Troy's Yeowart: How we are gaining EM exposure

Following a prolonged period of poor performance, many investors have started to reappraise the prospects for emerging markets (EMs).

Investor sentiment has become more positive during 2016, burnished by the greater stability of local currencies as well as improving commodity and energy prices. The higher yields offered by emerging market debt have also proved attractive to those bereft of income in the developed world. With the Federal Reserve potentially raising interest rates next month, it would be fair to question whether the good performance of emerging market equities will persist. It would be too simplistic to suggest that all EMs repeat the experience of 2013, when a sharp increase in US long-term yields le...