SOURCE: Mirae Asset Global Investments

Mirae Asset Global Investments

August 01, 2014 03:59 ET

Mirae Asset Global Investments Releases 2014 Emerging Markets Mid-Year Update

Emerging Markets Expert Addresses Performance, Politics and Policy in 2014 for Selected Emerging Economies

HONG KONG, CHINA--(Marketwired - Aug 1, 2014) - Mirae Asset Global Investments ("Mirae Asset") published their 2014 Emerging Markets Mid-Year Update today. The twenty page report, authored by the Mirae Asset senior investment team led by CIO José Gerardo Morales, CFA, reflects back on the first half of 2014, in addition to providing insights for various regions for the remainder of 2014. http://investments.miraeasset.com.hk/download/2014-Mirae-Asset-Emerging-Markets-Mid-Year-Update-HK.pdf

The report states that emerging market equity performance has differed somewhat from consensus predictions. Emerging market equities, as measured by the MSCI Emerging Markets Index, returned 6.1% as of mid-year, due to falling U.S. 10-year yields, the relative attractiveness of emerging markets versus European yields, and elections in Turkey, Brazil, India and Indonesia. Mirae Asset contends that the rebound of emerging markets was further helped by the fact that much of the impact of tapering by the U.S. Federal Reserve was already seen in the second half of 2013, followed by quick damage-control exercises by the central banks of the "Fragile Five" (Brazil, India, Indonesia, South Africa and Turkey), all of which have outperformed versus the MSCI Emerging Market Index year to date.

Regional insights include:

  • Asia ex-Japan:
    • Key economies of China and India show signs of stabilization.
    • Reforms will be an important part of the underlying story in both countries in the second half of 2014.
  • Latin America:
    • Brazilian equities are likely to remain volatile until October elections, and remain reactive to poll readings and political headlines. The Brazilian market may offer upside potential in the event of a politically driven re-rating, both before and after the presidential vote.
    • Mexico remains an attractive market despite high equity valuations and lagging the region during the first half of the year.
  • Eastern Europe, the Middle East and Africa (EEMEA):
    • The Euro-area linked economies of Poland, Hungary and the Czech Republic are faring much better than Russia, South Africa and Turkey.
    • The Turkish market is likely to remain volatile, though it offers good opportunities with accelerating growth potential.

Key Takeaways:

  • Elections and the actions of central bankers will continue to significantly impact key regions in emerging markets for the remainder of 2014.
  • Overall, it remains imperative to retain a selective and active approach to emerging markets as we enter the second half of 2014.

Contributors:

  • José Gerardo Morales, CFA: CIO - Mirae Asset Global Investments (USA)
  • Young Hwan Kim: Deputy CIO - Mirae Asset Global Investments (USA)
  • Rahul Chadha: Co-CIO - Mirae Asset Global Investments (HK)
  • Byung Ha Kim: Co-CIO - Mirae Asset Global Investments (HK)

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About Mirae Asset Global Investments
Mirae Asset Global Investments is one of the world's largest investment managers in emerging market equities1. With over 560 employees, of which 120 are dedicated investment professionals, Mirae Asset offers a breadth of emerging markets expertise from its offices in Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, the U.K., the U.S., and Vietnam. The firm manages over $60 billion in assets globally, of which more than $16 billion is invested in emerging market equities (as of 06/30/14). http://investments.miraeasset.com.hk2

1 Source: One of the largest investors in emerging market equities amongst 79 asset management firms surveyed by Investment & Pensions Europe ("IPE Survey: Managers of Emerging Market & Frontier Equities," 31 January 2014).

2 The website has not been reviewed by the Securities and Futures Commission of Hong Kong. It may contain information on funds which are not authorised for sale to the public in Hong Kong and are not available to Hong Kong investors.

Disclaimer:

Certain information contained in this document is compiled from third party sources. Whilst Mirae Asset Global Investments Group ("Mirae Asset") has, to the best of its endeavor, ensured that such information is accurate, complete and up-to-date, and has taken care in accurately reproducing the information, it shall have no responsibility or liability whatsoever for the accuracy of such information or any use or reliance thereof. The provision of this document shall not be deemed as constituting acceptance, or promise of any further contract or amendment to any contract which may exists between the parties. It should not be distributed to any other party except with the written consent of Mirae Asset. Nothing herein contained shall be construed as granting the recipient whether directly or indirectly or by implication, any license or right, under any copy right or intellectual property rights to use the information herein. The information and materials provided herein are given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk.

Mirae Asset accepts no liability for any loss or damage of any kind resulting out of the unauthorised use of this document. This document is issued by Mirae Asset and has not been reviewed by the Securities and Futures Commission of Hong Kong.

Contact Information

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    Pallase Tsang
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    Tel: +852 3555 5821
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