For professional investors in Brazil

Divergent emerging market outcomes in an uneven recovery


Ales Koutny, CFA

Ales Koutny, CFA

Portfolio Manager


16 Feb 2022

Key takeaways:

Portfolio managers and emerging market debt specialists Jennifer James and Ales Koutny analyse emerging market (EM) country fundamentals and consider how they influence opportunities for investors.

Key takeaways:

  • EMs are ahead in their tightening cycles relative to developed markets (DMs), but further divergence between countries will emerge in their differing paths to normalisation.
  • Assessing economic fundamentals can indicate how the inflation and growth outlook could look for EM countries this year and their resilience against volatility from a rising rate environment.
  • As inflation wanes during the second half of 2022, we believe real rates could turn more positive in some EMs while lessons learnt from how EM asset classes perform during a rate hiking cycle could be instructive for investors and asset allocation decisions.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

Marketing Communication.

 

Glossary

 

 

 

Important information

Please read the following important information regarding funds related to this article.

The Janus Henderson Horizon Fund (the “Fund”) is a Luxembourg SICAV incorporated on 30 May 1985, managed by Henderson Management S.A. Henderson Management SA may decide to terminate the marketing arrangements of this Collective Investment Scheme in accordance with the appropriate regulation. This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.
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