Emerging Markets Webcast Available On-demand
October 17, 2016
The opportunistic use of convertible securities, revenue mapping and high quality emerging market equities are three levers that can be used to address the risk of investing in emerging markets.
At a webcast earlier today, Nick Niziolek, CFA, Co-CIO, Head of International and Global Strategies, Senior Co-Portfolio Manager, and Todd Speed, CFA, Senior Vice President, Portfolio Specialist, elaborated on:
The growing importance of Asia ex-Japan in the $300 billion global convertible market, with some specifics on how convertibles are used in a portfolio
How revenue mapping (investing in developed market companies with 50% or more revenues/assets from emerging markets) widens Calamos’ opportunity set
Calamos’ view that expanding economic freedoms are one of the most powerful catalysts for economic growth and investment opportunity
The presenters also provided an update on emerging markets’ recent performance, valuations and emerging markets’ historical performance when rates have risen.
The webcast, which was presented by Advisor Perspectives, can be watched here.
Convertible Securities Risk: The value of convertible securities is influenced by both the yield of non-convertible securities of comparable issuers and by the value of the underlying com¬mon stock. The value of a convertible security viewed without regard to its conversion feature (i.e., strictly on the basis of its yield) is sometimes referred to as its “investment value.” A convertible security’s investment value tends to decline as prevailing interest rate levels increase. Conversely, a convert-ible security’s investment value increases as prevailing interest rate levels decline.
Foreign Securities Risk: Risks associated with investing in foreign securities include fluctuations in the exchange rates of foreign currencies that may affect the U.S. dollar value of a security, the possibility of substantial price volatility as a result of political and economic instability in the foreign country, less public information about issuers of securities, different securities regulation, different accounting, auditing and financial reporting standards and less liquidity than in U.S. markets.
Emerging Markets Risk: Emerging market countries may have relatively unstable governments and economies based on only a few industries, which may cause greater instability. The value of emerging market securities will likely be particularly sensitive to changes in the economies of such countries. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluations, which could hurt their economies and securities markets.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.