EMERGING: Emerging markets will continue to outperform developed world

Following the sharp market rally of 2009, emerging markets have experienced something of a flat start to 2010 in sterling terms.

The positive news of reasonably buoyant global growth has been more than offset by weaker energy prices and a falling euro, caused principally by the Greek debt crisis. Despite this current uncertainty, emerging markets have outperformed the developed world decisively since bottoming out in February of 2009. There are multiple drivers for this we feel will continue to move the market in the right direction over the medium and long term. We consider the fundamentals in the developing world are very good, underwritten in large by robust economic activity in China. Valuations are not exc...