Global Investing

Russia: There’s cheap and then there is “near-death” cheap

October 4, 2014

Russia’s equity market has always been cheap, argues USAA‘s Wasif Latif, but at present levels it is just too cheap to ignore. Russia’s economic decline, driven by not only falling oil prices, its main source of income, but also Western sanctions over its intervention in Ukraine has caused a major sell-off that Latif and other asset managers believe is an overshoot. This has brought Russia’s benchmark dollar-denominated RTS stock index to its lowest level since March and before that, a level not seen since Sept. 2009.

Liquidity needs to pick up in EM

March 18, 2014

Emerging markets have seen heavy selling in the past few months, with political and economic crises hitting the region’s currencies and asset markets.

Pakistan, Nigeria, Bulgaria… the cash keeps coming

August 19, 2013

The frontier markets juggernaut continues. Here’s a great graphic from Bank of America/Merrill Lynch showing the diverging fund flow dynamic into frontier and emerging equity markets.

The Sub-Saharan frontier: future generations

June 3, 2013

As growth in Sub-Saharan Africa is set to post a steady 5-6 percent per annum to 2017 according to IMF estimates,  investors will be taking notes on the region’s growth story not least with the financial sector.

Cheer up Morocco, frontier markets are hot

June 3, 2013

Morocco fears its stock market is on the verge of being re-classified as a frontier market when  index provider MSCI announces its annual rejig of equity indices this month.

New frontiers to outpace emerging markets

By Reuters Staff
April 8, 2013

Fund managers searching for yield are increasing exposure to frontier markets (FM) as a diversification from emerging markets (EM), as the latter have been offering negative relative returns since January, according to MSCI data.

Frontier markets: safe haven for stability seekers

By Reuters Staff
November 15, 2012

Frontier markets have an air of adventure and unpredictability about them. One is tempted to ask: Who knows what will happen next?

A happy future for the “doomed continent”?

By Reuters Staff
October 12, 2012

The International Monetary Fund this week painted yet another gloomy picture, cutting its 2012 forecast for Africa along with most other countries around the world. In its latest World Economic Outlook, the IMF shaved its 2012 projections for Africa to 5 percent from 5.4 percent.

Not everyone is “risk off”

May 10, 2012

Who would have thought it. As fears over the euro zone’s fate, Chinese economic growth and Middle Eastern politics drive investors toward safe-haven U.S. and German bonds, some have apparently been going the other way.  According to JPMorgan, bonds from so-called frontier economies such as Pakistan, Belarus and Jordan (usually considered high-risk assets) have performed exceptionally well, doing far better in fact than their peers from mainstream emerging markets.  The following graphic from JPM which runs the NEXGEM sub-index of frontier debt, shows that returns on many of these bonds are running well into the double digits.