Claire Simmonds, client portfolio manager at JPMorgan Asset Management, said at the International In...
Claire Simmonds, client portfolio manager at JPMorgan Asset Management, said at the International Investment London Forum that the emerging markets boom is far from over, but investors have to look beyond India and China to access the best opportunities.
However, Simmonds argued that although valuations have increased, return on equity has also increased, and this is more important for emerging market investors than GDP growth.
Emerging markets economies now have current account surpluses, and are better run and less volatile, but the real change in many emerging markets is earnings per share growth. Global emerging market profits are now fully participating in economic growth.
JPMorgan currently sees good value in Egypt, which has been the best-performing emerging market over the past five years. Valuations are still attractive, and it has some excellent companies.
South Africa is another favourite, where the group is investing in domestic consumption growth. And Brazil has come through a significant crisis and is a major beneficiary of the growth in China.
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