'Rich pickings in emerging markets'

Johannesburg - Investment in emerging markets is likely to continue to bear fruit as the debt crisis plays out in Europe.
 
That's according to asset management firm Stanlib. which addressed the media on Tuesday in Sandton.
 
"We are not looking at a double-dip recession scenario," said Stanlib economist Kevin Lings. However, he said the world was likely to experience "uneven" growth over the next few years.

Pointing to the International Monterary Fund's growth forecasts, Lings said the two areas where high levels of growth were expected to continue was South Asia and Africa.
 
"Africa is under-owned at the moment," he said, indicating investors could do well to position their portfolios with exposure to these regions. This, he said, could be through a managed portfolio or by buying companies with exposure to these regions.
 
Henk Viljoen, the head of fixed income at Stanlib, agreed, saying debt issues in Europe were likely to continue to weigh on eurozone growth opportunities.
 
"There is more bad news to come in Spain," he said, referring to rising government debt and unemployment in the region.
 
Asked why a region like Africa would outperform Europe, which remained a major trading partner, Viljoen pointed to low debt levels across the continent. "Africa learnt its lesson whereas the developed world didn't," he said.

Another key issue identified by Viljoen is that companies operating in emerging markets face fewer regulatory hurdles, which should in turn stimulate their growth rates.
 
 - Fin24.com