Five market plays following the summer sell-off
By International Adviser, 1 Sep 15
Hargreaves Lansdown’s Laith Khalaf and Axa Wealth’s Adrian Lowcock on which markets to invest in and how to access them.
“The sector has been out of favour following a period of strong performance, where emerging market equities became overvalued relative to their developed market peers,” said Lowcock.
“As the recovery in the US gathered pace, a stronger dollar and expectations of rising interest rates have made some emerging markets less attractive to invest in. China also naturally weighs on the sector, with many countries dependent on the economic strength there. Emerging markets look set to remain out of favour for a while, but they will recover in the longer term.
Khalaf added: “There is likely to be further falls in emerging markets, but it is actually not a bad time for long-term investors to be thinking about drip-feeding money into those areas.”
Lowcock – Standard Life Global Emerging Markets Equity Unconstrained
Lowcock said: “The fund adopts Standard Life’s unconstrained approach to emerging market investing, taking advantage of the ‘focus on change’ philosophy.”
Khalaf – First State Asia Pacific Leaders
“The First State management team has a fairly conservative approach to management, which stands them in good stead in what is a high-risk investment world,” Khalaf explained.
“While they might not catch as much upside when things are going well, they protect better on the downside.”
Tags: Income | Investment Strategy
