Deepening Losses in Emerging Markets

This follows warnings yesterday from the Bank of England that the International Monetary Fund needs more resources and better tools to help emerging economies deal with the spill-over from slowing growth and future interest rate rises in advanced economies.

On the back of this, we would like to introduce you to our client Sun Global Investments, a leading emerging markets investment and financial securities firm headquartered in London with offices in Dubai and Mumbai.

Speaking on today’s developments in the emerging markets, Sanjiv Shah, Chief Investment Officer at Sun Global Investments, has said:

“The slowdown in China, reconfirmed by today’s poor manufacturing figures, is causing a sharp fall in Chinese stocks and in global commodity prices. Whilst emerging market commodity importers such as countries in South East Asia will benefit from lower commodity and oil prices, commodity producers such as Russia, Brazil, South Africa, Australia, Canada and South Africa will be hit the hardest as their assets and currencies plummet. As a result, the crisis has created fears about global growth prospects and so investors should be cautious about investing in emerging market assets, as further price declines and volatility are likely.
“Another worrying sign is that the VIX Index, which measures the volatility of the S&P 500 Index, has started rising again signalling a return of renewed price declines. For this reason, we would recommend investors in emerging markets to look at diversified bond and equity funds especially those with a focus on South East Asia and India. We would be more cautious on Brazil and Russia as their political problems seem deeply entrenched with little prospects of a timely resolution.”

Sun Global Investments was established in 2008 in the midst of turmoil in the financial services industry but, through identifying lucrative opportunities in emerging market corridors, has since emerged as a leader in BRIC investments.

The firm provides a full scope of services to institutional investors, corporate companies, family offices and high net worth individuals with established business areas in Securities Trading, Wealth Advisory, Corporate Finance and Fund Advisory, and of expertise in Fund Raising, Restructuring, Equities, Fixed Income, Fund Management and Real Estate.

In addition to his statement above, Chief Investment Officer of Sun Global Investments Sanjiv Shah can provide you with insightful commentary on:

• Investment opportunities and challenges in the emerging markets
• The impact of a US interest rate hike rate on the emerging markets
• The impact of China’s fall on the other emerging markets
• Which emerging markets are weathering the Asian storm
• What industries are currently ripe for investment in the emerging markets