Investors love a good story, but the latest chapter of the emerging markets growth story has come as a nasty surprise to many. There may be much worse to come. Narratives can help to make sense of facts and figures. Stories can convey meaning, by joining up often unrelated information, and they offer hope. But […]
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Tag Archives: emerging markets
Should we worry about China?
May 29, 2015 
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Investors struggle with bubbles. Sure, we know they eventually burst, but lessons are quickly forgotten. Now China is a puzzle: it might look like a bubble, but what to do? Uncontrolled Yen devaluation could break China’s Renminbi peg and trigger more global deflation. But, timing and is hard to assess. Analysts and the press pay […]
Continue reading Risks are growing in big equity and bond funds
April 16, 2015 0 Comments
Money printing and the current stockmarket boom are increasing systemic risk, pushing problems into new areas. Now the questions is; are some asset managers too big to fail? The financial crisis highlighted risks in banks and insurance, but other areas have been overlooked. Finally, regulators are beginning to recognise risks in the investment sector, and […]
Continue reading Will China be sucked into the currency wars?
April 9, 2015 0 Comments
Currencies are fast becoming 2015’s big investment risk. A factor once largely ignored can now make or break performance. Already, sharp moves this year in the Swiss Franc and Euro have hit some funds hard. But, do investors get enough information from managers about the risks being run? Although many funds do not hedge, monthly […]
Continue reading The ethics of soft closure. Are emerging markets funds really closed?
March 12, 2014 0 Comments
The rout of emerging markets has exposed some serious ethical issues. As the crisis progresses, investors are still getting little more than soothing words from most managers. Much of this pays little heed to the change in outlook for the BRICs or the turmoil in emerging Europe. Few managers highlighted the risks in Ukraine, for […]
Continue reading Investors should prepare themselves and their assets; not predict
January 6, 2014 0 Comments
Making an annual review of portfolios is good practice for investors. Unfortunately, January may not be the best time for this. The rosy glow of last year’s performance has too much emotional appeal, and the background noise of pundits is distracting. It is tempting to project market gains for the year, or to pencil-in likely […]
Continue readingFacts not Emotion needed in Emerging Market Fund Reports
September 5, 2013 0 Comments
Investment reports are designed to update investors each month, yet are often bland. Most times, this is just what investors want; brief comfort that their investments are making steady progress. But volatile markets demand more; not just handholding, but facts and honest appraisal. Investment managers’ behaviour in times of market stress can be revealing. This […]
Continue readingEmerging Markets will see outflows as risks rise
August 7, 2013 3 Comments
Emerging markets have been the surprise disappointment of 2013. What happened in the first half of 2013 was a remarkable divergence between emerging markets and the US Dow Jones Index. Most emerging markets lagged the Dow by more than 20%; rarely has asset allocation between mature and emerging markets mattered quite so much. Few people […]
Continue readingRisks increasing in Emerging Markets – investors should review exposure
July 8, 2013 0 Comments
Emerging markets have become a bigger part of most global portfolios. Even private investors have followed institutional funds seeking more rapid growth in developing economies. But, despite the higher risks, the stronger growth of these economies has not translated into better investment performance. Over the first half of 2013, emerging markets are down 10% on […]
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Behavioural Edge 
Why are commodities over-represented in indices?
Do investors have an outdate view of commodities? Far from helping to diversify portfolios, or representing a tangible way to benefit from economic growth, commodities have become volatile financial plays. A misguided view of the nature of these assets has resulted in them being over-represented in indices. Indeed, many passive investors may be surprised to […]
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