PIMCO Is Buying Emerging-Markets Equities In Wake Of Market Downturns

Tuesday, October 11, 2011 08:27
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PIMCO Is Buying Emerging-Markets Equities In Wake Of Market Downturns

Tags: China | emerging markets

Emerging-market equities are currently undervalued, especially those in China, according to PIMCO.

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The MSCI Emerging Markets Index has plunged 31% this year, sending its price-to-earnings ratio to 9.4, and the Hang Seng China Enterprises Index has dropped 38% from a 30-month peak in November.


These markets are currently very cheap and offer good buys, according to Maria Gordon, an emerging-market equity-fund manager for PIMCO.


Gordon was interviewed by Bloomberg, which reported that emerging-market equity funds have posted 10 straight weeks of outflows.


“We are definitely fishing in the more cyclically distressed areas of the market where valuations are very, very cheap,” Gordon said in the interview, according to Advisor One.

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