{"id":596835,"date":"2019-07-09T04:28:26","date_gmt":"2019-07-09T04:28:26","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/09\/sovereign-investors-shift-towards-emerging-markets-asia\/"},"modified":"2019-07-09T04:28:26","modified_gmt":"2019-07-09T04:28:26","slug":"sovereign-investors-shift-towards-emerging-markets-asia","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/09\/sovereign-investors-shift-towards-emerging-markets-asia\/","title":{"rendered":"Sovereign investors shift towards emerging markets, Asia"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-06\"><\/a> <b>Sovereign investors shift towards emerging markets, Asia: <\/b>Sovereign investors increasingly see the largest EM economies as being more attractive investment destinations than their developed market counterparts, in a sharp turnaround from 2017 sentiment, <a href=\"https:\/\/ent.news\/2019\/7\/731.pdf\">according to a study (pdf)<\/a> by investment management company <a href=\"https:\/\/www.invesco.com\/corporate\">Invesco<\/a>. The report, based on interviews with 139 sovereign investors and central bank reserve managers, finds that 36% intend to raise allocations to EMs, compared to 40% for Asia and just 13% for Europe. The fact that investors are increasing allocations in spite of the challenges faced by developing economies indicates the long-term appeal (or \u201cgrowing stickiness\u201d) of EMs, the report notes.<\/p>\n<p><b>Europe\u2019s loss is our gain:<\/b> Slowing economic growth and heightened political risk, including the impact of Brexit and the rise of populist movements, are contributing to the shift away from sovereign investment in Europe. \u201cA large chunk of Europe has negative bond yields and growth forecasts are relatively low compared to emerging markets, so from an investment perspective it\u2019s less attractive,\u201d said Alex Millar, head of EMEA institutional at Invesco, <a href=\"https:\/\/www.reuters.com\/article\/us-swf-investments-markets\/sovereign-investors-shun-europe-for-asia-emerging-markets-idUSKCN1U3005\">told Reuters<\/a>.<\/p>\n<p><b>China is seen as particularly attractive: <\/b>Despite its trade tensions with the US weighing on investor decisions, China\u2019s appeal among sovereign investors has increased more than any other EM this year. Sovereign investors cited a new investment law passed in 1Q2019 that prohibits the forced transfer of technology from foreign-invested businesses as a particularly positive step.<\/p>\n<p><b>Fixed income allocations are up as equity volatility rises:<\/b> The number of sovereigns planning to increase investment in bonds has increased to 33% while equity allocations have fallen to 30%. The move towards more defensive portfolios follows a year of increasing turbulence on the equity markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sovereign investors shift towards emerging markets, Asia: Sovereign investors increasingly see the largest EM economies as being more attractive investment destinations than their developed market counterparts, in a sharp turnaround from 2017 sentiment, according to a study (pdf) by investment management company Invesco. The report, based on interviews with 139 sovereign investors and central bank [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":596836,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9272],"tags":[116,115,72,164,297,125,1510],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-596835","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-china","tag-emerging-markets","tag-enterpriseam","tag-equities","tag-europe","tag-investment-watch","tag-the-macro-picture","wpautop","entry"],"acf":{"mongo_id":"ff319e2d-588b-4f14-b1f1-0873093945dc","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2020\/5\/22.jpg","photo_position":"above","related_issue":[596815],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Sovereign investors shift towards emerging markets, Asia - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/07\/09\/sovereign-investors-shift-towards-emerging-markets-asia\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sovereign investors shift towards emerging markets, Asia\" \/>\n<meta property=\"og:description\" content=\"Sovereign investors shift towards emerging markets, Asia: Sovereign investors increasingly see the largest EM economies as being more attractive investment destinations than their developed market counterparts, in a sharp turnaround from 2017 sentiment, according to a study (pdf) by investment management company Invesco. 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Worries about risk in emerging markets is leading ESG investors to shun them, according to the Financial Times. In theory, ESG investors should care about improving environmental and ethical standards in emerging-market business practices and production lines. 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Despite the fact that asset managers have been unanimous in their praise and bullish outlook\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/3\/500.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":573397,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/04\/em-portfolio-inflows-fall-m-o-m-in-july-but-equity-debt-flows-are-continuing-to-recover-iif\/","url_meta":{"origin":596835,"position":3},"title":"EM portfolio inflows fall m-o-m in July, but equity + debt flows are continuing to recover -IIF","author":"enterpriseam admin","date":"4 August 2020","format":false,"excerpt":"Net emerging markets portfolio inflows nearly halved in July to USD 15.1 bn from USD 29.2 bn in June, according to the Institute of International Finance\u2019s (IIF) monthly capital flows tracker. The m-o-m decline comes as \u201chard data are still lagging behind\u201d a recovery in investors\u2019 sentiment on the outlook\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/8\/15.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572275,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/17\/shrugging-off-debt-relief-initiatives-developing-countries-continue-tapping-global-debt-markets-to-plug-covid-19-financing-needs\/","url_meta":{"origin":596835,"position":4},"title":"Shrugging off debt relief initiatives, developing countries continue tapping global debt markets to plug covid-19 financing needs","author":"enterpriseam admin","date":"17 June 2020","format":false,"excerpt":"Shrugging off debt relief initiatives, developing countries continue tapping global debt markets to plug covid-19 financing needs: Developing countries are piling on more debt to finance the deficits they face as a result of the covid-19 pandemic, rather than opting for potential restructuring of their existing debts, according to the\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/6\/191.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":570814,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/04\/15\/imf-waives-usd-214-mn-in-debt-to-developing-countries-to-repurpose-funds-for-covid-19\/","url_meta":{"origin":596835,"position":5},"title":"IMF waives USD 214 mn in debt to developing countries to repurpose funds for covid-19","author":"enterpriseam admin","date":"15 April 2020","format":false,"excerpt":"IMF relieves 25 developing nations from USD 214 mn in debt to repurpose funds for covid-19: The IMF has canceled debt payments for 25 of its most vulnerable sovereign debtors through grants from its catastrophe trust CCRT, the lender said in a statement. This allows the countries \u2014 which are\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/4\/140.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/596835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=596835"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/596835\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/596815"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/596836"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=596835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=596835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=596835"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=596835"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=596835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}