Hidden Potential of Emerging Markets (Finimize Interview)

Hidden Potential of Emerging Markets

Mirae Asset's Senior Portfolio Manager, Malcolm Dorson, sat down with Finimize for a discussion on opportunities in emerging markets now.

This conversation covered...

  • Examples of well performing emerging markets
  • How to assess the potential opportunity of an emerging market
  • What are the risks we should be aware of when investing in emerging markets?
  • Is right now a good time to invest in emerging markets and why?

 

DEFINITIONS

Basis points (bps) is a unit that is equal to 1/100th of 1% and is used to denote the change in the value or rate of a financial instrument.

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

MSCI All Country World Index is designed to represent the performance of the full opportunity set of large- and mid-cap stocks across 23 developed and 27 emerging markets. You cannot directly invest in an index.

Price to book (P/B) ratio is the ratio used to compare a stock’s market value to its book value.  ​​​​​​​

Price to earnings (P/E) ratio is the ratio for valuing a company that measures its current share price relative to its per-share earnings.  

Return on equity (ROE) is a ratio of net profit to shareholders’ equity expressed as a percentage. A measure of how well a company uses shareholders’ funds to generate a profit.

Standard deviation is a statistic that measures the dispersion of a dataset relative to its mean.

Important Information

The views and information discussed in this video are subject to change. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the countries or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation.

Past performance is no guarantee of future results.

Investment Risk — There can be no guarantee that any investment strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.

Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, legal, political and economic structures in these countries may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than US investments. Investments in China A-shares carry increased risks, most notably liquidity and credit risks.