How might asset allocators adapt when a giant emerges?
China’s emergence onto global markets could substantially change existing portfolios.
The country’s weight in major benchmarks across both equities and fixed income has been growing incrementally but is relatively small. Is this the right way to gather exposure to China?
When a giant emerges, whether making a separate allocation or relying on index weights, allocators will be making a major allocation decision. In this paper, we provide a practitioner’s guide on how China might fit into existing portfolios.
All investments carry the risk of capital loss and past performance is not a reliable indicator of future results. Emerging market: Some countries may have less developed legal, political, economic and/or other systems. These markets carry a higher risk of financial loss than those in countries generally regarded as being more developed.