Global Emerging Markets – Light At The End Of The Tunnel?

In a previous blog post, we cast a spotlight on the challenges facing active equity managers in the U.S. Large Cap universe. Now we’ll look specifically at Global Emerging Markets (GEM) equity as new, positive trends are coming forth. According to eVestment data, GEM active managers have experienced $38B in outflows over the period from Q3 2015 to Q3 2016.  In Q3 2016, the universe experienced inflows of $6.3B.

There has definitely been a significant shift in sentiment since Brexit (June 23, 2016) as the interest in the GEM universe as measured by screening activity on the eVestment database has doubled in the last quarter. The “sentiment towards emerging...