Some 83.33% of respondents to the Global Pensions 100 Panel believe fund managers specialising in emerging markets are just as skilful as their developed economy counterparts.
The results contradict data from research firm Inalytics, which found developed markets managers to be more skilful at picking securities than emerging markets managers.
The firm said there are two defining characteristics in manager skill – getting more than half of their investment decisions right, and knowing when to cut their losses.
Inalytics chief executive Rick Di Mascio said part of the problem with more illiquid markets such as emerging economies is even when the manager makes a poor bet, it’s hard to get out of that security.
“We find it very difficult to find skill in emerging markets managers,” said Di Mascio. “We do find it, but it’s not in a higher proportion or any more prevalent than with any other manager.
“We are possibly even more likely to find truly skilful managers in more developed markets... Some of the best managers we’ve seen are in developed markets.”
Of those respondents who disagreed with Inalytics’ findings, one said it was because there was “more growth and hence alpha in emerging markets”.
