There\u2019s one emerging market country that\u00a0Michael Bolliger can\u2019t get bullish about at the moment: South Africa.<\/p>\n
President Jacob Zuma is fighting to stay out of court before the African National Congress votes for a new leader in December. He\u2019s pushing for his ex-wife to succeed him, but most analysts in a Bloomberg survey think\u00a0the nation\u2019s Deputy President Cyril Ramaphosa probably will. It\u2019s more noise for a market that has already paid a price for political wrangling when it lost two of its investment ratings in April.<\/p>\n
\u201cPolitical decisions typically don\u2019t play a major role in our investment decisions, but in South Africa\u2019s case, it\u2019s an exception\u00a0due to the very binary nature of the outcome,\u201d Bolliger, who oversees more than $2 trillion for clients as the head of\u00a0emerging-market asset allocation at UBS Wealth Management, said in an interview in Bloomberg\u2019s office in Dubai.<\/p>\n
The rand, which was one of the world\u2019s best performing currencies for most of the first quarter, isn\u2019t among emerging nations\u2019 top 10 gainers this year.<\/p>\n
Aside from South Africa, Bolliger is bullish on developing equities, even after companies handed investors gains of about 20 percent in the second quarter of 2017 on a yearly basis, compared to about 12 percent for those based in the U.S. The MSCI Emerging Markets Index has advanced almost 30 percent in 2017, boosting the gauge\u2019s price-to-earnings ratio over the next 12 months on Monday to the highest level since January 2010.<\/p>\n
South Africa<\/strong><\/p>\n Russia<\/strong><\/p>\n Turkey<\/strong><\/p>\n Saudi Arabia<\/strong><\/p>\n Egypt<\/strong><\/p>\n\n
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