united kingdomen
Signs of stabilization in emerging markets

Signs of stabilization in emerging markets

10-05-2016 | Insight

Last year was a perfect storm for Emerging Markets: concerns about China amid slowing growth, volatile domestic equity markets and the removal of the currency peg to the US dollar, along with weak commodity prices, the Fed hike and its impact on local currency depreciation all took their toll. The result was the largest outflow from emerging equity markets since 2008. All countries of the MSCI Emerging Markets index, with the exception of Hungary and Russia, underperformed Developed Markets in 2015.

  • Fabiana Fedeli
    Fabiana
    Fedeli
    Global Head of Fundamental Equities, Portfolio Manager Emerging Markets
The good news is that much of the storm seems to have passed, and we are seeing some signs of stabilization. Emerging Market currencies have stopped their slide versus the US dollar. In China, capital outflows have eased, and so has currency pressure on the yuan. Trade flows appear to have bottomed out, and the net profit margin gap between emerging and developed markets has stabilized. Subsequently, Emerging Market equities flows are showing improvements.
 
For a full appraisal of how the Robeco Emerging Markets Equities team now views the asset class, read the full article.
Subjects related to this article are:

Disclaimer

Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website.

The information contained in the Website is NOT FOR RETAIL CLIENTS - The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorized to receive such information under any other applicable laws. The value of the investments may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.

In the UK, Robeco Institutional Asset Management B.V. (“ROBECO”) only markets its funds to institutional clients and professional investors. Private investors seeking information about ROBECO should visit our corporate website www.robeco.com or contact their financial adviser. ROBECO will not be liable for any damages or losses suffered by private investors accessing these areas.

In the UK, ROBECO Funds has marketing approval for the funds listed on this website, all of which are UCITS funds. ROBECO is authorized by the AFM and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.

Many of the protections provided by the United Kingdom regulatory framework may not apply to investments in ROBECO Funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. No representation, warranty or undertaking is given as to the accuracy or completeness of the information on this website.

If you are not an institutional client or professional investor you should therefore not proceed. By proceeding please note that we will be treating you as a professional client for regulatory purposes and you agree to be bound by our terms and conditions.

If you do not accept these terms and conditions, as well as the terms of use of the website, please do not continue to use or access any pages on this website.

I Disagree