Asante and Kaloo clash over GEM banks

First State Investments' Jonathan Asante and Aberdeen's head of global emerging markets Devan Kaloo have clashed over the growth prospects for GEM banks.

Asante, manager of First State's £1.9bn Global Emerging Markets Leaders fund, is 10% underweight financials as he is pessimistic on the outlook for banks to deliver returns for investors. He said the vast majority of EM banking stocks are state owned and too highly leveraged, in turn making the sector a "risky investment". "I am 10% underweight financials and this is due to my negative stance on the banking sector - which I believe only serves politicians and not investors," said Asante. "There are too many banks across global emerging markets which are government controlled and hi...