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Alternative Market Briefing

Some macro strategies in emerging market investing

Thursday, April 29, 2010

Benedicte Gravrand, Opalesque London.

At the Spring Meetings of the International Monetary Fund (IMF) and the World Bank which started last Saturday in Washington, it was widely agreed that the global recovery had evolved better than expected, reported istockanalyst.com. However, the recovery is uneven, with faster growth in some emerging markets (EMs) while more sluggish recovery in advanced economies like the European Union and Japan, according to the latest World Economic Outlook and the Global Financial Stability Report released by the IMF earlier last week.

This is no news to the fund managers who invest in EMs, as they see opportunities abounding there more than ever. Three of them explained their case at the Jetfin conference “BRIC 2010” in Geneva earlier this month.

Robeco: Country allocation model, quant research, ESG ESG is embedded in all our investment strategies, said Alex Neve, Head of Investment Specialists at Robeco Alternative Investments, a fund manager headquartered in the Netherlands with around Eur135bn in AuM (and Eur12.3bn in EM equities).

And so are the macro investment process and quantitative research. Indeed, macro is very important in EM investing, especially when applying the country allocation model (as opposed to sector), and when using m......................

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