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Emerging markets 'attractively priced' for growth period

Emerging markets 'attractively priced' for growth period

Emerging market equities are attractively priced for a coming period of global economic growth, according to the guests on the latest FTAdviser podcast.

Fahad Hassan, chief investment officer at Albermarle Street Partners, said valuations should be the starting point when looking at any investment, and over the past decade emerging markets had "derated significantly" compared with developed markets.

"Given the wider growth outlook, emerging markets should have done better last year, but they suffered a bit as a result of the flight to quality trade by investors last year,” he added. He said with economies opening up, and economic growth rising, there was potential for emerging market assets to perform well.

Gustavo Medeiros, head of research at emerging markets specialist fund house Ashmore, said: “2021 was a peculiar year, as commodity prices rose and emerging market economies grew at a faster pace than those in developed markets, but share prices didn’t respond to that because markets were worried about US interest rates, and the impact of the slowdown in China but we have more clarity on those things now.”

Zehrid Osmani, global equity fund manager at Martin Currie, said the valuations of emerging market assets, particularly in Asia, were "very attractive" right now.

"The first thing to look at is the valuations, then you consider geopolitical risk, which impacts the investment case, for example, for Russia right now," he said.

To listen to the full podcast, click on the link above.

david.thorpe@ft.com