Hermes' Greenberg: LatAm and EMEA could take over from Asia by 2017

Profitability will return

Gary Greenberg, head of emerging markets at Hermes IM, said performance leadership in emerging markets could shift from Asia to Latin America and EMEA by 2017 as the commodity cycle bottoms out.

The manager (pictured) of the £446m Global Emerging Markets fund said although Asia has been the stronger performer in emerging markets over the past few years, this will change and profitability will return to commodity-producing nations. Asian equities have massively outperformed their Latin American counterparts over the past three years to 26 January, with MSCI AC Asia returning 10% against the MSCI Emerging Markets Latin America index loss of 51% (in sterling terms), according to FE Trustnet. Greenberg said: "It will not happen this year, but commodities are cyclical and we are c...