Schroders' head of emerging market equities Allan Conway looks at why global emerging market shares have failed to keep up with those in the developed world but are set for a rebound in the near future.
"Global equity markets, including global emerging markets, have rallied recently on further stimulus announcements from authorities in the developed world. "However, despite a superior economic growth outlook, stronger fundamentals and more attractive valuations than the developed world, GEMs continue to lag their developed peers year-to-date. "The structural case for GEMs remains intact; emerging economies are typically supported by strong underlying fundamentals with high saving ratios, low levels of debt and prudent lending policies. "Valuations are attractive versus history and...
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