ING IM’s Marco Ruijer, who runs the ING EM Debt Hard Currency fund along with a Frontier Markets debt fund, has recently told Citywire Global that a Chinese growth slowdown and US monetary policy are the biggest risk factors for frontier markets. He commented:
“Every year China is slowing. It has gone from 10% GDP growth down to 7% and it may go to 5%, but it is all about risk sentiment. The only real worry there is in parts of the real estate and financials sector, but 6% overall growth is okay, and will never be achieved again by most western countries.”
In addition:
“ECB action is more important than the BoJ, but much less important than the Fed. If the US looks stronger in Q2 and treasuries start moving in Q2, we could see a bit of profit taking in emerging markets, which would not hurt.”
Despite his long term optimism, Ruijer is braced for the next emerging market country crisis to hit investor sentiment again, and he is wary of Venezuela at present. He is also avoiding both Dubai and Kuwait, as he believes their valuations are too rich, but he has been adding to Kazakhstan, which has been sold off due to its proximity to Russia and the ongoing Ukraine crisis.
To read the whole article, ING IM’s Ruijer: China and the Fed biggest risks to frontier markets, go to the website of Citywire Global.
Similar Posts:
- How MSCI’s Removal of Qatar & UAE Impacts the Frontier Markets Landscape (MM)
- S&W’s McGrath: Emerging Markets Are at the Perfect Entry Point (FE Trustnet)
- 2017 Global Retail Development Index (ATKearney)
- How the MSCI Emerging Markets Index Changes Will Impact Investors (P&I)
- Emerging Markets vs Japan: Which Offers the Most Value? (Citywire)
- Analysts Favor Currencies Like the Mexican Peso, Won and Zloty (WSJ)
- Henderson’s Bennett: “No Real Emerging Europe, We Have Got Submerging Europe” (Citywire)
- Frontier Market ETFs Have 72% Exposure to Oil-Dependent Countries (FT Adviser)
- Which Emerging Markets Have the Most Leveraged Stocks? (Bloomberg)
- The “Halo Effect” of Saudi Arabia’s Emerging Markets Arrival (Franklin Templeton)
- Russia, Kazakhstan and China are Buying Gold (The Diplomat)
- New Fragile Five Facing a Forex Crisis: Argentina, Brazil, South Africa, Ukraine & Venezuela (Institutional Investor)
- Fund Managers’ Opinions on the UAE and Qatar’s Emerging Markets Upgrade (The National)
- Emerging Market Companies & Governments Binge on US Dollar Debt (WSJ)
- Mark Mobius’s Favorite Emerging Markets: Indonesia, Russia, Brazil, Vietnam and South Africa (WSJ)
