China's economy is following a path that is quite distinct from other emerging markets. Understanding the risk/return characteristics that define that path is key to thinking through the inclusion of Chinese assets in an institutional portfolio, including the consideration of a dedicated allocation to China.
Weighing Opportunities as the Market Opens
Emerging Markets Macro Strategist, Laura Ostrander, and Portfolio Manager Andrew Xiao, discuss EM equities headwinds as we head into the final quarter of 2021.
As quantitative investors, we focus on keeping a balance between the various elements that drive markets. In early 2021, China consumer stock prices and EPS estimates began to diverge.
The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
Responsible-Factor (R Factor) scoring is designed by State Street to reflect certain ESG characteristics and does not represent investment performance. Results generated out of the scoring model is based on sustainability and corporate governance dimensions of a scored entity.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Past performance is not a reliable indicator of future performance.
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Expiry date 11/30/2022