Aberdeen multi-asset team: Why stars are aligning for EMs

Region 'in better shape' than DM counterparts

Aberdeen's multi-asset team has increased its weighting to both emerging market equities and debt (EMD) across a number of funds, on the view supporting factors "appear to have longevity".

The team, which manages £90bn, said it had moved overweight as emerging markets are "in better shape" than their developed market counterparts. While emerging markets struggled last year, since the start of 2016 the MSCI Emerging Markets index has returned 16.2% compared to a 17% loss during 2015. The region has benefitted from rising commodities prices, delayed US interest rate hikes, and investors seeking exposure outside the UK and Europe in the wake of the Brexit vote. As a result, July saw the biggest ever inflows into emerging market equities, while EMD has seen similarly lar...