The 'compelling opportunities' being discounted in EMs

Investors waiting on sidelines

After a challenging period, emerging market equities recovered in 2016 with the MSCI Emerging Markets index posting a 32.6% annual return in GBP, in line with the 32.7% for the S&P 500.

This coincided with economic growth bottoming out in emerging markets. So far in 2017, the MSCI Emerging Markets index has continued to perform strongly, returning 12.2% in GBP to the end of May compared with 3.7% for the S&P 500.  Notwithstanding the above, there are still many investors on the side-lines waiting for a better entry point.   True Potential and UBS launch multi-asset range in joint venture In our view, some significant factors will continue to support this upward trend. For example, favourable demographics and rising incomes should lead to increased personal cons...