A new report also says that advanced economies’ dominance of financial flows and development aid is waning, underlining the need for better international cooperation and more private investment.
Leading development finance institutions are investing in bank and non-bank lenders across emerging markets in Asia, with prominent allocations in India and Nepal.
In this monthly Q&A, we asked Pictet Asset Management's first female CEO for Asia ex-Japan to share her unfiltered perspectives on markets, leadership and life.
EM corporate debt offers positive real yields while Japan stocks are increasingly attractive as a proxy for global growth. Moreover, Asia is set to benefit from the global upturn in the next phase of the cycle.
The pension fund manager is looking to add to a small allocation in the country's fixed income assets, while it is staying neutral in equities over concerns of high volatility.
Moody’s and Fitch Ratings say that emerging market defaults are increasingly likely to hit record highs, with Asia-Pacific corporates looking particularly vulnerable.
Cathay Life and Shin Kong Life have been upping their exposure to emerging market bonds. They and Fubon Life have also generated strong returns from high-dividend stocks.
Emerging-market equities still have room to rise, but EM bonds face potential problems that could scupper their rally, says Tai Hui, the fund house’s chief market strategist for Asia.
Emerging markets-focused private equity funds strongly outperformed the public markets in the fourth quarter and last year, according to Cambridge Associates.