First State Global

Some of the UK's biggest wealth managers are turning positive on emerging markets as months of poor performance and outflows begin to reverse.

Whitechurch Securities is considering imposing a cap on the size of funds it buys for clients, a move which may see it automatically sell a fund once it hits a set limit.

QUICKFIRE Q&A

Fund buyers have flagged the possibility of the country's largest emerging market equity funds reopening after outflows and market falls prompted a sharp drop in assets.

Investment trust buyers are selling their infrastructure holdings, rotating into open-ended vehicles or exiting the sector entirely as premiums hit record levels.

Buyers fear increased stock-specific risk as active EM funds run high weightings to developed markets.

After years spent at the margins of conventional investing, infrastructure is returning to favour.

Chinese stocks took a severe hit as the threat of a credit crunch in China escalated and the country's central bank threatened to continue its credit-tightening policy.

GOSLING'S GROUSE

Emerging market debt managers have been taking underweight positions in local currency bonds as they expect the dollar to strengthen once the Fed turns off the QE tap.