60 seconds with Allan Conway on emerging market volatility

Allan Conway

Allan Conway

Head of Emerging Market Equities

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Opportunities emerge in wake of volatility

There has been a huge amount of volatility in markets triggered by concerns over China and Emerging Markets, but looking at the longer-term fundamental arguments there are reasons to be optimistic.

  • Emerging Markets are counting for 60-70% of global growth for the foreseeable future.
  • Countries like India and China are still growing in excess of 6%, with 2.5billion people who are getting richer and consuming more. That’s having a dramatic impact on global trade patterns.
  • The economic fundamentals in these countries generally is very positive; they are growing well, debt levels are broadly lower, and reserves are high.

Because of the sell off in these markets, and their underperformance, we believe that valuations are increasingly supportive, while investors remain relatively under-exposed to the region.