Psigma's McPherson: Why we like EMs and how we own them

Positive on Asian equities in particular

Rory McPherson, head of investment strategy at Psigma Investment Management, outlines the reasons why emerging market equities currently represent good value and reveals his favourite ways of gaining exposure.

Eight and a half years of rising markets combined with the $15trn (and counting!) splurge by global central banks has not left many assets looking cheap. We believe that emerging market equities, whilst not kicking around in the bargain basement, are by no means expensive. To us, along with Asian equities more generally, they rank amongst the best regional opportunities for value on a global basis. Although EM stocks are having an excellent 2017 (up nearly 20% year-to-date), they still lag behind their developed counterparts over recent time periods. Over the last three years, EM's la...