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Investment opportunities in emerging markets
The aim of this course is to introduce participants to the most important aspects of investing in emerging markets. There is no doubt that many emerging markets offer excellent opportunities for investors to enhance the returns on the portfolios. But these opportunities are not without their risks. We identify the key macroeconomic and financial market themes that investors need to keep in mind when investing in these markets. But just as importantly we explain how investments in emerging market economies can be integrated into a broader investment strategy.

The course begins by taking a close look at the economic trends of the past few years in emerging markets and the likely trends going forward. These trends will determine the relative performance of each emerging market and also each asset class within that market. Crucially, the performance of these markets will depend upon the success, or otherwise, of both monetary and fiscal policy. A failure of policy can lead to the sort of crisis seen in South East Asian economies in 1997, so the ability to understand whether policy is likely to lead to stability or to instability is a crucial question that needs to be addressed. As part of the course we take a close look at the causes and consequences of the two most recent emerging market crises: the South East Asian crisis of 1997 and the Russian debt crisis of 1998. Having addressed the broader economic background we focus on identifying investment opportunities and themes in both the equity markets and in the sovereign bond markets too. We consider their past performances and their likely future performance too, and give participants a framework for identifying sectors that offer particular investment promise. We end the course by showing how an emerging market investment strategy might be integrated into a broader investment strategy.

This course has been designed to run over one full day. The learning experience is enhanced through class discussion and through the use of case studies, so that the course material can be placed into a practical and context. The course will also show how to build an investment portfolio consisting of emerging market assets classes.


Economic background Outlook for growth Inflation trends Trade & exchange rates Political risks Macroeconomic policy Monetary policy Fiscal policy Role of the IMF and the World Bank Emerging market crises Case study 1: South East Asian crisis Case study 2: Russian debt crisis Summary of risks inherent in investing in emerging markets Equity investing in emerging markets Structures of equity markets Performance and outlook Investment themes Investing in debt in emerging markets Sovereign emerging market debt Structures of equity markets Performance and outlook Investment themes Role of emerging market assets in wider investment portfolios Risk and return considerations Portfolio construction Identifying profitable investment opportunities

For more information on this or other Fathom courses visit us at our website.