Why I bought Indian and Brazilian banks this summer

ON EMS

Recent turbulence in emerging equity markets was an opportunity to snap up shares in India and Brazilian banks, said M&G's Matthew Vaight.

During the summer, speculation about when the Fed would end QE sparked indiscriminate selling of emerging market bonds, equities and currencies. And yet in September, the Fed surprised investors. The market welcomed the decision to delay the move and shares prices and currencies recouped some of their recent losses. For the first time in several months, emerging market equities outperformed their developed market counterparts in September. Throughout the recent market turmoil we continued to add to our holdings in banks such as Axis Bank from India and Brazil’s Banco Bradesco. In our ...