‘As super-cycle ends, 2023 will be fat and flat’
Looking ahead to 2023, emerging market funds specialist East Capital has positioned itself for a period of “fat and flat” returns in the belief that 2022 has likely marked the end of a lucrative super cycle fuelled by ultra-low interest rates and abundant liquidity.
Fresh sanctions put Russia ETFs on liquidity watch
Mutual funds and ETFs investing in Russian stocks and bonds posted unprecedented losses last week after Russian president Vladimir Putin decided to invade Ukraine. Managers of emerging market funds with Russia exposure are now also closely watching the effects of potential withdrawals and may face liquidity challenges now that the EU and US have collectively decided to remove Russia from the international payments network Swift.
Future of 855 Russia funds, ETFs uncertain
The future of some 855 funds with exposure to Russia is shrouded in uncertainty as the turmoil in Russia’s financial markets continued on Monday. JP Morgan AM and Prosperity on Monday suspended their funds with assets in Russia. East Capital warned of “a very high level of disruption”. Asset managers are facing requests for information from their regulators.