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.
Current developments in the Emerging Markets
Following the price declines in April, the developed equity markets did well again in May, posting an overall gain of more than 4%, with the USA leading the way. By contrast, developments for EM equities were much more uneven, and at the index level there was only a minimal gain of around 0.3% (both figures calculated in USD).
Eastern Europe
CE3 – Poland, Czechia, Hungary-Update
The new government in Poland is facing stiff headwinds, but feels reinforced by the outcome of the EU elections. The governing parties in Czechia are discussing an additional tax on banks. The new opposition party in Hungary did well in the EU elections.
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
Inflation rises to 75%, but should now fall quickly according to the central bank. In domestic politics, there appears to be some rapprochement between Erdogan and the opposition.
Russia-Update
Russia has advanced to 4th place in the global ranking of economic output (by purchasing power parity). In the meantime, the USA has imposed new, secondary sanctions, mainly to limit Russia’s foreign trade.
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.
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
After the USA, the EU is also taking more of a stance against Beijing. Economic performance is better than expected overall, but there’s good news and bad news. Chinese equities suffer a slight setback following gains in previous months.
India-Update
PM Modi and his party win the parliamentary elections as anticipated, but unexpectedly miss out on an absolute majority of the seats. The equity market fluctuated quite sharply for a short time and has thus digested the election results.
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
News in Brazil was dominated by a 100-year flood, which makes the outlook for inflation and growth more uncertain.
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.