Today’s emerging markets, tomorrow’s powerhouses
A success story in the making
At T. Rowe Price, our on-the-ground experience affords us a nuanced and selective view. We are ‘investment locals’, not tourists. Each country is our home, each opportunity our gain.
Economies like China, India and many others provide rich ground for long-term investors, who can no longer afford to underestimate the opportunities they offer, nor the promise they bring. Need some examples?
Discovering Asia’s Cheap Growth Stocks
Asia investing in a post-COVID world
Let's talk: What investors make of emerging markets
Who cares wins: ESG investing in emerging markets needs an active approach
Emerging markets are at the forefront of a fintech revolution
Emerging market tech companies give Silicon Valley a run for its money
China Unexplored – Going beyond the obvious to find tomorrow’s winners
Over the past decade, China has undergone unprecedented change, including an evolving economic model, increased affluence, innovative entrepreneurialism, industrial upgrades, and a shifting geopolitical outlook.
We are assessing potential winners and losers amid new regulations in the education sector.
The growth and sheer dynamism of the Chinese economy and its stock market continue to offer the potential for attractive returns for active investors in Chinese equities.
China: Too Big to Ignore
Join our panel of China experts, on 21 October at 14:00 BST / 15:00 CET, as they discuss why China’s deep and dynamic investment landscape is becoming too big to ignore. The panel will address the investment implications of heightened regulatory tensions and recent market sell-offs and share how these policy changes have impacted their outlooks.
China is undergoing a social and economic evolution at a rapid pace following the pandemic disruption. Rising demographics; a focus on domestic growth; a commitment to a greener future; and continued contributions to the global economy provide fertile ground for investors.
During this discussion, we will explore insights on China’s economic trajectory, key innovations that are underway in the country, its appeal relative to global equity markets, and post-COVID tailwinds that may benefit the country.
2021 Midyear Market Outlook: Positioning for a New Economic Landscape
Just as the 2020 shutdown of much of the global economy by the coronavirus pandemic was unprecedented, the recovery this year appears historically unique. Economic activity is reviving far more quickly than was feared, producing a “V-shaped” recovery and looks set to accelerate in the second half of 2021, particularly in the U.S. However, economic policies and investment fundamentals both have been reshaped in ways that global financial markets are still sorting out and a high degree of unevenness, and uncertainty persists. We think this process will create both opportunities and risks in the second half of 2021, highlighting the potential benefits of a strong strategic investing approach. During this 2021 Midyear Market Outlook our investment experts will discuss four themes:
- Building A Sustainable Recovery
- A Focus on Earnings Growth
- Creativity in an Era of Rising Yields
- China: Too Big to Ignore
With Robert Sharps, Justin Thomson, Mark Vaselkiv, Rita Vohora
Tuesday, 15 June 2021 at 16:00 BST / 17:00 CET
Pioneers in emerging markets investing
Founded in 1937, T. Rowe Price is an independent investment management firm that has been investing in emerging markets since 1980. Today, we are one of the largest active EM asset managers in the world, with more than US$80 billion* invested in developing markets for our clients across equity, fixed income and multi-asset investment strategies.
Our Emerging Markets team is backed by one of the industry’s largest and most experienced buy-side research platforms with analysts located across the globe. This reach combined with our emphasis on meeting company management helps us to uncover the most attractive investments worldwide.
Moreover, at T. Rowe Price, we believe in team work and actively encourage collaboration between our fixed income and equity teams to share perspectives. This is especially worthwhile in emerging markets where we can utilise each other’s research, experience, and knowledge when analysing companies. Our fixed income research team often offer what we call “weather forecasts” for each individual EM economy. This is particularly useful in incorporating this top-down view when analysing individual companies.
Fun Fact #1
Asian Opportunities Equity Fund
Emerging Markets Discovery Equity Fund
A focused, yet well-diversified all-cap fund of typically 50-80 emerging markets companies. We seek to identify “forgotten” stocks that are under-owned and under-researched by mainstream investors, and which we believe are positioned to benefit from a fundamental re-rating.
China Evolution Equity Fund
A style agnostic, index unconstrained portfolio investing in c. 40-80 names across A-shares, H-shares and US-listed Chinese stocks. We focus on areas of the market that may be overlooked by some investors, going beyond the top 100 largest companies in the China universe by market cap to identify future winners.
Asian ex-Japan Equity Fund
An all-cap, growth-oriented portfolio of approximately 80-120 Asia ex-Japan stocks that represent our highest conviction ideas. The fund seeks to capitalise on the inefficiencies and growth potential of economies in the region.
Emerging Local Markets Bond Fund
A diversified portfolio of the local-currency denominated bonds of emerging market sovereign issuers. The strategy seeks to provide generally lower levels of credit risk compared to external bonds, with meaningful opportunities in terms of local interest rate cycle and emerging markets currency exposure.
Emerging Markets Corporate Bond Fund
A diversified portfolio of typically 100 to 150 securities in mainly corporate bonds from emerging market issuers. We would expect the bulk of value added to come from security selection, with the rest from sector selection. We employ a long-term investment horizon, combined with low portfolio turnover.
Asia Credit Bond Fund
An actively managed, diversified portfolio of U.S. dollar-denominated fixed income securities of issuers domiciled, or exercising the predominant part of their economic activity, in Asian countries, excluding Japan. The fund seeks superior risk-adjusted returns via security selection and relative value trades.
Risks – The following risks are materially relevant to T. Rowe Price Funds SICAV – Asia Credit Bond Fund (refer to prospectus for further details): China Interbank Bond Market risk – market volatility and potential lack of liquidity due to low trading volume of certain debt securities in the China Interbank Bond Market may result in prices of certain debt securities traded on such market fluctuating significantly. Contingent convertible bond risk – contingent convertible bonds have similar characteristics to convertible bonds with the main exception that their conversion is subject to predetermined conditions referred to as trigger events usually set to capital ratio and which vary from one issue to the other. Country risk (China) – all investments in China are subject to risks similar to those for other emerging markets investments. In addition, investments that are purchased or held in connection with a QFII licence or the Stock Connect program may be subject to additional risks. Credit risk – a bond or money market security could lose value if the issuer’s financial health deteriorates. Currency risk – changes in currency exchange rates could reduce investment gains or increase investment losses. Default risk – the issuers of certain bonds could become unable to make payments on their bonds. Emerging markets risk – emerging markets are less established than developed markets and therefore involve higher risks. Frontier markets risk – small market nations that are at an earlier stage of economic and political development relative to more mature emerging markets typically have limited investability and liquidity. High yield bond risk – a bond or debt security rated below BBB- by Standard & Poor’s or an equivalent rating, also termed ‘below investment grade’, is generally subject to higher yields but to greater risks too. Interest rate risk – when interest rates rise, bond values generally fall. This risk is generally greater the longer the maturity of a bond investment and the higher its credit quality. Issuer concentration risk – to the extent that a fund invests a large portion of its assets in securities from a relatively small number of issuers, its performance will be more strongly affected by events affecting those issuers. Liquidity risk – any security could become hard to value or to sell at a desired time and price. Sector concentration risk – the performance of a fund that invests a large portion of its assets in a particular economic sector (or, for bond funds, a particular market segment), will be more strongly affected by events affecting that sector or segment of the fixed income market.