The tide turns: Wealth managers revisit emerging markets

Some of the UK's biggest wealth managers are turning positive on emerging markets as months of poor performance and outflows begin to reverse.

Emerging markets have been one of the worst-performing asset classes since Ben Bernanke first raised the prospect of tighter US monetary policy last May, with the Fed eventually starting to taper bond purchases in December. The average fund in the IMA Global Emerging Markets sector lost 9.2% in the year to 4 April, according to Morningstar, with many funds suffering double-digit falls. But while falls over the last year are substantial, in recent months EM countries have recouped some of their losses as investors return to unloved stocks. Huge volumes of cash exiting the sector have...