A third quarter survey from investment professionals body CFA UK shows institutional investors are seeing increasing value in emerging market shares following a widespread sell-off earlier in 2018.

Emerging market equities are seen by 53% of respondents as being undervalued, up from 42% in the second quarter. By way of contrast, developed market stocks were seen by 65% of respondents as being overvalued.

About half of the respondents saw gold as being fairly valued, with 76% seeing corporate bonds as overvalued and two thirds seeing government bonds as overvalued.

CFA chief executive Will Goodhart says: ‘Not all has been positive for emerging market equities recently; we’ve seen raising rates, a strong dollar and US trade tensions – all of which do not bode well for them – and we may see investors’ perceptions shift to a more neutral position in the coming months. Our respondents continue to see these as uncertain times.’ (TS)

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