Emerging market equities now at double the October 2008 lows

Emerging market equities rose strongly over the third quarter of 2009 and have now more than doubled from the low point seen in October 2008. Indeed, the last six months have seen the asset class deliver the best returns on record.

In terms of valuations, we feel these are still attractive considering the markets as a whole and looking from a long-term perspective. For the moment, investors risk appetite remains very positive.  Importantly though, we believe the longer-term secular story for emerging markets remains undiminished.  No one can dispute that several of the developing nations have emerged from the financial crisis and consequent economic downturn stronger and in a far healthier condition than a number of the developed markets. We remain positive on emerging markets and believe the long-term structural s...