Investing in Emerging Markets: Out of the Rabbit Hole?
Tuesday, December 6, 2016 / 3:45 pm - 4:45 pm
Jonathan Wheatley, Deputy Emerging Markets Editor, Financial Times
Hedi Ben Mlouka, Founding Partner and Chief Investment Officer, FIM Partners
Scott Mackin, Managing Partner and Co-President, Denham Capital
Arvind Rajan, Managing Director and Head of Global and Macro, PGIM Fixed Income
Nicolas Rohatyn, CEO and Chief Investment Officer, the Rohatyn Group
After underperforming developed markets for years, asset valuations in emerging markets are rising as investors rush in searching for yield. Growth in emerging market indexes has outpaced global growth, and IMF predicts that emerging economies will grow over 4 percent next year, more than double the rate of developed countries. What underlying factors are driving the optimism? What headwinds remain? What countries have been making the reforms required for businesses to flourish, such as reliable contract enforcement, insolvency resolution and protection of private property rights? What about other considerations such as effective infrastructure, stable macroeconomic frameworks and friendly trade regimes? What countries are investing in human capital? Declining commodity prices have taken a toll on export-dependent countries while providing relief to importers. Has this reversal of capital flows made certain currencies and asset valuations more attractive? Last, what capital structure considerations are influencing investors decisions?