Listen to the Discussion on Ujjivan Finance Q4 Results for 2016-2017 with Purnartha MD Rahul Rathi and Research Team. A Conference Call Recording can be played here
Purnartha MD , Rahul Rathi was felicitated recently in an event organised by CNBCTV 18 and Reliance Mutual . The awards were presented to fund managers for creating an impact by their game changing investment philosophy and delivering phenomenal returns.
Seen receiving here the award on behalf of Mr Rahul Rathi is Purnartha Team Member Saurav Jain Jain.
Economic Times Features Purnartha Team Member Riya in todays ET Wealth Issue. She voices her belief in Long Term Investing in the Cover Story, Why Women are Better Investors. Happy Womens Days in Advance!
Emerging markets were expected to suffer the most from Donald Trump’s election victory, but developing-world assets have been among the biggest winners so far this year.
Emerging-market currencies, bonds and shares fell sharply on Mr. Trump’s November election victory, as investors anticipated rising U.S. interest rates, a stronger dollar and more barriers to trade.
Many investors now believe that the worst is priced in. They are, instead, focusing on the benefits for developing countries of strong global growth, near-record-low valuations and rising commodity prices.
The MSCI Emerging Markets Index of stocks has gained around 7% this year through Monday, more than double the gains of the S&P 500. The MSCI China stock index is up around 4% since the election. In currencies, Brazil’s real is now stronger than it was before the vote and even the Mexican peso, which has been particularly sensitive to Mr. Trump’s rhetoric, has rallied in recent weeks.
“Much of what Trump is promising to do has already been priced in and chances are that he under delivers” on promises like a border tax, said Jan Dehn, head of research at emerging-markets asset manager Ashmore Group. “This in turn means…a less hostile environment for emerging markets.”
Still, big risks remain, not least if commodity prices fall again and Mr. Trump follows through on policies such as increased tariffs.
For now, though, investors like Tim Love are seeing good returns. The emerging-markets investment director at GAM Holding says his best trades this year include buying the shares of Russian aluminum giant United Co. Rusal PLC and Brazil’s Banco do Brasil SA.
“Emerging-market assets were already too low…then Trump came in and they were pummeled further. [So] emerging markets are now the ugly duckling on the market,” said Mr. Love, whose firm manages $120 billion. “It’s worth taking a few more bets.”
Money managers poured $1.4 billion into emerging-market equities in the week to last Wednesday, the most in 16 weeks, according to data provider EPFR Global. Investors have also warmed up to emerging-market bonds, with inflows to debt funds rising for four of the last five weeks, according to EPFR data.
In the weeks after the U.S. election, investors yanked more than $5 billion from emerging-market equity funds.
Much of that money returned to the U.S. as Mr. Trump’s talk of fiscal spending and tax cuts sparked a rally in stocks and sent yields on Treasurys sharply higher.
Expectations for higher interest rates rose, which then pushed up the dollar. Higher U.S. interest rates and a stronger greenback are typically bad news for emerging markets, whose debt and commodity exports are often denominated in dollars.
The Trump trade has shown signs of waning. The dollar, for instance, is now down more than 1% since the beginning of the year.
As that trade turns, investors are having another look at emerging markets.
They have other reasons, too. The prices of commodities like metals and sugar have risen and oil has stabilized above $50 a barrel.
Big commodity producers like Russia are benefiting. The International Monetary Fund expects that country’s economy to expand by 1.1% this year after two years of recession.
The IMF expects emerging economies as a whole to grow by 4.5% this year, up from 4.1% last year and more than double the rate in advanced economies.
In Asia, companies are signaling that earnings have stabilized, said Rahul Chadha, co-chief investment officer at South Korea’s Mirae Asset Global Investments, which manages $90 billion. Corporate earnings in Asia had fallen for several years.
“As people see earnings upgraded and all this rhetoric on protectionism [by Mr. Trump] gives way to more practical solutions, I think the flows are going to come here,” said Mr. Chadha.
