Multi-asset manager is considering snapping up some emerging market stocks as he does not expect the market “disenchantment” with the region to remain.
The manager of the £243.7m Henderson Diversified Growth fund only has about 5.7 per cent in emerging market equities, with 37 per cent in developed market equities, according to the latest factsheet.
However, the manger thinks the “disenchantment with all things ‘emerging’ looks to be approaching fever pitch”. The manager has not started buying emerging market stocks just yet, but thinks when “the liquidity-driven bull market gives way to a downturn, the best buys may well be found in EM,” he said in a recent statement.
Developed markets have outperformed emerging markets strongly in the past years. The S&P 500 has almost doubled since August 2011.
Elsewhere, the manager thinks lower oil prices are “here to stay”. The price of Brent Crude has fallen below $60 a barrel. On Friday the price fell to $54.62, its lowest since March 19.
Mr McQuaker thinks an opportunity might present itself as “investors who made a strategic allocation to commodities at their height may capitulate”.