Emerging World: A Review of Geopolitical Risks for Emerging Markets
Report Summary
Emerging World: A Review of Geopolitical Risks for Emerging Markets
Higher volatility levels suggest that emerging markets’ undervaluation is due in part to heightened geopolitical risk.
Boston, August 12, 2015 – After years of growing popularity as viable investment allocation options, emerging and frontier markets are now nearly ubiquitous investment options in 2015. They are tracked by hundreds of indices, and most internationally focused asset managers offer emerging and frontier market strategies. Market performance in the developing world is highly sensitive to geopolitical risk, however. As developed markets continue to recover and emerging ones are at risk for political and economic destabilization, what factors might prove disproportionately risky to market performance and volume?
As part of Aite Group’s series on emerging markets, this research provides an overview of the current geopolitical risks that may impact emerging markets within the next 12 months. It is based on an amalgamation of publicly available information, market data, and industry interviews.
This 18-page Impact Note contains 10 figures. Clients of Aite Group’s Institutional Securities & Investments service can download this report.