Emerging market shares have been hampered by negative investor sentiment in 2018 and are currently trading at a significant discount to developed markets; the widest it has been for a decade.
Yet historically emerging market equities purchased at today’s valuation levels have gone on to return on average of between 40%-50% over the subsequent five years. This is reflected in the asset class’s current price/book ratio which is currently at 1.5x-1.6x, a level that in the past has been supportive of investors generating strong returns in subsequent years.
City of London Investment Group (LON:CLIG) is an asset management group which specialises in investing in closed-end investment companies. The firm is authorised and regulated by the Financial Conduct Authority and registered as an Investment Adviser with the Securities and Exchange Commission.
