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This is for investment professionals and should not be relied upon by private investors
Since 2011, emerging market (EM) equities have underperformed developed market (DM) equities significantly. However, history shows that performance leadership tends to rotate over multi-year periods. Following a four-year period of weakness, we are cautiously optimistic that the recovery in EM equities seen so far in 2016 could be sustained. Relative EM valuations are now attractive on almost any measure, helped by the recovery in oil prices, EM economies are stabilising and expectations of US monetary policy normalisation have been pared back. In addition, global yields which are already at unprecedented lows keep going even lower, continuing to push investors into higher-risk...
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