London
A GLANCE under the hood of this year's emerging-market (EM) rally signals many investors aren't yet convinced that an economic rebound in developing countries has taken hold.
While a net US$50 billion rushed into developing-country stock and bond funds in 2016, only 20 per cent went into shares, and all of that to lower-cost passive exchange-traded fund (ETF) tracking indexes. Active money managers of equity portfolios suffered outflows of almost US$11 billion this year through Sept 23, according to data company EPFR Global. These stock-pickers charge more and typically attract clients only once they're convinced an investment case has legs.
By favouring bonds and passive strategies, the...
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