taking profits against a backdrop of rising US rates and some geopolitical issues.
With most global fixed income markets priced for perfection, investors are flocking to the one yield hold-out left: emerging market debt. But are investors really being compensated for the risk?
It has been a consensus trade for yield hunters this year: buying emerging market debt. A net €54bn has already flown into the asset class this year. This contrasts with recent outflows from high-yield bond funds.
Emerging market debt has been the best-selling asset class with European investors this year. But flows turned negative in late September against a backdrop of a hawkish Fed and a strengthening dollar.
One-stop shop funds that take away responsibility for asset allocation have continued to be the blockbuster sellers with European investors. But which other asset classes have actually seen the strongest inflows over the past three years? The answer may surprise you.
Emerging market bonds have been on a strong run this year, and Europe’s investors think the rally isn’t over yet.
Has the run into emerging market bonds only just started, or have flows already reached saturation point? And what does that mean for the outlook for the asset class?
Emerging market debt was the best-selling asset class with European investors for the fourth consecutive month in April, according to Morningstar fund flows.
Guillermo Osses, head of emerging market debt at Man GLG, reveals where he see the best return opportunities. But he also issues a warning.
European investors did in April what could, or perhaps even should, be expected from them: they sold US equities and bought the assets they said they would.