Lazard's Ryan: EMs can do well even when Fed starts hiking

Emerging market stocks can flourish in the face of a tightening cycle from the US Federal Reserve, according to Lazard Global Equity Income manager Pat Ryan.

Ryan’s £440m fund is overweight emerging Asia and Asia ex-Japan, and the manager believes concerns over the impact of higher US borrowing costs may prove overplayed. After a tough 2014, developing market stocks have staged a recovery this year. The MSCI Emerging Markets Index has returned 7.8% in sterling terms year to date, in part due to poorer US data pushing back the prospect of a rate hike. Most economists now expect the Fed to raise rates in September. Ryan (pictured) believes the benefits of an improving US economy will offset the impact of stronger US dollar on emerging nation...