Thompson plays down fears over EM funding shortfall

AXA IM manager Julian Thompson has questioned the findings of a McKinsey study which suggests a ‘funding gap' may reshape global markets over the next decade.

The consultancy’s Emerging Equity Gap study forecast a $12trn gap over the next decade between the amount of equity capital demanded by companies and the amount investors want to hold in stocks – with the majority of the shortfall occurring in developing markets. However, Thompson, manager of the £184m AXA Framlington Emerging Markets fund, said the report underestimates the amount of capital likely to be available as developing market bourses and pension industries evolve. “They are being pessimistic in suggesting the level of capital that will need to be supplied by the West. There ...