Subscribers

Rotation from bonds to equities lifts EM stocks

Developing markets are now a draw as currencies recover from energy slump.

Natasha Doff

Published Wed, Dec 14, 2016 · 5:50 am
Equity markets such as Russia have the added attraction of giving investors exposure to currencies that are rebounding from a slump in energy prices. Investors poured US$1.12 billion into passive funds that track EM stocks last week, while pulling US$91 million from bond exchange-traded funds.

Emerging Markets

London

THE world's riskiest stock markets are being swept up in the great rotation from bonds to equities.

The prospect of the fastest economic growth in the developing world since 2013 is luring global investors back into emerging-market equities. Schroder Investment Management Ltd has built up a 6 per cent holding across its US$114 billion multi-asset portfolio this year after being absent from the asset class for half a decade. BlackRock Inc and ABN Amro Bank are also buyers.

While most of the US$2...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes

Wealth & Investing

At 5% yields, investors find it’s worth paying for actively managed bond funds again

A more reliable way to get enough investment returns

Inflation, interest rates and oil prices have jolted the markets

Picking stocks is a losers’ game

Rethink assumptions about next-generation wealth

Caught up in crypto fever? Heed lessons from 2022

Breaking News

Most Popular