“Taper terror” following news the U.S. Federal Reserve is set to begin slowing its asset purchases spurred an en masse stampede of funds from many regional markets and currencies – most notably in Indonesia and India.
Emerging markets equity exposure in August fell to its lowest level since November 2001 as fund managers globally fled the segment and piled into developed markets, according to a survey from Bank of America-Merrill Lynch.
But as the dust begins to settle, some managers are calling attractive re-entry points.
“Investors should consider using the valuations in emerging market bonds after the selloff as an attractive entry point,” writes Ramil Toloui, global co-head of the emerging markets portfolio management team at Pimco, which has around $2.04 trillion under management.
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