portfolio investment

By Gerardo Rodriguez of BlackRock

It is no secret that emerging economies have evolved enormously over the last decade: stronger institutions, sounder macroeconomic policies and resilient banking sectors have enabled local financial systems to develop in an unprecedented manner. This has helped a majority of these countries to turn the page on past crises and become much more attractive places to invest.

But the picture is now changing. As monetary policy in the US approaches an inflection point and the dollar strengthens, this new world order is being put to the test. Indeed, the market correction that began this spring is a good reminder of the complexity and variety of these many markets. Read more

By Aly-Khan Satchu of Rich Management

It was Vinod Khosla, who bagged a billion at Sun MicroSystems in Silicon Valley, who said, ‘The future is not seen in the rear view mirror.’

I started my journey from Mombasa, spent half my life in the City of London running interest rate trading desks, packed my bags when I turned 40 and returned home in 2005. Read more

Mexico has turned the tide on foreign direct investment. Or, at least, so it seems. There are plenty of eddies in the rock pools.

Last year, foreign companies invested $12.7bn in Mexico, down from $21.5bn in 2011, the central bank reports. But Mexican companies invested $25.6bn overseas in 2012, more than double the $12.1bn reported in 2011. Read more

With interest rates stuck at historic lows in South Africa, unit trusts have had something of a boom over the past 6 to 8 months as investors turn from cash to unit trusts and other collective investment schemes. According to the Association for Savings and Investment SA (Asisa), the local collective investment industry attracted a record net inflow of R120bn ($13.6bn) in 2012. Read more

Hot money are two words that would usually make central bankers cringe. Not in Nigeria though.

Even as foreign inflows into the country hit a two-year high in January, the central bank said it was not concerned about the risks arising from this potentially volatile influx – though that might change if flows continue to grow at their current pace. Read more

Mali’s economic isolation is helping west African rated sovereigns avoid revisions to their creditworthiness, said Standard & Poor’s in a note released on Thursday night covering Benin, Burkina Faso, Ghana, Morocco, Nigeria, Senegal, and Tunisia

FDI and portfolio flows between Mali and its neighbours are small and regional capital markets are underdeveloped. Trade and investment linkages are weak due to tariffs, poor infrastructure, low incomes and inefficient customs procedures. Read more

Loads has been written about Russia’s entry to the World Trade Organisation, for and against.

So investors might be forgiven for pushing aside the latest 33-page offering from Chris Weafer, the chief strategist at Troika Dialog.  So here is a summary from beyondbrics that focuses on what matters to fund managers – Weafer’s pick of the winners and losers among Russian companies after the country is formally joins the global trading club next week. Read more