Uncertain Path Ahead For Emerging Markets

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    The relative performance of emerging markets equities has an uncertain path, says Paul Moroz, deputy chief investment officer and director at Mawer Investment Management. He told the International Foundation of Employee Benefit Plan’s ‘47th Annual Employee Benefits Conference’ that past returns are “regime sensitive” and impacted by the timing of major events such as the Asian flu or the Japanese/technology bubbles. Thus investors must have the willingness and ability to tolerate risk in emerging markets. Management teams can employ business strategies that create value despite the challenges emerging markets may face. He maintains there is a superior case for active asset management when there are greater market efficiencies and where there are unique opportunities and risks that require more attention.