At a time of heightened global political risk, Eurasia Group and Nikko Asset Management are partnering to bring together Eurasia Group’s proprietary geopolitical risk indicators within Nikko Asset Management’s multi-asset investment management process. The partnership will offer global investors a risk-controlled means of getting exposure to emerging markets.
Their new approach to risk management is detailed in our white paper Political Risk and Emerging Market Investing: An Innovative Multi-Asset Approach. Macro-political risks in emerging markets have increased since the 2008-2009 Global Financial Crisis, reflecting the growing importance of top-down analysis in managing emerging market portfolios.
Given the increasing frequency and intensity of political-economic crises, a more systematic method of measuring political risk and evaluating its impact on market prices is required for emerging markets. A central thesis of investing in emerging markets assets is that given volatility and dispersion in these markets, there are better opportunities for risk-adjusted returns through a multi-asset approach.
Views on the current health of the Chinese economy differ widely, but it’s hard not to be impressed by the progress the country has made in the last 20 years. Gross domestic product (GDP) per capita has risen more than ten-fold to around US$8,000 over this period, with much of this growth occurring in the […]