Turkey’s financial meltdown left few emerging-market money managers unscathed in August, and investors won’t be buying any time soon, Vanguard Asset Management Ltd., BlackRock Inc. and PineBridge Investments warn.
The Turkish rout spread rapidly to other developing nations, bringing losses of more than 5 percent in three weeks for funds owned by BlackRock, Pacific Investment Management Co. and others. Local-currency bond funds fell an average of 2.1 percent in August, the worst performance globally. U.S. junk debt, meanwhile, handed investors a 0.8 percent return.
