Emerging economies’ recoveries are lagging as slow vaccinations undermine confidence and government interventions have supported economies at the expense of debt-to-GDP ratios but current account surpluses offer a buffer for now.
Historically, certain ESG factors, such as governance (G) as well as the social and political backdrop (S) have played a critical role in the fundamental and risk analysis of emerging market credits, both sovereign and corporate.
During our digital, private meetings, fund selectors met with fund managers from Mirae Asset Global Investments, Skagen Funds and Global X ETFs to learn more about the funds presented.
Even prior to the COVID-19 pandemic, growth and inflation were broadly subdued. Growth stood below measures of potential output in countries such as Brazil, Mexico and South Africa.