Emerging Markets Remain Attractive For Global Investors, Says UOB Asset Management

KUALA LUMPUR, Oct 6 (Bernama) -- Emerging markets remain attractive to global investors on the back of an imminent US interest rate hike by year-end and the impending Brexit, says UOB Asset Management (Malaysia) Bhd, Thursday. Its Senior Director and Chief Investment Officer Francis Eng said assets in the emerging markets offer a superior growth profile compared to those in some of the developed countries as investors are looking for better returns. Continued economic growth in emerging markets would also help boost the region's attractiveness to global investors, he added. The bank forecasts emerging markets' real Gross Domestic Product (GDP) growth to rise to 3.9 per cent in 2016 and to 4.3 per cent in 2017, up from 3.6 per cent last year. "Investors are searching for returns in a period of low interest rates. "Emerging markets are one of the bright spots where you can get relatively good growth," he told reporters after the launch of the United Global Quality Equity Fund here. Eng said emerging markets would also benefit from the impending Brexit should investments shift out of Europe. "We have seen fund managers re-look at the asset allocations due to Brexit. If the money shifts out of Europe, it has to look for another destination and emerging markets would actually benefit from that flow of money," he added. -- BERNAMA