Capital is returning to emerging market equities after a prolonged period of outflows. Early-cycle inflows have favoured passive strategies, but history suggests this approach risks missing the alpha generated by active managers as opportunities emerge and persist through the cycle.

A credible Fed nominee may soothe ‘Irritable Powell Syndrome’, but it doesn’t alter the structural forces driving global diversification, according to Sahil Mahtani, Investment Institute Director.

Capital is returning to emerging market equities after a prolonged period of outflows. Early-cycle inflows have favoured passive strategies, but history suggests this approach risks missing the alpha generated by active managers as opportunities emerge and persist through the cycle.