Boston - Emerging markets (EM) debt rebounded sharply in the fourth quarter of 2022, capping a challenging year on a positive note. The surge was driven by improvements in the macro backdrop including expectations that the U.S. Federal Reserve is nearing the end of its tightening cycle and encouraging developments in China, which dramatically reversed its zero-COVID policy. Attractive valuations in the sector also drew investors.
Eaton Vance offers unique perspectives and original research from portfolio managers and industry experts around the world.
WHO WE SERVE
- Sovereign Institutions
- Pension Funds
- Endowments and Foundations
- Global Financial Institutions
- Family Offices
- Fund Selectors
- Wealth Managers
Listed Infrastructure has Potential for Resilient Earnings and Strong Cash Flow
1. Most infrastructure companies have some form of inflation protection embedded into their contract structure.
2. An interest rate tailwind for valuations is likely if long-term interest rates peak and moderate.
3. We have started to move toward a more defensively positioned portfolio, lowering exposures to energy and certain aspects of transportation (for example, freight), while increasing investments in utilities and communications.
Opportunity Meets Necessity: The Essential Case for Genuine Carbon Impact Investing
1. We believe this is an opportune time to invest in growth companies driving the transition to a lower carbon economy amid a confluence of macroeconomic, regulatory and market factors.
2. Unprecedented levels of investment and innovation in climate startups in recent years has led to a deep and maturing pipeline of highly attractive, decarbonization focused growth-stage companies.
3. Asset owners and investment managers must be willing to think creatively about traditional fund mechanisms to meaningfully address decarbonization on a global scale.
Boston - As we begin 2023, the Emerging Markets Debt team leadership wishes to thank you — our investors and partners in the investment community. Last year was a challenging one for almost all global asset classes, including EM debt, which contended with a "perfect storm" of rising rates, stressed fiscal policies and risk-off markets. Your continuing support is especially appreciated in that kind of environment.