Emerging Markets

Emerging markets are currently in a cyclical bear market, with more pain possible, but the sell-off offers investors a good opportunity to add to positions for the long term, according to a leading strategist.

Markets across the continent were lower in morning trading as investors reacted to heavy selling in emerging markets.

Fund buyers have been struggling to find alternatives to Aberdeen and First State's giant emerging market funds, but Rathbones' Mona Shah has uncovered four niche vehicles worth a closer look.

Stephane Fertat, portfolio specialist for fixed income at T Rowe Price, has cut exposure to a number of emerging market currencies in recent months.

A new report has identified 16 countries poised to succeed China as the global driver of manufacturing growth.

Emerging markets have had a torrid summer, as the threat of a slowdown in China and the possibility of QE tapering in the US weighed heavy on investor sentiment.

Fidelity's Trevor Greetham, who heads up the firm's tactical asset allocation team, has cautioned returns on emerging market equities will continue to disappoint as US monetary policy normalises.

Growing fears over the risk of a credit crunch in China are misplaced, according to EFG Asset Management's Mansfield Mok, with the government standing behind the banking sector and ready to boost liquidity if needed.

A number of ‘buy' signals are now flashing for some emerging market assets despite longer-term headwinds, according to strategists at Bank of America Merrill Lynch.

Neuberger Berman has become the latest player to bolster its emerging market debt capabilities, launching a trio of funds for its new recruits.