Kaloo: We may not have reached bottom in EM

The heavy selling seen in emerging markets since last May has halted year to date as buyers snap up sold-off shares, but Aberdeen's global emerging markets head Devan Kaloo has warned there could be more pain to come.

Kaloo, who leads the management of Aberdeen’s £5.6bn Global Emerging Markets Equity fund, said he would use any fall to buy more of his favourite holdings. He said: “Valuations could fall further if other setbacks do materialise. These include continued uncertainty over the US Federal Reserve’s monetary policy, and concerns over China’s slowing growth. Geopolitical tensions may similarly make investors nervous. “However, a lot of the bad news has been priced in, while the outlook for earnings growth seems to be improving. We will be keen to pick up our favoured stocks if valuations do...