Investors: Emerging markets will outperform

21 November 2007

Seventy per cent of investors believe that emerging markets in the banking sector will produce greater investment returns than developed markets, according to research by UK fund management firm New Star.

Investors believe that in the long-term, China, India, Africa and Latin America will outperform developed markets such as Europe, the US and Japan.

However only 51 per cent of investors said they would increase exposure to emerging markets, despite their predictions, despite strong arguments for investing in them.

Rob Page, marketing director of New Star, commented: "This research shows that the potential of emerging markets appears to be well recognised but investors remain cautious and appear to be willing to sacrifice outperformance for more familiar markets.

"This clearly highlights that the majority of investors lack balance in their portfolios and provides compelling evidence of the need for quality independent advice if they are to access the potential of the new economic world order."

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