Valuation levels are extremely strong for the emerging markets asset class and even more so for active, risk-controlled emerging markets portfolios, which have a single-digit price-to-earnings ratio, with attractive earnings growth forecasts. Overall, the emerging markets are the most attractively valued equities available to investors.

The emerging markets asset class is now selling at historically low valuation levels as compared to similar assets in developed markets. Based on P/E, valuations are currently half those of developed markets, compared to an average of 0.75 over the past 15 years. Such compellingly strong fundamental value cannot be ignored.