Zach Riaz, director and investment manager of Banyantree Investment Group, said that about three years ago his team started reducing their broad EM exposure and adding more to India and China.
“Close to 70 countries can be put into the EM category – within that group there’s a big divergence in underlying themes, fiscal and monetary policies, growth profiles and currency dynamics,” Riaz said.
“We prefer to look at EMs from the bottom up because of that divergence of themes and you need to really dig deep into what is important in these markets.”
Underperformance of traditional emerging markets indexes was part of the reason they had changed that approach.