25% of our delegates recognised Latin America as the region presently offering the most value, with a further 21% picking out emerging Europe. However, from a top-down view, Rock is less optimistic.
“We believe that Latin America and Eastern Europe stand to suffer in the foreseeable future, not least because of contagion from Brazil’s ongoing political scandals and inflation difficulties and the Russian equity market’s vulnerability to the oil price respectively,” he explains.
“With a discerning allocation emerging markets could yet provide a lucrative addition to a multi-asset portfolio. We would, however, particularly recommend patience and diversification when investing in the GEMs.”
The prospects for global emerging market equity funds, and key picks within the sector, are discussed in more detail in the December edition of Portfolio Adviser, out next week.