For the first time in five years, Mr. Chadha recently went overweight Korean equities, meaning he aims to hold a larger share of them than a benchmark portfolio would suggest.
Emerging-market stocks are also coming off a low base. They have underperformed against their developed-world peers for more than two years, dragged lower by weak commodity prices, the higher dollar and worries about the consequences of Mr. Trump’s “America First” platform.
Share-market valuations, measured by the price-to-earnings ratio, in developing countries are close to their lowest levels on record, according to data going back to 2005 by the Institute of International Finance. Valuations on mature markets are near their highest since 2008, according to the IIF.
“Combine [rising commodity prices] with much cheaper valuations plus the lack of upside in developed markets and…well, that all adds up to a compelling investment proposition,” said Ashmore’s Mr. Dehn.
Some investors, however, are still cautious given what they see as the difficulties in predicting Mr. Trump.
“I wouldn’t want to give the all clear,” said Richard Segal, emerging-market analyst at Manulife Asset Management, which manages $343 billion.
“Protectionism could be around the corner and we are always one social media message away from problems with Mexico or China,” Mr. Segal said.
Here’s a quick list of trading holidays for NSE, BSE and CNX.
Trading Holidays for NSE, BSE & MCX
|1||Republic Day||January 26, 2017||Thursday|
|2||Mahashivratri||February 24, 2017||Friday|
|3||Holi||March 13, 2017||Monday|
|4||Ram Navami||April 04, 2017||Tuesday|
|5||Good Friday||April 14, 2017||Friday|
|Dr.Baba Saheb Ambedkar Jayanti||April 14, 2017||Friday|
|6||Maharashtra Day||May 01, 2017||Monday|
|7||Id-Ul-Fitr (Ramzan Id)||June 26, 2017||Monday|
|8||Independence Day||August 15, 2017||Tuesday|
|9||Ganesh Chaturthi||August 25, 2017||Friday|
|10||Mahatama Gandhi Jayanti||October 02, 2017||Monday|
|11||Diwali-Laxmi Pujan*||October 19, 2017||Thursday|
|12||Diwali-Balipratipada||October 20, 2017||Friday|
|13||Christmas||December 25, 2017||Monday|
*Muhurat Trading is expected to be conducted on Thursday, October 19, 2017 (Diwali- Laxmi Pujan).
Thank you for attending the conference call on, “Impact of Demonetization and US Elections Result” held on 15th & 16th November 2016 at www.purnartha.com
In case you missed its do listen to the audio recording for our insights. Click Play Button
Purnartha celebrated the advent of the festive season with a bang this October. It’s being a great year for all Purnartha portfolios and our excitement is heightened by the new office for our team in Pune. We called upon all to celebrate with a Puja and Dinner Evening on 21st October. We hope you were there too. In case you missed it, here’s a sneak peek into the fun filled evening.
Our MD, Rahul Rathi greeted all with his family. Rahul enthralled the guests with his unique insights and witty style.
As the evening became cooler our guests got to interact with our top management.
Dilip Apte, Director of Sales and Operations, graciously welcomed the guests exuding gentlemanly charm. He impressed everyone with his talk that showed his experience.
Hemant Vispute, our Executive Director was seen beaming to all the guests with his smile.
Our guests couldn’t hold back their enthusiasm as they got a taste of good music as well as a delicious buffet spread that everyone kept coming back to. And while they were at it, they bumped into some of our key Sales and Operations team members.
The banter became more cheerful with everyone from the Customer Support Team showing off their finest and receiving accolades directly from the clients.
The evening reached its peak as our MD, Rahul assured everyone that he looks forward to even more celebrations and a great year ahead.
We hope you too enjoyed as much as we did. Do tag yourselves if you were there in the pictures and do keep an eye on our mailers as we may soon invite you for yet another fun filled evening!
Do check some more pictures here>>
Clear Unbiased Equity Research to Help You Generate Highest Long Term Returns.
On Women’s Day Here’s a Quick Look on How Women are Wealth Builders for Tomorrows Generations