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One
clear way to gauge the future prospects of emerging markets is to get
the views of those with investment exposure to these countries. EMIS
recently commissioned a survey of nearly 300 senior investment
professionals at asset managers, pension funds and banks around the
world to understand how they are thinking about positioning their
investments in emerging economies. The results provide a fascinating
insight into the issues that are currently influencing investment
decisions and where the opportunities and risks are seen to lie in
developing countries.
Not
surprisingly, China failing to hit its growth target is seen as the
main risk that could result in a sell-off in emerging market assets.
Other clear risks are rising interest rates and falling oil prices. By
a wide margin, India is viewed as the BRIC country that holds most
attraction for investors in the near-term.
Outside
of the BRICs, Africa is increasingly seen as the region that offers
great opportunity with its combination of strong growth and improved
stability and governance. Mexico holds a high level of interest in
Latin America (excluding Brazil) and Vietnam and Indonesia are seen as
good bets in Asia (outside of China and India). The newly emerged
markets of Iran and Cuba are also now firmly on the radar of
institutional investors as they return gradually to the global economic
fold.
The
full report, Emerging Markets Investing: Stick or Twist, is now
available for you to download
free of charge. I hope you find
it of interest.
Best
wishes,
Guy Dunn
Chief Executive
Officer
P.S.
You may also be interested in an article
I published recently on LinkedIn about where the emerging market
hotspots are in 2016 and beyond.
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