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finns spy opportunity in em sell off

Helsinki-based fund selectors plan to take advantage of perceived attractive valuations in emerging market equities, according to the latest Expert Investor Europe Market Insight report


More than half of the Finnish insurance companies and pension schemes our researchers consulted in September planned to increase their exposure to the asset class over the following 12 months.

While investors said they were unlikely to make substantial changes to their EM weightings in absolute terms, many viewed the region as attractively-valued following the sell-off in May – which saw the MSCI Emerging Markets Index fall by about 15%, before staging a partial recovery.

“Global emerging markets have been in the shadows and there might be a turn coming,” said one.

However, not all of our interviewees expected an across-the-board upturn in the region. Another fund selector said he favoured less-developed “frontier” markets, owing to the likely negative impact of US tapering on the larger emerging economies of Brazil, Russia, India and China.

Platinum members can read the full Market Insight report here.

If you are a fund selector and would like to attend the Expert Investor Finland event in Helsinki on 7 November, please contact Patrik Engström by email or on +44 20 7065 7582.