ROAM News and Press, Hartford Multifactor Emerging Markets From 02/09/23

Summary China’s economic reopening is proceeding swiftly, despite the spike in COVID-19 cases in early January. January witnessed a dramatic shift in the performance of growth stocks, with the MSCI Emerging Markets Growth Index posting double-digit returns. Consensus expectat...

Summary SCHE’s portfolio is less risky, due to high level of diversification, low expense ratio, lower volatility, and investing in right sectors in the most promising EMs. SCHE has been paying low but decent yields. Lower risk and potential growth of equities in emerging markets...

Summary In 2021 and 2022, emerging-market (EM) stocks underperformed developed market equities. Despite EM’s subsequent outperformance of 12.5% since then (October 31, 2022, through January 31, 2023) our quant scores remain strongly positive for EM stocks. Meanwhile, in funda...

Summary Despite softer economic conditions globally, emerging markets (EM) credit fundamentals remain supportive—and while we see some pockets of weakness, especially among energy- and food-importing countries, overall we believe EM debt is well positioned to withstand a period of we...

Summary In the past, one of the biggest attractions of EM equities was a stronger macroeconomic growth backdrop than that of developed countries. We’re also seeing signals of declining inflation across various EM countries, including India and Brazil. Investors are understand...

Summary In our view, the balance of demand and supply factors should support oil prices in 2023. Most EM banking systems look better positioned in terms of capital than they were during the Global Financial Crisis. All things considered, we continue to believe that current valuation...

Summary Emerging markets have weathered tightening financial conditions. We now see a relatively good backdrop for EM assets as EM rates peak and China reopens. Stocks added to gains and bond yields fell as markets priced in Federal Reserve rate cuts later in 2023. We don’t think...

Summary For years, analysts have sung the praises of the economic maturity of emerging markets (EM) and the great investment opportunity that they hold. While the economic case is true, as an investment they have been a big dud. Yet, once again analysts are beating the drum and talk...

Summary Markets may be underestimating the stickiness of inflation and central banks’ determination to beat it - and what that means for growth and corporate earnings potential. We favor fixed income and credit over equities, and investment grade over high yield. Should infla...

Summary In an economic downturn, higher-growth EM stocks that have derated and have strong and stable earnings could outperform, in our opinion. In China, we are cautiously positive on possible policy changes ahead and early signs of a roadmap out of zero-COVID. In India, we are con...