Investment Adventures in Emerging Markets

A View from Mexico on a New North American Trade Pact

A new historic agreement to replace the North American Free Trade Agreement (NAFTA) was recently struck between the United States, Mexico and Canada. In the United States, the new deal is officially called the United States-Mexico-Canada agreement, or USMCA. For Mexico, the Spanish translation has yet to be determined. Franklin Local Asset Management Mexico, Fixed Income team answers some questions about the implications of the new agreement for the country.

Not All Emerging Markets Are Equal
Perspective

Not All Emerging Markets Are Equal

“We find a disconnect between the negative sentiment permeating the market and positive EM equity fundamentals, including rising cash flows, improving capital-allocation discipline, corporate deleveraging, healthy earnings and discounted valuations.” - Manraj Sekhon and Chetan Sehgal, Franklin Templeton Emerging Markets Equity

Four Reasons Why We Think Emerging-Market Fears Are Overblown
Perspective

Four Reasons Why We Think Emerging-Market Fears Are Overblown

Our investment leaders from Franklin Templeton Emerging Markets Equity explain why they think recent concerns about the asset class are overblown.

EM Index Inclusion Could Spell A New Chapter for GCC Bonds
MENA Region

EM Index Inclusion Could Spell A New Chapter for GCC Bonds

“The recent announcement that Gulf Cooperation Council (GCC) countries are planned to be included in the Emerging Market Bond Index (EMBI) is an exciting milestone not only for the region, but for the wider fixed income universe, in our view.” - Dino Kronfol, CIO, Franklin Templeton Global Sukuk and MENA Fixed Income Strategies

August Recap and Outlook: Finding Opportunities in Volatility
Perspective

August Recap and Outlook: Finding Opportunities in Volatility

Market volatility marked the month of August, with sharp declines in the Turkish lira and Argentine peso souring investor sentiment for emerging markets overall. Manraj Sekhon, CIO of Franklin Templeton Emerging Markets Equity, and Chetan Sehgal, senior managing director and director of portfolio management, present the team’s overview of the emerging-markets universe in August and why they don’t see the asset class heading for a severe crisis.

Views on Emerging-Markets Equity and Select EM Countries
Perspective

Views on Emerging-Markets Equity and Select EM Countries

In light of the Turkish lira and Argentine peso currency drops, fears of emerging-market (EM) contagion appear to be on the rise, and various EM currencies have been under pressure. Here, Franklin Templeton Emerging Markets Equity provides perspective on some of the impacted countries in the headlines recently: Argentina, Turkey, South Africa and Indonesia. In the team’s view, current EM weaknesses in select countries is not likely to result in macroeconomic contagion or broader asset-class crises.

Trade Turmoil Doesn’t Derail Our Outlook for India
Asia

Trade Turmoil Doesn’t Derail Our Outlook for India

Trade tensions have spooked investors in recent months, including those in India’s stock market. Franklin Templeton Emerging Markets Equity’s Sukumar Rajah weighs in on the positive economic fundamentals he and the team see, and why they think India’s equity market should be able to weather recent challenges.

July Recap and Outlook: Frontier Markets Lead Rebound
Perspective

July Recap and Outlook: Frontier Markets Lead Rebound

July marked the first month of the calendar year where emerging markets posted positive performance overall, with frontier markets leading the way. Manraj Sekhon, CIO of Franklin Templeton Emerging Markets Equity, and Chetan Sehgal, senior managing director and director of portfolio management, present the team’s overview of the emerging-markets universe and three things on their mind in particular today.

Of Currencies, Trade and Other Clouds
Perspective

Of Currencies, Trade and Other Clouds

Emerging markets have struggled in the first half of this year amid a storm of uncertainties. Franklin Templeton Emerging Markets Equity’s Chetan Sehgal examines issues that have acted as clouds on the asset class—including a stronger US dollar and trade skirmishes—and highlights some positive longer-term fundamentals. He thinks some of the concerns are overblown.

Unlocking Romania’s Potential
Frontier Markets

Unlocking Romania’s Potential

Romania’s ambition to gain emerging-market status has not gone unnoticed, with its efforts rewarded in placement on FTSE’s “watch list”. Our Johan Meyer shares what he thinks it could take for Romania to make the cut.

Mexico’s AMLO: A New Kind of Populist
Asia

Mexico’s AMLO: A New Kind of Populist

The victory of leftist candidate Andrés Manuel López Obrador in Mexico’s presidential election shows populism can come in a variety of forms. Franklin Templeton Emerging Markets Equity’s Santiago Petri and Gustavo Stenzel offer their thoughts on what’s next for Mexico and its new president.

Emerging Markets Suffer Second-Quarter Setback
Perspective

Emerging Markets Suffer Second-Quarter Setback

Emerging markets suffered a setback in the second quarter, but Manraj Sekhon, CIO of Franklin Templeton Emerging Markets Equity, and Chetan Sehgal, senior managing director and director of portfolio management, don’t see a fundamental derailment.