Why emerging markets are winning gold in 2016

As 11,000 athletes descended on the sporting venues of Rio de Janeiro, the back pages have been awash with news from Brazil. At the same time, the country has been one of the best-performing global equity markets in 2016, with the MSCI Brazil Index up a staggering 79 per cent in sterling terms year-to-date.*

Indeed, emerging markets have outperformed their developed market peers in 2016 so far, having been largely in the wilderness since 2010.

With previous headwinds – such as a Chinese hard landing and tight US monetary policy – turning into tailwinds, members of Neptune’s emerging markets team explore what has been behind EM outperformance and how this is informing their outlook for the asset class.

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*Morningstar, as at 30.07.2016. Past performance is not a guide to future performance.

Important Information

Investment risks

Neptune funds may have a high volatility rating and past performance is not a guide to future performance. These are Neptune's views and as such this document is deemed to be impartial research. We do not undertake to advise you as to any change of Neptune's views. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and your clients may not get back the original amount invested. Investments in emerging markets are higher risk and potentially more volatile than those in established markets. A majority of investments made by Neptune funds may be in smaller and medium-sized companies which can be higher risk than those in larger companies. References to specific securities are for illustration purposes only and should not be taken as a solicitation to buy or sell these securities. Neptune funds are not tied to replicating a benchmark and holdings can therefore vary from those in the index quoted. For this reason, the comparison index should be used for reference only. Neptune does not give investment advice and only provides information on Neptune products. Please refer to the prospectuses for further details.