Decoupling of DM from EM an ongoing trend, latest Axioma research suggests

A review of investment trends through 2013 into 2014 by Axioma points to a continued decoupling of developed markets from emerging markets across asset classes.

The view is contained in the latest Axioma Insight: Quarterly Risk Review. It states that European, US and North American markets saw levels of risk fall through the past year. But emerging markets underperformed developed markets.

“Lower correlations, along with the changes in risk geographically, resulted in investors becoming much more discriminating,” said Melissa Brown, senior director of Applied Research at Axioma.

“In the absence of a single overarching theme driving returns, investors placed their 2013 bets based on the individual merits of countries and individual assets within countries. Since year-end, correlations have risen somewhat, although at this juncture they are still low relative to historical levels”

For Axioma’s latest view on European markets specifically, read the analysis here: [asset_library_tag 7477,Q4203 Risk Review Europe]

 

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