Are emerging markets emerging from the turmoil?

lowenthal-stefan

Stefan Löwenthal

  • Chief Investment Officer — Global Multi Asset Team
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wurzer-juergen

Jürgen Wurzer

  • Deputy Head of Portfolio Management, Senior Investment Manager — Global Multi Asset Team
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kozhemiakin-alex

Alex Kozhemiakin

  • Managing Director, Head of Emerging Markets Debt
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wallach-gabriel

Gabriel Wallach

  • Vice President, Portfolio Manager
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On the surface, emerging markets have recently been a story of volatility and significant challenges, particularly following a tumultuous 2018 that was marked by trade tensions and the effects of a strong US dollar and rising rates. But on another level, emerging markets tell a complex tale of evolution in response to these pivotal forces. “Are emerging markets emerging from the turmoil?” is a roundtable discussion in which Macquarie portfolio managers, who specialize in this asset class, share insights on the transformation of emerging markets.

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IMPORTANT RISK CONSIDERATIONS

The views expressed represent the Manager's assessment of the market environment as of April 2019, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Views are subject to change without notice and may not reflect the Manager's views.

Past performance does not guarantee future results.

Diversification may not protect against market risk.

International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. Fixed income securities may also be subject to prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity, at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.

Currency risk is the risk that fluctuations in exchange rates between the US dollar and foreign currencies and between various foreign currencies may cause the value of investments to decline.