Emerging market investments are attractive despite turmoil in hotspots such as Venezuela, Edmond de Rothschild portfolio manager Stephane Mayer told finews.ch-TV.
Protests in the street in Venezuela and the aftermath of a coup last year in Turkey aren't shaking Edmond de Rothschild's faith in emerging market investments, fund manager Stephane Mayor told finews.ch-TV in an interview.
«In the long end or middle end of curve, look for bonds with a low dollar value because these bonds have a very low downside risk,» Mayor said of Venezuela. «So it makes sense to be invested in this part of the curve, but in a very cautious way –not to put a big bet on such uncertainties.»
Venezuela Strife
In Venezuela, hundreds of thousands have protested in recent months to demand elections of President Nicholas Maduro. Whether the leftist leader survives the widespread protests, which have killed more than 50 people, is unclear.
According to Mayor, a new government would quickly be scrutinized for reform efforts.
«The risk for a new government is can it go forward with the restructuring process, which is not the case with the Maduro administration. This can change the mind of investors,» Mayor said. «With all these uncertainties, I prefer a small investment with still high coupons which are interesting to be in, but not to be too loaded.»
