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Could now be the time to enter the EM fray with Ashmore?

Some analysts see an attractive valuation emerging in the developing market-exposed fund manager
February 3, 2016

Pessimism surrounding emerging markets is becoming entrenched. Half-year results next week from emerging markets-focused asset manager Ashmore (ASHM) should provide another acid test for the sector.

IC TIP: Hold at 215p

The MSCI Emerging Markets index has lost 17 per cent in the past year compared with a virtually flat MSCI World index, in sterling terms. But given the battering taken by emerging markets-focused companies, could we be reaching the bottom?

It would be a brave call. Analysts at Numis have moved Ashmore and the similarly beleaguered Aberdeen (ADN) from hold to buy, adding: "We know this probably won't be the absolute bottom; however, we also know that we won't be able to time that perfectly."