GAM's Love: Why we like VARP frontier markets

Tim Love, investment director for emerging market equities at GAM, explains why the team is biased towards the frontier markets of Vietnam, Argentina, Romania and Pakistan.

2017 promises to be a volatile year given the crowded political agenda ahead. However, with EM equities currently under-owned and looking reasonably valued vis-à-vis their developed market equity counterparts, the asset class is likely to prove a popular investment option this year. Following the election of President Trump, a new world order emerged - investors were forced to grapple with the prospects of stronger inflation, which potentially would mark the end of a multi-year (2010-16) backdrop of deflation, secular stagnation and negative real rate distortions. With developed ec...