Debt Rattle For Developed Markets, Birth For Emerging Markets

Kubra Cavus/E+ by way of Getty Photos

“Fiscal dominance”, a defining EM time period, is driving markets, leading to many DMs dealing with increased charges and weaker currencies, whereas quite a few EMs are dealing with decrease charges and stronger currencies.

Overview

In February, the VanEck Rising

Common Annual Whole Returns (%) as of February 28, 2023
1 Month 3 Month YTD 1 Yr 3 Yr 5 Yr 10 Yr
Class A: NAV (Inception 7/9/12) -2.83 4.93 2.05 -2.58 0.09 0.89 0.15
Class A: Most 5.75% Load -8.42 -1.10 -3.82 -8.18 -1.87 -0.29 -0.44
Class I: NAV (Inception 7/9/12) -2.78 4.85 1.87 -2.36 0.35 1.19 0.45
50 GBI-EM GD / 50% EMBI GD -2.69 2.20 0.95 -7.33 -4.68 -1.80 -0.02

Common Annual Whole Returns (%) as of December 31, 2022
1 Month 3 Month YTD 1 Yr 3 Yr 5 Yr 10 Yr
Class A: NAV (Inception 7/9/12) 2.82 10.32 -7.73 -7.73 -0.64 0.67 0.27
Class A: Most 5.75% Load -3.09 3.98 -13.04 -13.04 -2.58 -0.52 -0.33
Class I: NAV (Inception 7/9/12) 2.93 10.43 -7.21 -7.21 -0.30 1.00 0.59
50 GBI-EM GD / 50% EMBI GD 1.24 8.30 -14.73 -14.73 -5.64 -1.85 -0.17

Exhibit 1 - Global Policy Rate Changes - From COVID Min to Post-Pandemic Max, bps

Supply: VanEck Analysis; Bloomberg LP. Knowledge as of March 8, 2023.

Exhibit 2 - Fed Operating Loss

Supply: Bloomberg LP. Knowledge as of March 8, 2023. Previous efficiency is not any assure of future outcomes.

Exhibit 3 - Eurasia is Globalizing/West is De-Globalizing