Learn more about following Emerging Markets
What distinguishes the Emerging Markets?
Emerging Markets refers to countries that are typically undergoing a transformation from a developing to developed or advanced economy. This convergence and modernisation process opens up great market potential, and Emerging Markets exhibit high growth dynamics. At Raiffeisen Capital Management, we believe that a broadly diversified fund portfolio should also include investments in the Emerging Markets over the medium to long term – if the investor is willing to bear the associated risk. Positive factors are low debt, moderate monetary policy and, as previously mentioned, the potential for strong growth, whereas the economic structures and political systems in these countries are often still in flux. Therefore, Emerging Market funds generally exhibit elevated volatility.
Current developments on the Emerging Markets
For the equity markets, February is quite often a month of consolidation following the initial weeks of the year. But not this time – instead, “risk-on” was the order of the day this year. Stock prices rose nearly everywhere, and mostly very good corporate earnings in the USA provided strong support for this trend.
Eastern Europe
Equity markets in Central and Eastern Europe are picking up speed again
The stock markets in Central and Eastern Europe suffered greatly from the war in Ukraine, especially in 2022. Last year, a noticeable recovery set in from April, which accelerated further in some markets. This was due to the stabilization of energy prices and security of supply.
Raiffeisen-Zentraleuropa-ESG-Aktien: new focus, proven expertise
The former Raiffeisen-Osteuropa-Aktien fund now invests sustainably – with a new focus on countries that offer high growth but are more stable from a political and economic standpoint. Starting immediately, the fund’s new name is Raiffeisen-Zentraleuropa-ESG-Aktien.
CE3 – Poland, Czechia, Hungary-Update
Poland will receive EU funding in the amount of roughly EUR 137 billion that has been held back up to now. In Hungary, there are apparently conflicts between the central bank and the government.
Türkiye-Update
The Turkish economy continues to avoid a recession, profiting from a young, growing population. On the foreign policy front, President Erdogan is cosying up to the USA and NATO again to some extent, but remains unpredictable.
Russia-Update
There is no doubt that President Putin will be re-elected with a substantial majority in the coming days. The fact that inflation is declining again will likely help Putin here just as much as record-low unemployment and generous state subsidies for people buying apartments.
Invest sustainably in Eastern European equities
The equity fund Raiffeisen-Osteuropa-Aktien was created almost 30 years ago. We are now altering the investment strategy used in this well-established fund, making it more sustainable and adjusting its geographical scope.
Raiffeisen-Osteuropa-Rent: participate in economic acceleration
Bonds and currencies in Central and Eastern Europe were hit very hard in 2022, but then rebounded significantly over the past year. How is the outlook for the region shaping up for 2024?
Eastern European bond markets remain attractive
Following a poor year for bonds in 2022, the Eastern European bond markets have done surprisingly well this year. Does this mean that the story is already over, or does the region still have the potential to generate returns?
Asia
Good valuations and improvements in ESG reporting
The Chinese equity market has priced in a number of negative aspects, according to Jürgen Maier, who is confident about the prospects for China as the leading market, as well as for India. Maier, fund manager of Raiffeisen-Nachhaltigkeit-EmergingMarkets-Aktien, cites several arguments and discusses the stringent sustainability requirements applied in the asset selection process and the progress in fulfilling ESG criteria. He currently finds certain topics very attractive.
China-Update
China’s equity markets are enjoying a strong recovery and giving investors hope that the performance drought is over. The Chinese leadership has set this year’s growth target at 5% and wants to transform the previous growth model more quickly.
India-Update
Indian government bonds are seeing significant gains due to the fact that the government intends to take on less new debt than was generally expected. Otherwise, however, the last budget draft before the parliamentary elections contains little that is surprising or new.
Raiffeisen-Asia-Opportunities-ESG-Aktien: Sustainable investments in Asia
The sustainable Raiffeisen-Asia-Opportunities-ESG-Aktien fund primarily concentrates on the investment opportunities in five large thematic categories in the emerging countries of Asia.
Latin America
Brazil-Update
Brazilian economic data remains largely positive. Brazil’s equity market and the markets of the majority of its neighbouring countries are still in the midst of a consolidation following the significant gains in 2023.
ESG-transformation of the Emerging Market bond markets
The Emerging Markets present a number of major challenges for investors when it comes to sustainability and ESG-criteria. However, understanding and overcoming these challenges also opens up significant opportunities, both in terms of earnings and promoting a transition to sustainable business practices in the Emerging Markets.
Sustainability and the Emerging Markets
The Emerging Markets are home to a growing number of countries that qualify as sustainable. How is sustainable investment in Emerging Markets possible? And how is sustainability verified?
Emerging Markets are becoming more and more interesting for sustainable investments
From a sustainability perspective, Emerging Markets have often been considered unattractive, but the tide is turning. In this interview, Jürgen Maier, fund manager of Raiffeisen Sustainable EmergingMarkets Equities, explains, among other things, how an Emerging Markets equity fund can be managed sustainably and which markets or sectors are particularly in focus.
Despite careful research, the statements contained herein are intended as non-binding information for our customers and are based on the knowledge of the staff responsible for preparing these materials as of the time of preparation. They are subject to change by Raiffeisen KAG at any time without further notice. Raiffeisen KAG assumes no liability whatsoever in relation to this document or verbal presentations based on such, in particular with regard to the timeliness or completeness of the information presented and the sources of information, or in respect of the accuracy of the forecasts presented herein.
The funds Raiffeisen-Asia-Opportunities-ESG-Aktien, Raiffeisen-Zentraleuropa-ESG-Aktien, and Raiffeisen-Nachhaltigkeit-EmergingMarkets-Aktien exhibit elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital.