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From Komfie Manalo, Opalesque Asia:

Institutional investors are racheting down their exposures in developed markets but are increasing their portfolios in emerging markets both across the debt and equity asset classes, said Consilium Investment Management, manager of the EMAR fund.

"We believe this strategic rotation is a longer term phenomenon as investors search for fundamentally superior growth and credit quality. Emerging countries have more policy flexibility given better balance sheets and more room to manoeuvre on the monetary side given that they have higher nominal and real rates following the tightening cycle that many initiated after their inflation rates started to rise 10 to 12 months ago. Many countries in the emerging world have better debt profiles, demographics, and most importantly, natural resources, which bode well for these countries," Consilium said in its monthly market commentary sent to investors.

The firm added that they are looking at significant portfolio shifts from historic levels. Many investors will be grabbing these opportunities faster than others, but insisted that this emerging trend would favour emerging markets.

This was the same finding as that of data provider EPFR Global in its latest report "High Yield Bond Funds see record setting inflows ahead of Eurozone debt summit," which claims that investors have regained their appetite for emerging markets "falling out from f......................

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