Allocator sentiment Q3: European buyers turn cautiously positive on emerging market debt
Our latest panel of 140 fund buyers shows the strongest net-positive reading on hard currency EMD since 2021, while US large-cap enthusiasm cools.
Sofia Lindqvist, Head of Research
6 min read
European fund buyers have become noticeably more constructive on emerging market debt, according to the third-quarter edition of the Allo Allocator Panel.
Key findings
- Net 34% of respondents plan to increase hard currency EMD exposure over 12 months
- US large-cap equity intentions fell to net 8%, from net 27% in Q2
- Private credit remains the most-cited growth area among DFMs
- Thematic equity continues to see net outflow intentions
“The carry is simply too attractive to ignore when developed market duration still feels crowded.”
Respondents were drawn from private banks, discretionary fund managers, fund-of-funds teams, pension schemes and insurers across nine European markets.
Get stories like this every week
Join the allocators and fund industry professionals who read the allo weekly briefing. Signing up also creates your free allo account.