The EMD Minute: Countries like China and Saudia Arabia are investing directly in physical assets and companies across EM
Countries’ efforts to secure raw materials, energy and food are boosting the outlook for companies that supply these critical resources.
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Portfolio Manager Autumn Graham of Schroders Emerging Market Debt Team shares one of the themes that is creating opportunities for investors today.
Major economic powerhouses like China, Saudi Arabia and the UAE (United Arab Emirates) are making direct investments into physical assets and companies across emerging markets. They are buying to secure the raw materials, energy and food that are critical for their countries’ futures.
Various disruptions in global trade have shown governments that imports cannot always be relied upon due to weather events or political conflicts, for instance. Chinese and Middle Eastern companies are buying copper assets in Zambia because copper is critical for the global energy transition. Saudi Arabian investment companies are buying stakes in Brazilian meat exporters because Saudi Arabia relies on imports for 70% of its red-meat consumption.
This is a key investment theme that EM debt investors can explore.
View other videos in the EMD Minute series. Read 7 reasons to not overlook emerging market debt for an overview of how major trends have reshaped the EM landscape and why some assumptions about the asset class may no longer apply.
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All investments involve risk, including the loss of principal. The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.
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The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.
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