The markets of Emerging Europe, Middle East and Africa can be summed up in a few words, according to Camille Asmar, head of equity sales for Europe and Emerging Markets at HSBC: “Challenging, unexpected in some ways, and volatile.”
Geopolitical events, oil prices, and inflation across the region have been surprising, he said. Inflation is currently at the forefront of clients’ minds as they navigate challenging markets. “Energy markets and economics present many questions as well as opportunities for investors,” he added.
It has been a difficult year for investors in developed Europe as well, according to Dina Geha, global head of distribution at BNP Paribas Exane. “The largest investor pool — U.S. investors — continued to reduce their holdings in Europe,” she said. “Any hope that Europe might finally outperform was dashed by new fears of war, the energy crisis, persistent inflation and the realization that more earnings downgrades were inevitable. The lack of capital markets activity hasn’t helped either.”
Amidst this turbulent landscape, respondents to Institutional Investor’s recent sales team surveys have elevated their tried-and-true providers.