Webinar with American Century Investments

Thursday, 19 January 2023, 16:00

Webinar with with Nathan Chaudoin, Vice President and Senior Client Portfolio Manager at American Century Investments

Opportunities for EM in 2023

While there has been volatility in the asset class, EM risks in Q1 were largely from outside rather than within given Fed uncertainty and DM bank stress.
China’s economic recovery and an improvement in the global semiconductor and technology cycle should drive earnings estimates steadily higher through 2023 (while earnings are contracting in the US).
Economic activity continues to fare relatively better compared to DM, thanks to the ongoing reopening process of the Chinese economy that is expected to bring support to many emerging economies through goods and services exports.
The latest set of soft data releases, such as PMIs, are already pointing to an outperformance of EM economies over their developed peers.

In summary, the EM outlook remains supported by China’s reopening, the widening EM-DM growth differential with additional optionality from USD weakness and the peak in US interest rates. Technicals also remain supportive (valuation, positioning). Finally, the EM tightening cycle is near its end, with a handful of economies delivering final hikes at upcoming meetings. Lower EM policy rates into 2H23 is critical on two fronts for equities: they broaden the EM growth story into 2024 beyond China while improving the relative attractiveness of equities to bonds.

Webinar Agenda:
4:00 – 4:20 CET Investment Outlook for 2023
4:20 – 4:50 CET Finding Opportunities in Emerging Markets
4:30 – 5:00 CET Q&A Session

Speakers
Nathan Chaudoin
Nathan Chaudoin is vice president and senior client portfolio manager for American Century Investments. He is a member of the Global Growth Equity group and is responsible for communicating global and non-U.S. equity investment strategies and results to the firm’s clients and consultants. Nathan joined American Century Investments in 2014. Previously, he was with HSBC Global Asset Management, most recently as a senior emerging markets product specialist. He has worked in the investment industry since 2000.