• Home
  • Investment
    • Multi-asset
    • DFM & Model portfolios
    • Platforms
    • Ratings, Research & Risk
    • Tax-efficient investing
    • Markets
    • Companies
  • Retirement
    • Pensions
    • Income
    • Investment
    • Regulation
    • Estate planning
    • Equity release
  • Your profession
    • Adviser tips
    • Business models
    • Companies
    • People
  • Regulation
  • Tax planning
  • Protection
  • Technology
  • Smarter Business
  • Events
  • Whitepapers
  • Industry blogs
  • Newsletters
  • Multi-Asset Review
  • ESG
  • Sign in
  •  
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
     
    •  

      Personalise your on site experience

      Download and use the apps

      Access your subscription from outside of the office

      Get relevant news and insight straight to your inbox

      Sign in
     
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Events
    • Upcoming events
      event logo
      Professional Adviser Working Lunches 2021

      A series of invitation only "meet the manager" virtual lunches to discuss how a multi-asset strategy can benefit your clients and your business.

      • Date: 10 Mar 2021
      • ONLINE, ONLINE
      event logo
      Professional Adviser Awards 2021

      Professional Adviser is once more issuing the call for adviser businesses from across the UK to showcase their knowledge, skills and commitment to client care by entering our 2021 Awards.

      • Date: 11 Mar 2021
      • ONLINE, ONLINE
      event logo
      Professional Adviser Multi-Asset Masterclass 2021

      Delivered online over two half-day sessions, the Multi-Asset Masterclass will look to provide a case for multi-asset investing as well as an outlook for the sector over the year ahead.

      • Date: 17 Mar 2021
      • ONLINE, ONLINE
      event logo
      Professional Adviser ESG Masterclass 2021

      Professional Adviser is excited to launch the new ESG Masterclass, taking place live online from 28th - 29th April 2021. Delegates attending this event will benefit from thought-provoking presentations, informative Q&A sessions and structured CPD hours.

      • Date: 28 Apr 2021
      • Live Online, Live Online
      View all events
      Follow our events

      Sign up to receive email alerts about our events

      Sign up

  • Whitepapers
    • Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Industry blogs
  • Multi-Asset Review
  • ESG
Professional Adviser
Professional Adviser
  • Home
  • Investment
  • Retirement
  • Your profession
  • Regulation
  • Tax planning
  • Protection
  • Technology
  • Smarter Business
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
 
  •  

    Personalise your on site experience

    Download and use the apps

    Access your subscription from outside of the office

    Get relevant news and insight straight to your inbox

    Sign in
 
  • Trending now
  • SJP plans 200 job cuts
  • Phoenix buys SL brand
  • IFA Finura makes first acquisition
  • Emerging Markets

'An entirely different beast': How have emerging markets, Asia and Japanese equities evolved over the past decade?

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
0 Comments

Talking Strategies: In the video below, Jupiter's fund managers discuss how changing tides over the past two decades have resulted in emerging markets, including EMD, and Asia and Japanese equities to become a core part of many wealth manager portfolios.

Heightened risk aversion led to a correction in emerging markets this year, yet at the same time investors have continued to see decent earnings growth being delivered by many companies in the region, according to Ross Teverson, Head of Strategy, Emerging Markets and manager of the Jupiter Global Emerging Markets Fund. 

For Teverson, emerging markets' resilience is no surprise given the fact the region as a whole has changed significantly over the past two decades. Most notably, the sector's dependence on commodities has reduced which has resulted in the composition of the investment universe becoming much broader.

"There is a higher weighting in technology, for example; [and] healthcare is starting to become a more significant sector, as are consumer sectors," he explains. "Related to that, we have seen growth in domestic consumption increase as well as intra-regional trade within emerging markets. The flipside of that is they have a lower level of dependence upon exports to developed markets as an engine for growth." 

Jason Pidcock, Head of Strategy, Asian Income and Fund Manager of the Jupiter Asian Income Fund, agrees and notes in particular the quality of companies is what has really changed; there are far more world leaders in Asia than there were some 20 years ago.

"Today there are companies that you could comfortably admit are the best in the world at what they do. There are lots of companies in north Asia in particular, where even if they are only operating in one country like China, they can be very large, very liquid and very investible."

The maturity of the equity asset class has in turn also seen fixed income in emerging regions becoming more mainstream. Alejandro Arevalo, Fund Manager, Fixed Income team and manager of the Jupiter Global Emerging Markets Short Duration Bond SICAV, points to the fact that emerging market debt as an asset class has grown more than 16 times since the turn of the century. Indeed, close to 87% of the $22trn of outstanding debt in emerging markets is denominated in local currency, which means sovereigns and corporates are finding it much easier to fund themselves in the local markets. 

Meanwhile, even the more developed regions across Asia have changed in investment terms. Take Japan which remains challenged in a number of ways, as it has been in the past decade. Yet it is fair to say that even here the corporate sector has changed enormously in recent years. Dan Carter, Fund Manager of the Jupiter Japan Income Fund believes the corporate sector in Japan is just an "entirely different beast to what it has been in any of its post-war history: it is more profitable, shareholder friendlier and therefore it is more investible than it has been for a very long time."

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Emerging Markets
  • Partner Insight
  • emerging market
  • Jupiter
  • emerging markets
blog comments powered by Disqus
Back to Top
  • About Us
  • Contact Us
  • Marketing solutions
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

Incisive Footer Logo

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading