The outlook for emerging market equities is at its most depressed since the monthly EIE Fund Manager Sentiment Survey was launched in 2005, after the MSCI Emerging Markets Index showed its second-sharpest monthly drop since 2008 in June. The majority of responding companies expect the asset class to continue its bearish path and generate a loss of more than 5% over the next 12 months.
Return expectations for Asia ex-Japan equities also got a hit over the month. While fund management companies had remained constructive about the asset class throughout the year, sentiment dropped a record 43 points this month.
