Emerging Markets Report – August 2017

Emerging markets have received a lot of attention recently, offering compelling returns and investment options for institutional and retail investors. This Emerging Markets Report looks at data from more than 2,100 long-only emerging and frontier markets to offer a unique look at emerging market investment trends through 2Q 2017, the latest period for which eVestment data is available.

Highlights from this report include:

  • Passive products were the primary recipient of flows in EM equity. Retail investors drove flows for EM fixed income.
  • U.S. and Asia-domiciled investor allocations to EM equity significantly lag their European counterparts.
  • Institutional investor sentiment toward EM equity seems to have shifted toward positive.
  • Sovereign wealth funds were the largest detractors of assets during the past 3 years across both EM equity and fixed income strategies.
  • Returns show little evidence to support the need for portfolio management teams to be located within their investment geography.