Stockholm (HedgeNordic – Teaser) – Emerging Markets (EM) have been subject to large foreign investor flows during the last 20 years, as equity investors have bought into the growth stories of developing economies.
However, the negative market sentiment in 2015 and for much of the last five years has sent a harsh reminder that buying into emerging market equities is coupled with a lot of risk, and that the dependence on global growth factors cannot be disregarded.
Aki Kostiander, head of Real Assets at Finnish asset manager United Bankers (UB), argues that infrastructure investments is a better way to tap into the growth prospects of emerging markets compared to holding a broad equity exposure to these markets.
You can read the full article on pages 24-25 in the HedgeNordic Special Report on Real Estate and Infrastructure Investing
