Emerging market sentiment has returned this year and some fund managers believe EM equities are set for a multi-year bull run. But analysts warn that the last five years to the end of 2015, the MSCI EM index has returned -5.2% compared to the FTSE developed markets’ 65% return.
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“The key to emerging markets investing is to be selective. Our team is also high conviction and contrarian – we look for the turn before it happens. We call it a `contrarian high conviction selectivist’ approach, which is a specialised skill set that differentiates us from peers.” Robert Ruderschmidt, portfolio manager, Overflowing Alpha Asset Management |
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“With sentiment rising maybe I can finally get clients out of the EM stinker we bought a few years ago from a certain manager who persuaded us he was a genuine contrarian high conviction selectivist.” Louie Zheng, head of discretionary mandates, Global Behemoth Private Bank |
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“Your request has been declined for compliance reasons. Feel free to reach out to us in the future.” Fanny Leung, corporate communications, Absolute Zero Risk Investment Management (AZRIM)
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“The biggest risk to an EM rebound is if media keeps reporting on those five years of underperformance.” Lars Baas, head of global distribution, Pushback Asset Management |
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“While the environment has been challenging, our emerging market funds performed the best in the sector over the past three years, providing investors with a -35% return compared to the peer fund average of -37%.” Pollyanna Sim, head of marketing in APAC, SmoothTalk Fund Management Group |
