EM equity portfolios at risk from North Korea tensions
South Korea has a 15.61% weighting in MSCI's emerging-market equity index, making institutional investors vulnerable to any military escalation between the US and North Korea.
![EM equity portfolios at risk from North Korea tensions](https://cdn.i.haymarketmedia.asia/?n=asian-investor%2Fcontent%2FUS%20-%20North%20Korea.jpg&c=1&h=677&q=100&v=20243601&w=1204)
A US-North Korean war would have a big impact on institutional emerging-market equity portfolios, given South Korea's chunky weighting in EM benchmarks.
Asset owners globally had $220 billion of exposure to South Korean stocks via active fund managers as of the second quarter of this year, according to data provider eVestment. Those in Chinese, Indian and Taiwan – and of course South Korea – own the biggest allocations. (Globally fund houses report $36 trillion worth of actively m…
Please sign in or register
for free access to 1 article per month from AsianInvestor’s content and archives of over 16,000 articles.
¬ Haymarket Media Limited. All rights reserved.