This news service recently visited wealth managers in Paris to discuss their wealth and asset allocation views and their insights into the case for emerging markets. Along with a number of firms, Indosuez Wealth Management has announced that it will be launching a new range of active exchange-traded funds in Europe in the second half of 2026.
In an interview in Paris, Indosuez
Wealth Management and Comgest told this news service
that they are constructive on the outlook for emerging markets
which have been outperforming developed ones.
Chief investment officer (CIO) Alexandre Drabowicz at Paris-based
Indosuez Wealth Management said he has been upbeat about
emerging markets since 2024, despite geopolitical turbulence. He
favours AI and tech in Asia, which remain at reasonable prices
compared with the US. But, unlike asset manager Comgest and
many other firms, he does not invest in South Korea”s SK Hynix or
Taiwan Semiconductor Manufacturing Company (TSMC).
Drabowicz also likes commodities in Latin America, and is bullish
on copper. Silver, copper and tin are needed for artificial
intelligence, tech and renewables. He said the Middle East
conflict, which has caused oil prices to surge, has increased the
acceleration to renewable energy.
Drabowicz is overweight in emerging markets and the US market,
underweight in Europe and Japan. He is not big on French luxury
goods, saying that Chinese demand for them is weaker than it was.
Nick Payne, head of Comgest Global Emerging Markets Risk Database
(GEM) portfolios, is also constructive on emerging market
equities, notably on tech in Taiwan and Korea, and invests South
Korea’s Samsung Electronics and SK Hynix as well as TSMC.Tech is
usually cheaper in these countries than in the US, he said.
Payne is slightly underweight in South Korea and overweight
in Taiwan, Brazil and South Africa and India. Although India has
struggled in the last 18 months and is sensitive to higher oil
prices caused by the conflict, Payne told this news service that
good firms can still be found in India. He likes financials such
as Bajaj Finance and Shiriam Finance, two of India’s non-banking
financial companies. He also likes Capitec bank, a big South
African retail and business bank headquartered Stemmenbosch.
He is less keen on China, saying it is in a difficult spot, with
a big problem on domestic consumption. “It is not consuming
enough,” he said. Overall, Payne remains positive on the outlook
for emerging markets, arguing that they should benefit from a
weaker dollar.
A
number of firms such as Paris-based asset manager
Carmignac and
BNP
Paribas Wealth Management also remain upbeat on undervalued
tech-driven emerging markets.
On gold, Drabowicz has increased his exposure to the
“safe-haven” yellow metal in the summer.
ETFs
As many wealth managers expand their exchange-traded fund (ETFs)
range, Drabowicz said Indosuez Wealth Management is
launching a new range of Irish-domiciled active ETFs in
Europe in the second half of 2026, subject to regulatory
approval.
To structure this range, Indosuez will rely on the
“ETF-as-a-Service” platform of Amundi, a Paris-based asset
manager and ETF provider in Europe.
The rise of passive strategies in recent years is accompanied by
renewed interest in active management. In this context, Indosuez
aims to offer a solution that combines its expertise in active
management with the transparency, liquidity, and simplicity
inherent to ETFs.
The initial range will include four active ETFs covering global
equity and fixed income markets, with two distinct approaches:
ETF Enhanced: one ETF covering fixed income markets and two
actively managed equity ETFs based on a proprietary quantitative
model, aiming to provide structured exposure to proven
performance factors within a strict risk control framework.
ETF Unconstrained: one ETF with a flexible global equity
strategy, aiming for long-term capital growth across the
international equity universe.
These ETFs will be aimed at a wide range of retail investors,
including Next Gen, and professional investors such as
pension funds and family offices, the firm said.
A number of firms, including Schroders, Pictet Asset
Management, Invesco, and Franklin Templeton, have been continuing
their expansion into ETFs. See more
here and
here.
However, unlike Indosuez, Payne said he does not invest in ETFs.