Mr Kerley predicted the pick up in performance throughout the year was mainly because of an easing up of the distortion of created as a result of quantitative easing.
He said: “QE has favoured developed markets over emerging markets, which will ease with the tapering of QE” but added that there was “still a bit further to go”.
Discussing geopolitical changes in India, he said: “India is in some ways is in a much better position than China, but it has been held back by lack of infrastructure spending and bureaucracy”.
However, he said the fact that markets have priced in such an improvement, has resulted in slim chances of yielding equity returns.
Mr Kerley, while noting improvements in China’s macro economic numbers, also placed a greater emphasis on picking stocks from a bottom-up, company and corporate level.
Among his top picks he cited Petro China, which “spent huge amounts of money gathering oil and gas but not making lots of money” and is now focusing more on profitability and less subsidy, which Mr Kerley said would ultimately lead to higher dividends.
