mast image

Special Report

Impact investing

Sections

Mobius sees ageing pressure in emerging markets

GLOBAL – Mark Mobius, Franklin Templeton’s emerging markets guru, says demographics are going to play a big role in emerging markets in the long term.

Mobius said declining birth rates and the demise of the traditional ‘pyramid’ demographics, where there are more young than old people is set to “be a big factor in these markets going forward”.

He told a briefing in London this week that the old-age dependency ratio in China, for example, is increasing more and more.

“You’re going to get a bulge,” in the demographic profile, he said in response to a question from IPE.

He pointed to the Chinese government’s decision to open up the pension market – which has led to western firms such as ING becoming involved.

“It’ll be great for us. The pension funds will grow, so will the markets,” he said, citing the Chilean example. The privatisation of pension funds would see a shift from government bonds to equities, he added.

Earlier this week Standard & Poor’s said asset managers are still bullish about the long-term prospects of emerging markets.

“This optimistic stance comes at a time when global emerging markets have marked their third consecutive year of strong absolute returns and the fifth in which they have outpaced developed markets,” it said.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<