Emerging Markets Have a Place in the Portfolio

Over the last five years, investors in emerging markets mutual funds have paid plenty and gotten little in return.

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Emerging Markets’ Challenge to Silicon Valley

Silicon Valley leads the global technology innovation markets with the credentials and an ecosystem that is second to none. We have had contact with many of the leading technology accelerators operating out of Silicon Valley, and their opening line for the conversation is often: “How are you relevant to us?”

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Brexit Effect Ripples Through Emerging Markets

Britain’s vote to leave the European Union continued to hurt emerging markets on Monday, sending currencies and stocks falling from Mexico to Poland as investors fled riskier assets.  The declines highlight how Brexit is causing ripple effects across the world, raising uncertainty about global growth and pushing investors into assets they see as safe, such as the U.S. dollar. The dollar’s gains then feed back into concerns about emerging markets, making their greenback-denominated debt and the commodities they sell more expensive.

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India Outshines Emerging Markets

Since Raghuram Rajan took over as RBI governor on September 4, 2013, Indian equities have been the best performer among all emerging markets. 

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Emerging Markets Led Overall Market Performance

Global equity markets, represented by the MSCI AC World Index, closed with a gain of 0.62 per cent for the week ended June 3, 2016.  As a whole, emerging markets outperformed developed markets as the MSCI Emerging Markets and the MSCI Asia ex Japan indices closed with larger gains of 1.37 per cent and 1.28 per cent respectively.  Among developed markets, Japan emerged as the best performer, with the Nikkei 225 index closing 2.21 per cent higher.  The US, represented by the S&P 500 Index, registered a gain of 0.39 per cent while the Stoxx 600 Index ended the week 0.34 per cent lower.

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What Is an Emerging Market?

In April this year, the World Bank released its 2016 edition of World Development Indicators, and for the first time, it stopped classifying countries as "developing" and "developed." According to the organization, the distinction was no longer relevant, as it aims to use a set of sustainable development goals that can be applied to all countries.

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Citigroup Says Saudi Is Best Emerging Market for Deals

Saudi Arabia’s planned privatizations, including a share sale in the world’s biggest oil company, represent the biggest investment banking opportunity in emerging markets, according to Citigroup Inc.  Implementation of the kingdom’s plans to restructure the economy -- known as Vision 2030 -- "could translate into a fantastic wallet for the investment banks," Omar Iqtidar, Citigroup’s head of investment banking in the Middle East, said in an interview in Dubai. "We are seeing momentum picking up, with skeptics increasingly converted into believers of the restructuring," he said.

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Fledging Emerging Market Reprieve Ends as Fed Hawks Take Wing

The brief reprieve in emerging markets is over, cancelled out by a sharp reminder from the US that nobody should be betting on low rates to last for ever.  As markets absorbed the US Federal Reserve’s April meeting minutes published last week and realised that a summer rate rise was back on the table, a “risk-off” trade took hold that pushed the dollar up and sent commodity and equity prices down.

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Is Now the Time to Buy Emerging Markets?

Andrew Swan, head of Asian equities and portfolio manager at BlackRock Asset Management, discusses emerging markets, currencies in Asia and his outlook for China. He speaks to Bloomberg's Yvonne Man on "Asia Edge."

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Emerging Markets Says Oil Prices to Rebound to $60

The emerging-market investment pioneer Mark Mobius said he expects oil prices to rebound to US$60 a barrel by the end of the year as the supply of crude shrinks, giving a measure of relief to major oil producers like the UAE and other Arabian Gulf nations. Oil prices have shot up by almost 20 per cent in the last three months since declining by as much as 70 per cent since mid-2014.

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