According to a recent poll conducted by ING Investment Management (ING IM), emerging market equities are currently seen as the most attractive out of 23 asset classes for institutional investors over the next six to twelve months.
The poll, conducted among 111 institutional investors in June 204 revealed that 37% of respondents selected this asset class, followed by 33% selecting global equities.
With regard to the recent underperformance of emerging market assets, 16.7% of respondents said that recovery is highly likely while 42.3% said it was reasonably likely the sector would recover and 15.4% said it was unlikely.
Maarten-Jan Bakkum, senior emerging markets strategist at ING IM said: “Overall, we see improving technical factors, while EM fundamentals remain poor. With investor expectations more realistic than earlier in the year, we feel that a small overweight position is justified now.”
In contrast, Commodities, European and US sovereign debt as well as Japanese equities were seen as the least favourite investments.