Investors and money managers are re-evaluating their emerging markets positions and sentiments but are still searching for opportunities, despite disappointing returns this year.
A number of emerging market countries have been through serious adjustments this year, including Argentina and Turkey, said managers. Election results, changes in market sentiment and large debt issuance by some countries have led to re-evaluation of positions on certain countries.
“Early year investor exuberance led consensus emerging markets earnings expectations to be pushed to around 18% for calendar year 2018,” said Edward Evans, emerging market equities portfolio manager at Ashmore Group PLC in London. “However, expectations have since moderated and been revised down to around 12% for this year and 2019. Both seem achievable,” he said.
City of London Investment Group (LON:CLIG) is an asset management group which specialises in investing in closed-end investment companies. The firm is authorised and regulated by the Financial Conduct Authority and registered as an Investment Adviser with the Securities and Exchange Commission.