[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-203390-105":59,"doc-detail-203390-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","risk-management-techniques-in-emerging-markets-february-2013","Risk Management Techniques in Emerging Markets - February 2013","","The presentation analyzes risk management for emerging market assets, motivated by volatility and portfolio drawdowns highlighted by the Great Recession. It surveys major risks such as illiquidity, capital controls, devaluation, government interference, accounting fraud, and corruption, while noting that crises may intensify and liquidity can be discontinuous. It compares tail-risk management via long-volatility strategies, volatility management, and equity beta reduction, and emphasizes using risk models to control combined factor exposures across emerging debt and equity.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/risk-management-techniques-in-emerging-markets-february-2013/203390/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/risk-management-techniques-in-emerging-markets-february-2013/203390.png","ImageObject",300,407,{"name":92,"@type":93},"Aria Callaghan","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-05","2026-09-04",true,{"@type":102,"interactionType":103,"userInteractionCount":39},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What main emerging-market risks are highlighted in the summary?","Question",{"text":112,"@type":113},"The summary lists illiquidity, capital controls, devaluation, government interference, accounting fraud, and corruption, alongside increasing severity of international financial crises.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How can investors manage tail risk in emerging markets?",{"text":117,"@type":113},"Two approaches are described: adding long-volatility strategies (options, variance swaps, managed futures) and reducing equity beta by allocating away from equity, including long/short equity and advanced beta such as managed volatility.",{"name":119,"@type":110,"acceptedAnswer":120},"Why is risk modeling important for emerging debt and equity?",{"text":121,"@type":113},"Investors are advised to use a risk model to define carefully combined factor exposures across both emerging debt and emerging equity, improving resilience against portfolio drawdown risk.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},203390,1788560495,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":39,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":129,"read_time":41},962084926284,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","Risk Management Techniques in Emerging Markets  \nGeorge R. Hoguet  \n\n| 1 | Risk Management Techniques in Emerging Markets\u003Cbr>\u003Cbr>George R. Hoguet, CFA, FRM\u003Cbr>\u003Cbr>\u003Cbr>February 2013 1 |\n| --- | --- |\n\nSummary  \n• The Great Recession has enhanced the case for investing in emerging market assets of all types and secular flows to emerging markets are likely to increase; This development may add additional volatility to investor portfolios and may pose absorptive capacity for recipient countries  \n• Investing in emerging markets present substantial risks including: illiquidity, capital controls, devaluation, government interference, accounting fraud, and corruption  \n− International financial crises appear to be growing in intensity and magnitude  \n• Investors are increasingly concerned about drawdown or tail risk and seek to construct more resilient portfolios  \n• Two approaches to managing tail risk include:  \n− Add strategies that are long volatility  \n􀂙 Options  \n􀂙 Variance swaps  \n􀂙 Managed futures  \n− Reducing equity beta  \n􀂙 Allocate away from equity  \n􀂙 Long/short equity  \n􀂙 Advanced beta, including managed volatility  \n• Advanced beta techniques, including managed volatility strategies, have the potential to reducedrawdown risk by roughly 30% in emerging markets equities  \n• Investors in emerging market equities should use a risk model to define carefully combined factor exposures in 2both emerging debt and equity   \nRisk Management via Convergent and Divergent Exposures  \nCombining convergent and divergent exposurescan lead to a better probability of absolute return  \n3The information contained above is for illustrative purposes only  \n1  \nThe screen versions of these slides have full details of copyright and acknowledgements  \nRisk Management Techniques in Emerging Markets  \nGeorge R. Hoguet  \nBackground  \nA few (out of many) lessons for investors from the Great Panic and Great Recession  \n• The assumption of continuous liquidity is false  \n• Broad based asset class diversification is insufficient to prevent large wealth losses  \n• Leverage amplifies losses  \n• Behavioral bias and herding can lead to substantial deviations from fair value in asset prices  \n• Asset allocation needs to take into account liability structure; Pension plans tend to be short duration and to lack adequate volatility spike hedges  \n• Econometric analysis needs to be supplemented by historical and scenario analysis  \n• Asymmetric information is a pervasive characteristic of financial markets, and mis-aligned incentives can lead to financially and socially sub-optimal outcomes  \n• A disciplined rebalancing approach can offset the inclination to sell at market lows  \n4   \nBackground (2)  \n• The emerging markets in the global economy  \n• Transmission mechanisms of the Global Financial Crisis to emerging markets  \n− Trade  \n− Commodities  \n− Capital Flows  \n• The policy response  \n5   \nCharacteristics of Emerging Equity Markets  \nSome Characteristics of Emerging Equity Markets Include:  \n• Diversity  \n• Volatility  \n• Stock Concentration  \n• Synchronicity  \n• Time-Varying liquidity  \n• Higher transaction costs than developed markets  \n• In some cases, less transparency and analyst coverage than developed markets  \nPotential for:  \n• Return enhancement rates of economic growth/stock market returns   \n• Diversification  \n• Broader investment opportunity set  \n6 Diversification does not ensure a profit or guarantee against loss   \n2  \nThe screen versions of these slides have full details of copyright and acknowledgements  \nRisk Management Techniques in Emerging Markets  \nGeorge R. Hoguet  \n\n| What Is an Emerging Market? What an Index Provider Says It Is!\u003Cbr>The BRICS Account for Roughly 45% of the MSCI EM Index |  |\n| --- | --- |\n| \u003Cbr>\u003Cbr>\u003Cbr>\u003Cbr>Regional Weights Benchmark Weights\u003Cbr>Asia 60.4%\u003Cbr>Europe\u003Cbr>LatinAmerica Mideast/Africa\u003Cbr>10.0\u003Cbr>21.4\u003Cbr>8.2 | Smaller Markets\u003Cbr>Country Weight Country Weight Asia Europe Indonesia 2.6% Czech Republic 0.3","cbCaieYmEp8o89Lb","https://ap.wps.com/l/cbCaieYmEp8o89Lb","pdf",337460,12,"English","# Summary\n## Key emerging-market risks\n## Tail-risk management approaches\n# Background\n## Lessons from the Great Panic and Great Recession\n## Emerging markets in the global economy\n# Characteristics of Emerging Equity Markets\n## Diversification and its limits\n# Defining emerging markets and indices\n## BRICS weights and MSCI EM context\n# Emerging opportunity set and bond diversification\n## EM small cap concentration and local-currency bond indices","[{\"question\":\"What main emerging-market risks are highlighted in the summary?\",\"answer\":\"The summary lists illiquidity, capital controls, devaluation, government interference, accounting fraud, and corruption, alongside increasing severity of international financial crises.\"},{\"question\":\"How can investors manage tail risk in emerging markets?\",\"answer\":\"Two approaches are described: adding long-volatility strategies (options, variance swaps, managed futures) and reducing equity beta by allocating away from equity, including long/short equity and advanced beta such as managed volatility.\"},{\"question\":\"Why is risk modeling important for emerging debt and equity?\",\"answer\":\"Investors are advised to use a risk model to define carefully combined factor exposures across both emerging debt and emerging equity, improving resilience against portfolio drawdown risk.\"}]","Risk Management Techniques in Emerging Markets - February 2013 | PDF"]