Investors remain underweight in emerging markets

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Despite the belief amongst many investors that some emerging markets will generate greater returns than developed markets, most remain underweight in the sector, according to research undertaken by New Star.

The survey revealed that 70pc of investors see emerging markets such as China and India and the countries of Africa and Latin America as likely to generate superior investment returns than the US, Japan and Europe over the medium to long term. Nevertheless, the research found only 10pc of investors have exposure to China, 7pc to India, 4pc to Latin America and only 2pc to Africa. This compared with 90pc of investors who have exposure to the UK, 40pc with exposure to the rest of Europe, 22pc with exposure to the US and 14pc with exposure to Japan. Of those surveyed, just over half (51pc)...

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