EM bonds as source of income
Selective EM equity to play EM-DM growth
Asia and China in global portfolios
The rise of ESG in emerging markets
After the global repricing of yields and spreads, EM bonds offer an interesting entry points in absolute and relative terms.
Later in 2023 we could be approaching a Fed pivot and a possibly weaker dollar.
EM equities should start to benefit from a better backdrop for EM FX and from the EM-DM growth premium as well as from attractive valuations.
Chinese and Asian markets may offer an interesting source of diversification.
The Chinese equity market (A share) is well diversified at a sector level.
Chinese government bonds have been quite stable amid the global debt sell-off.
EM and low-income countries are among the most vulnerable areas to the effects of climate change.
Growing investor demand for green, social and sustainability-linked bonds could help EM to achieve a green transition.
End of 2022 and Entering 2023
2023 onwards
Mid-to-long-term perspective
Source: Amundi as of 19 October 2022.