Big Wall Street Funds Cling Onto Emerging Markets in Bank Crisis
- State Street, Franklin Templeton positive on emerging markets
- Bout of financial-sector risk seen limited to mature markets
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Amid the banking turmoil that’s sent global capital markets into a tailspin and raised the prospect of a full-blown recession in the US economy, true believers in the bull case for emerging markets are digging in.
For veteran managers from Franklin Templeton to Morgan Stanley Investment Management and State Street Corp., the tumult in major markets has reinforced the case for developing nations. They say the adoption of stronger risk-control measures for corporate and government assets stands to reward bulls with heftier payoffs, while policymakers in the developing world benefit from a head start over peers in the US and Europe in fighting against inflation.