Trendscout news issue 24 - External debt is the first sector in emerging markets to regain attention

19. Oktober 2018

External debt is the first sector in emerging markets to regain attention

While interest in emerging market equities has reached its low for the year, external debt funds are experiencing a slight recovery.

Interest in funds for emerging market equities have declined sharply once again. This may be due to the weak performance of this market as a whole. It is noticeable, however, that the remaining interest is concentrated on ETFs; active funds have achieved miserable results over the past 12 months. According to the fundinfo Outperformance Index, 82% of all funds lagged behind the benchmark (see fundinfo's Research News).

External debt is the first sector in emerging markets to regain attention. This is driven by ETFs like iShares JPM $ EM Bd. UCITS ETF with rising attention from global financial institutions and the Vanguard USD Emerging Markets Govt. Bond UCITS ETF, with increased interest via public channels and Swiss institutions.

Among active funds, the recovery of the market leader Goldman Sachs Emerging Markets Debt Portfolio is striking; primarily thanks to gains amongst Swiss and Spanish investors via the channel of global financial institutions. BlackRock Emerging Markets Bond has recently returned to second place, driven by Belgian investors.

Document downloads for selected categories shown in percent of all downloads for all categories over 1 year within European and Asian sales channels

Other Trendscout highlights

  • Contrarian investors are starting to look for gold mining equity funds, with a focus on trackers and the Schroder Global Gold fund.
  • Robeco Global Consumer Trends Equities, with its focus on online businesses, is increasingly popular in Belgium, Spain and Hong Kong.
  • Amongst the worst hit markets, although we see increased interest in Turkish funds, further declines occurred for Brazil, Russia and South Africa.

Categories gaining attention

  • Equity World
  • Equity Health Care
  • Equity USA

Categories losing attention

  • Liquid Alternatives Multi-Strategy
  • Equity China
  • Equity Eurozone

Funds gaining attention

  • Robeco Global FinTech Equities
  • MIV Global Medtech Fund
  • iShares Core MSCI World UCITS ETF
  • Fidelity Asian High Yield Fund
  • Capital Group New Perspective (Lux)

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