LONDON, Oct 4 (Reuters) – With deep pockets and long time
horizons, and perhaps even a desire to do good, some of the
world’s wealthiest families are investing in risky African and
other frontier markets.
Family offices, which manage assets on behalf of wealthy
families in more developed markets, are generally tight-lipped
and seen as conservative in their approach to investing.
It’s been a good year for frontier markets, though some have done better than others. One success story has been Vietnam.
Hanoi’s domestic VNI equity index is up 17 percent. That compares well with stock markets in other Asian frontiers – Sri Lanka has gained only 3 percent, Bangladesh is down 1 percent on the year and Mongolia has plunged more than 20 percent, hurt by a restrictive foreign investment law.
LONDON (Reuters) – Standard & Poor’s and Fitch expressed concern on Wednesday about Ukraine’s falling foreign exchange reserves and its ability to refinance its debt, saying they were negatives for the country’s single-B rating.
Ukraine’s dollar debt and debt insurance costs have moved rapidly into distressed territory this week, after Moody’s downgraded the country to Caa1 from B3 late on Friday and put the rating on review for a further downgrade. Moody’s cited concerns over a drop in foreign currency reserves and potentially worsening relations with Russia.
LONDON (Reuters) – Turkey’s lira and India’s rupee rose 2 percent on Thursday and their stock markets surged as the Federal Reserve’s surprise decision to sustain its monetary stimulus granted a lifeline to embattled emerging markets.
The BRICS – Brazil, Russia, India, China and South Africa – and other emerging countries have complained in the past few months that the threat of the Fed running down the amount of new cash it is pumping into the economy each month is hurting their economies.
Sept 11 (Reuters) – The Chilean peso’s 6 percent fall this
year is a healthy correction from its strong path in 2012 and it
may weaken further once the U.S. Fed cuts back monetary
stimulus, Chile’s finance minister said on Wednesday.
Many emerging economies have been concerned about a sharp
fall in their currencies in the past few months, on expectations
the U.S. Federal Reserve will scale back a bond-buying programme
which has driven demand for riskier assets.
LONDON, Sept 9 (Reuters) – The world’s less developed states
are reappearing in international debt markets, putting up with
slightly higher borrowing costs in a race to beat a growing
aversion to risk that could shut them out for some time.
The uptick in yields may, however, make local corporate
borrowers reluctant to tap the markets, even where their
governments have set a benchmark with a sovereign deal.
LONDON, Sept 6 (Reuters) – Emerging stocks rose on Friday,
heading for weekly gains of 2 percent as markets adjusted to the
idea of a withdrawal of U.S. monetary stimulus, though Polish
stocks were on track for steep losses on concern over a pensions
A reduction in the Federal Reserve’s money-printing
programme is regarded as negative for flows to riskier assets.
But emerging markets have largely priced in the start of
tapering after the Fed’s mid-September meeting, analysts say.
LAGOS/LONDON, Sept 3 (Reuters) – Nigeria’s central bank will
resist pressure to devalue the naira since it retains
ample funds to defend the currency, a central bank spokesman
said, and its governor is expected to stay the course until his
term is up in 10 months.
Nigeria’s naira has fallen in recent months, trading outside
the central bank’s target band of 150-160 naira to the U.S.
dollar since June, initially due to foreign investors booking
profits on their naira assets, and on importers buying dollars.
LONDON (Reuters) – European fund managers showed an increasing home bias this month, allocating their highest weighting to euro zone equities in 18 months as economic data indicated signs of recovery in the bloc.
Fund managers also matched last month’s level of allocations to euro zone bonds, which were the highest since March 2012, a monthly Reuters asset allocation poll showed.
LONDON (Reuters) – Global investors lifted their holdings of euro zone assets to the highest in more than a year this month while trimming exposure to Asian equities during a rout of emerging market assets, Reuters polls showed.
Fund managers are growing more optimistic about the euro zone’s recovery from recession and its debt crisis, reinforced by Germany – the bloc’s largest economy – enjoying its fastest rate of expansion in more than a year in the second quarter.