This content is from: Innovation
How to Achieve Precision Exposure to Emerging Markets
Significant structural differences between countries are reflected in their equity markets.
Among the building blocks of emerging markets (EM) exposures, country choice has been the primary source of risk. There are several idiosyncrasies to factor in when building and optimising EM portfolios, and country choice is an especially prominent right now given the political dynamics between the U.S. and China. First, it is important to note that within the EM block, there are significant structural differences between countries which are reflected in their equity markets. One indicative difference is varying levels of sensitivity to external market factors, such as the sensitivity of several EMs to the movements of developed markets (DMs) and the oil price sensitivity relative to EMs overall.
See the case studies by MSCI that demonstrate how to allocate more precisely to EMs
This article is for informative purposes only and should not be taken as investment advice. The opinions expressed by Fotios Kassianidis are his own, as at October 2019, and do not necessarily reflect the views of Lyxor International Asset Management or Societe Generale. Statements relating to past performance are not a reliable indicator of future results. Capital at risk. Please read our Risk Warning below.
FOR PROFESSIONAL CLIENTS ONLY. CAPITAL AT RISK.
This communication is for the exclusive use of investors acting on their own account and categorised either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets in Financial Instruments Directive 2014/65/EU. These products comply with the UCITS Directive (2009/65/EC). Société Générale and Lyxor International Asset Management (LIAM) recommend that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID are available free of charge on www.lyxoretf.com, and upon request to email@example.com.
Except for the United-Kingdom, where this communication is issued in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658, this communication is issued by Lyxor International Asset Management (LIAM), a French management company authorized by the Autorité des marchés financiers and placed under the regulations of the UCITS (2014/91/EU) and AIFM (2011/61/EU) Directives. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority).
The MSCI data contained in this article is the property of MSCI Inc. and/or its affiliates (collectively, “MSCI”). MSCI and its information providers make no warranties with respect to any such data. The MSCI data contained herein is used under license and may not be further used, distributed or disseminated without the express written consent of MSCI. MSCI does not issue, sponsor, endorse, market, offer, review or otherwise express any opinion regarding any fund, ETF, derivative or other security.