Our perspective on global micro event and strategies.
Adam helps lead our team of investment strategists globally. This team’s objective is to help our clients seek better investment outcomes by providing them with portfolio analysis, research, and tailored advice. Adam also invests as the portfolio manager for bespoke multi-manager investment solutions. As a strategist, he develops research on capital market and multi-asset themes, advises clients and prospects on a range of investment policy issues, and implements investment solutions for clients.
As China’s role on the world stage continues to loom larger, many investors are contemplating whether to separate the country from the rest of their emerging markets (EM) equity allocation. Most arguments for such separation are based on China’s fast-growing weight in broad EM equity benchmarks, but it’s not necessarily that simple. Let’s take a closer look.
We believe the key decision point here should not be China’s dominance of the EM indices, but rather, the extent to which a stand-alone China equity allocation can be viewed as similar (or dissimilar) to an EM ex-China equity allocation. If they are, in effect, more or less the “same thing,” then the relative size of one to the other will likely make…