emerging market debt - "climbing the wall of worry".

the outlook for emerging markets is positive

Growth is picking up and fundamentals in many emerging markets are improving.

some key risks have faded

In particular, the Trump administration has watered down or dropped the headline-grabbing policies that threatened global trade flows.

valuations are attractive

The strengthening position is still not priced into most emerging markets and local currencies remain significantly below their fair value.

why consider emerging market debt now?

We believe that emerging markets are on solid footing and that current market valuations provide a substantial cushion against risks such as an unexpectedly abrupt tightening of monetary policy in the US.

That said, emerging markets are a collection of very diverse economies; it follows that the impact of various risk scenarios will vary significantly from country to country. For us this means the approach to investing in the asset class has never been more critical.

Constructing a portfolio according to fundamentals rather than market cap can help to focus on quality issuers while reducing the reliance on trading. This latter point is especially important given the impaired liquidity environment.

watch our video.

webinar

Webinar with Salman Ahmed, Chief Investment Strategist: "Emerging market debt - why now is the right time?"

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related.

Salman Ahmed on Asset TV Emerging market debt | Masterclass
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