Published: July 12, 2010
Earning estimates growth will attract investors.
Emerging markets are nearing the optimum point in the global economic cycle for investment, according to Baring Asset Management’s head of emerging market equities.
James Syme, who also manages the Baring Global Emerging Markets Fund, believes that the global recovery and low interest rates in developed markets are driving emerging markets earnings estimates.
In a research note issued today, he adds that global equity markets have fallen from their mid-April highs due to concerns about sovereign debt levels, but this is not an issue in the emerging markets. “Looking ahead, we continue to expect a reallocation of investments away from developed equity markets towards emerging markets and the ongoing sovereign risk in the eurozone may intensify this trend.”
The Baring Global Emerging Markets Fund is currently active in Russia and Turkey, as well as Indonesia and China, which are all benefiting from increased consumer spending.