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Kenneth J Heinz From Komfie Manalo, Opalesque Asia:
Emerging markets remain the top choice among institutional buy-side investors to provide them with consistent growth even as the Western and more developed markets are continuing to show signs of slowdown and increased risks, according to a study by financial markets’ research and strategic advisory firm Tabb Group.
The study, "The Emerging Market Resurgence: Access, Risk and Reward", claims that emerging-market investors are now shifting to using both company-and sector-based strategies instead of the traditional macro country strategies.
Kevin McPartland, author of the Tabb report said that the shift in strategies leads to a growth in the demand for swaps and other access products.
"Swaps, participation notes and other similar access structures can offer institutional buy-side investors more well-rounded investment opportunities than exchange-traded funds and depository receipts, which provide less flexibility. Continued growth in these broad-based, emerging-market ETFs will come largely from retail investors," he said.
McPartland believes that emerging market groupings such as the BRIC countries – Brazil, Russia, India and China – and the new so-called CIVETS, comprised of Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa, will continue to lose relevance, as similar economi...................... To view our full article Click here
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