Learn more about following Emerging Markets
What distinguishes the Emerging Markets?
Emerging Markets refers to countries that are typically undergoing a transformation from a developing to developed or advanced economy. This convergence and modernisation process opens up great market potential, and Emerging Markets exhibit high growth dynamics. At Raiffeisen Capital Management, we believe that a broadly diversified fund portfolio should also include investments in the Emerging Markets over the medium to long term – if the investor is willing to bear the associated risk. Positive factors are low debt, moderate monetary policy and, as previously mentioned, the potential for strong growth, whereas the economic structures and political systems in these countries are often still in flux. Therefore, Emerging Market funds generally exhibit elevated volatility.
Eastern Europe
CE3 – Poland, Czechia, Hungary-Update
Poland’s central bank sees higher growth than before, interest rates are being cut in Czechia again, and in Hungary, Prime Minister Orban is getting a new political antagonist.
Raiffeisen-Zentraleuropa-ESG-Aktien: new focus, proven expertise
The former Raiffeisen-Osteuropa-Aktien fund now invests sustainably – with a new focus on countries that offer high growth but are more stable from a political and economic standpoint. Starting immediately, the fund’s new name is Raiffeisen-Zentraleuropa-ESG-Aktien.
Türkiye-Update
The opposition is racking up landslide victories in the local elections. The thawing with the USA is continuing (for now) and the central bank surprised with another interest rate hike.
Russia-Update
President Putin wins the presidential election as expected. The International Monetary Fund (IMF) again raises its growth projection for Russia, which is to expand more rapidly than many developed industrialised countries in 2024.
Equity markets in Central and Eastern Europe are picking up speed again
The stock markets in Central and Eastern Europe suffered greatly from the war in Ukraine, especially in 2022. Last year, a noticeable recovery set in from April, which accelerated further in some markets. This was due to the stabilization of energy prices and security of supply.
Invest sustainably in Eastern European equities
The equity fund Raiffeisen-Osteuropa-Aktien was created almost 30 years ago. We are now altering the investment strategy used in this well-established fund, making it more sustainable and adjusting its geographical scope.
A risky situation on the Bosporus Strait
After the earthquake and before the elections, the mix of circumstances in Türkiye is still too risky and the outlook too uncertain to put the country back on the buy list from a local currency standpoint.
Asia
Good valuations and improvements in ESG reporting
The Chinese equity market has priced in a number of negative aspects, according to Jürgen Maier, who is confident about the prospects for China as the leading market, as well as for India. Maier, fund manager of Raiffeisen-Nachhaltigkeit-EmergingMarkets-Aktien, cites several arguments and discusses the stringent sustainability requirements applied in the asset selection process and the progress in fulfilling ESG criteria. He currently finds certain topics very attractive.
China-Update
China’s growth surprised on the upside in the first quarter, but doubts about the strength of the economy remain. The International Monetary Fund (IMF) is worried about the growing debt and about the potential for an aggressive export policy.
India-Update
India continues to grow rapidly. The equity market can look back on very good performance in the last fiscal year, and the ruling BJP can look forward to a victory in the parliamentary elections.
Raiffeisen-Asia-Opportunities-ESG-Aktien: Sustainable investments in Asia
The sustainable Raiffeisen-Asia-Opportunities-ESG-Aktien fund primarily concentrates on the investment opportunities in five large thematic categories in the emerging countries of Asia.
Latin America
Brazil-Update
Brazil’s shares lose ground in March, against the global trend and as the only market in Latin America. The economic data remain mixed and still show a sluggish economy.
Sustainability and the Emerging Markets
The Emerging Markets are home to a growing number of countries that qualify as sustainable. How is sustainable investment in Emerging Markets possible? And how is sustainability verified?
Emerging Markets are becoming more and more interesting for sustainable investments
From a sustainability perspective, Emerging Markets have often been considered unattractive, but the tide is turning. In this interview, Jürgen Maier, fund manager of Raiffeisen Sustainable EmergingMarkets Equities, explains, among other things, how an Emerging Markets equity fund can be managed sustainably and which markets or sectors are particularly in focus.
Despite careful research, the statements contained herein are intended as non-binding information for our customers and are based on the knowledge of the staff responsible for preparing these materials as of the time of preparation. They are subject to change by Raiffeisen KAG at any time without further notice. Raiffeisen KAG assumes no liability whatsoever in relation to this document or verbal presentations based on such, in particular with regard to the timeliness or completeness of the information presented and the sources of information, or in respect of the accuracy of the forecasts presented herein.
The funds Raiffeisen-Asia-Opportunities-ESG-Aktien, Raiffeisen-Zentraleuropa-ESG-Aktien, and Raiffeisen-Nachhaltigkeit-EmergingMarkets-Aktien exhibit elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital.