Carmignac's Hovasse: The fate of emerging markets is 'in the hands of Xi Jinping'

Russian invasion 'big blow' to EM

Xavier Hovasse, head of emerging markets equities at Carmignac, has warned that “the fate of my asset class is now in the hands of Xi Jinping”.

Speaking to Investment Week, Hovasse stressed that following the Russian invasion of Ukraine, China and neighbouring countries were the best hope for the asset class. The Russian invasion has been a "big blow to the asset class", as it has left Russia's large population and "well-managed" economy "uninvestible". Hovasse joked that not only was Russia "better managed than the other emerging markets, it was better managed than developed markets", citing its huge fiscal surplus and FX reserves, describing it as "the Switzerland of emerging markets". "Sadly, with hindsight, we now know...