Best Emerging Markets Paper 2020

IMF wins Best Emerging Markets Paper 2020

It's been a tough year for the global economy. In Asia, where the coronavirus pandemic began, the IMF predicts a growth rate of -2.2%. However, the economic fundamentals that make emerging markets an attractive asset class remain, as seen by China’s faster-than-expected rebound. The winning paper in this category, authored by the IMF, takes a broad but detailed look at Asia’s multispeed recovery. Alongside some excellent analysis and practical suggestions for governments to consider, it warns that the recovery is not without risks.

WINNING PAPER: IMF

Navigating the Pandemic: A multispeed recovery in Asia (IMF, Oct 2020)

This 35-page report by the IMF provides detailed analysis of the impact of this year’s recession on different Asian economies. It examines the multispeed recovery that’s taking place in the region and explores how governments can ease lockdown restrictions. The report also highlights some of the potential risks that policymakers might face, such as rising inequality and social unrest. With the pandemic still far from over, the authors suggest that policy support should be sustained, and in some cases, increased.

HIGHLY COMMENDED PAPERS

The Shifting Dynamics in Emerging Markets Local Currency Investing (PGIM Fixed Income, Oct 2020)

As a relatively high-yielding asset offering long-duration bonds across several high-quality countries, EM local currency debt should, in theory, attract investors in their droves. However, pension funds and other liability-driven investors have until recently shunned this particular asset class. This paper by PGIM Fixed Income examines some of the reasons for the shifting dynamics and focuses particularly on the role of FX in this.

Emerging Market Fixed Income: Characteristics of the asset class (FTSE Russell, May 2020)

This 21-page paper by FTSE Russell presents a helpful outline of the development and characteristics of the emerging market fixed income asset class. The authors draw on FTSE Russell data that goes back to the 1980s. They find that although EM fixed income suffered major setbacks in 1997-98, it is now viewed very differently with investors increasingly allocating funds to it.

China’s Biopharma Industry Moves Closer to Inflection Point (Capital Group, Nov 2020)

For compliance reasons, this paper is only accessible in certain geographies

China’s biopharmaceutical industry is changing. With an ever-increasing opportunity set, Capital Group analysts believe that the industry is at an inflection point. Consumer demand, government reforms and ageing demographics are all fuelling innovation across a sector that is also opening up to foreign players. While the fundamentals are there, winning talent remains a major challenge.

ESG Investing in Asia: An invisible evolution (Manulife IM, 2020)

ESG awareness in Asia is growing but there are still major challenges. The region is the world’s largest emitter of greenhouse gases and investment funds that abide by global ESG standards account for a tiny 0.8% of the global whole (June 2020). But according to Manulife IM, important foundations are being laid. Crucially, the growing sustainability drive could unlock compelling opportunities for fixed income investors.

2020 China Rankings: The top foreign fund management firms (Z-Ben Advisors)

In recent years, the Chinese fund management industry has been opening up to foreign firms. This report by Z-Ben Advisors examines which global managers have been making inroads into the country. It delves into three business channels – onshore fund management, inbound and outbound – to provide a comprehensive list of how they’re fairing relative to each other. The report also briefly discusses some recent regulatory developments.

China Fixed Income: Investing in a new world (UBS AM, 2020)

Global bond investors are paying more attention to China these days. The country’s fixed income markets are integrating with the world economy much more and this paper makes the case for adding this unique asset class to investors’ portfolios. It also describes the impact of some key structural shifts such as the RMB’s rise as a reserve currency, changing demographics and the growing pensions sector.

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ABOUT THE SAVVY INVESTOR AWARDS

The Savvy Investor Awards celebrate the best content from across the global institutional investment industry. We present awards across 14 different categories including the best overall paper.

Every year our Content Team handpicks and uploads over 10,000 articles and papers to the Savvy Investor platform. This library, alongside engagement data from 50,000+ members, means our judges are well-placed to identify and assess the award-worthy papers of 2020. The Awards are judged on many elements including the depth, quality, readability, and of course, appeal and relevance to our institutional investor audience. In a world saturated with content, and where it’s difficult to cut through the noise, it is a great pleasure to highlight quality, cutting edge, and deeply engaging thought leadership for the investment community.

As the leading content hub for institutional investors, the Savvy Investor Awards were designed to help to affirm or establish authors and firms as true thought leaders within the industry.


READ MORE ON EMERGING MARKETS

Check out the latest thinking on investing in emerging markets, including featured papers and Q&As with prominent industry experts in our Special Report “Emerging Market Debt Outlook: Risks and opportunities”.


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