18 Jan, 2008
Published: 09:02 Friday 18 January
Collings said that he remained unconvinced
that developing markets have not yet shaken off their fundamental
connection to the West, pointing to recent trends of volatility.
'If you look from the perspective of the equity markets then you
can see that the two are still closely aligned. We can see that
from patterns of volatility,' said Collings.
He added that the divergence that was apparent in the tracking was
due to the growing economic power of companies and individuals in
the regions themselves.
'They are still being primarily driven by western investor
sentiment. When you see markets in the west fall they go at the
same time. But when they bounce they tend to do so a lot higher.'
While the 'huge wealth transfer' flowing south and east would lead
to closer alignment of the markets at a corporate level, the true
differentiator would be private prosperity.
'There is still a huge amount of money that remains just sitting
there and a huge amount of development still to take place.
Domestic savings and the development of capital markets will be
driving that growth,' said Collings.
The Resolution Hexam Global Emerging Markets fund returned 36.52%
over the course of 2007 versus a MSCI EM Emerging Markets benchmark