Watch as Senior Portfolio Manager, Nigel Bliss, reviews the international equity markets, highlighting the impact of strong currency gains and opportunities in Japan.
Increasingly, many investors are questioning the need to allocate capital to non-US equities. This raises a crucial question: are there compelling reasons to diversify internationally? In this paper, we will explore the arguments for investing in markets outside the US.
While emerging markets face an uncertain economic and political landscape, we remain optimistic about long-term prospects, especially in undervalued markets.
The recent performance of equity markets has been marked by a stark divergence between the US and the rest of the world, significantly inflating the premium attached to US equities.
According to our valuation standards, Local Currency EMD benefits from high PRYs and attractive currency valuations while Hard Currency EMD is tainted by very low credit spreads and an overvalued US dollar.
The last 15 years have been challenging for EM returns, especially when compared to the MSCI World Index, and even more so versus the S&P 500. However, there are several compelling reasons to consider EM equities.
Mondrian is an employee owned investment management firm with offices in London, Philadelphia and Singapore. We are value investors across the globe in both equity and fixed income asset classes. Founded in 1990, we have employed a rigorous fundamental research process that is the foundation of our success. Mondrian’s well resourced investment team manages assets on behalf of over 250 institutional clients.
© 2025 Mondrian Investment Partners Limited is authorized and regulated by the Financial Conduct Authority – Firm Reference Number 149507. All information is as of December 31, 2023 unless otherwise noted.
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