You are here

Grappling with investor fears over rocky EM markets

The No 1 reason is that China's problems could weigh on EM growth rates.
Wednesday, January 27, 2016 - 05:50
BT_20160127_PIMCO_2087495.jpg
Pimco, once the world's largest manager of EM bonds, has seen industry-lagging returns from outsize bets in Brazil and Russia, propelling an investor exodus that is getting worse by the month.

CURRENCY turmoil in China and fears of a global slowdown have led investors to abandon emerging markets (EMs) in droves, rattling the large asset-management firms that have long promoted such investments in their hunt for higher returns.

For more than a decade, star managers at Franklin