OMFIF | Wed, Aug 28, 2019
by Gary Kleiman
In the first half of the year, emerging market debt and equity asset classes were up in benchmark indices. Combined fund flows were positive at around $40bn. Early-year euphoria gave way to solid performance expectations.
Several months ago, the category was a strong favourite in global investor surveys, compared to developed markets. The world’s major central banks were expected to tighten liquidity only marginally. It was thought that the two largest economies, the US and China, could resolve trade and investment disputes over time. Developing market growth was projected at 4%-5% on subdued inflation, as bank and non-bank deleveraging continued after years of double-digit credit expansion.