David Semple on the State of Emerging Markets
08 May 2020
In this episode of Trends with Benefits I speak with David Semple, Portfolio Manager for VanEck's emerging markets equity strategy about the state of emerging markets, COVID-19's impact, and how the nature of growth among emerging markets countries has changed.
Is ‘emerging markets’ an artificial construct?
The virus, as David noted during our discussion, has accelerated trends or exacerbated issues present in countries prior to the pandemic. Certain countries may be in a better position to deal with the economic impact. The relative strengths or weaknesses of specific countries are laid bare and highlight another truth of emerging markets: every country is different.
Many investors treat emerging markets as a unique asset class, but if it wasn’t already an asset class today, would it be? Differentiation in demographics, resources or financial position are factors that can drive performance differentials in currency and securities markets.
Then there’s the China question. In the latest evolution of broad emerging markets benchmarks China accounts for approximately 40% of the 'emerging markets' universe. This should cause asset allocators to rethink or, at least, reconfirm their approach to emerging markets exposure.
Trend or Fad
Listen for David’s take on Mass online learning, ESG, Peloton at home, Esports, CBD products, and smart clothing/wearables.
Important Disclosure
This is a marketing communication for professional investors only. Please refer to the UCITS prospectus and to the Key Investor Information Document (KIID) before making any final investment decisions.
This is a marketing communication for professional investors only. Please refer to the UCITS prospectus and to the Key Investor Information Document (KIID) before making any final investment decisions. This information originates from VanEck Securities UK Limited (FRN: 1002854), an Appointed Representative of Sturgeon Ventures LLP (FRN: 452811), who is authorised and regulated by the Financial Conduct Authority in the UK. The information is intended only to provide general and preliminary information to FCA regulated firms such as Independent Financial Advisors (IFAs) and Wealth Managers. Retail clients should not rely on any of the information provided and should seek assistance from an IFA for all investment guidance and advice. VanEck Securities UK Limited and its associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Brokerage or transaction fees may apply.
All performance information is based on historical data and does not predict future returns. Investing is subject to risk, including the possible loss of principal.
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© VanEck Securities UK Limited
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