Views & News

Emerging Markets Spotlight

| Emerging Markets Equities
James Syme
12 Feb 2019
  • It has been our view for over a year that the G7 policy-driven slowdown in emerging economies would feed back into the developed world through weaker orders and revenues for EM-facing companies.
     
  • The more cyclical end of EM (predominantly Asian exporters) does contain some markets that are clearly already pricing in a sharp slowdown.
     
  • We remain substantially overweight India and Korea and continue to rotate the portfolio into more domestically-driven markets that can benefit from the Fed’s new-found caution.
     

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Past performance is no guarantee of future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Investing in companies in emerging markets involves higher risk than investing in established economies or securities markets. Emerging Markets may have less stable legal and political systems, which could affect the safe-keeping or value of assets. The Fund’s investments include shares in small-cap companies and these tend to be traded less frequently and in lower volumes than larger companies making them potentially less liquid and more volatile. The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation. Issued and approved in the UK by J O Hambro Capital Management Limited, which is authorised and regulated by the Financial Conduct Authority. JOHCM® is a registered trademark of J O Hambro Capital Management Ltd. J O Hambro® is a registered trademark of Barnham Broom Holdings Ltd. Registered in England and Wales under No: 2176004. Registered address: Level 3, 1 St James’s Market, London SW1Y 4AH, United Kingdom.

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