After hemorrhaging cash over the last few years, flows into emerging markets (EM) appear to be turning a corner.
Despite turmoil in places such as Argentina, Brazil and swaths of the Middle East and Africa, foreign investment in a number of developing economies is quickening this year — which is also helping to feed government spending.
With investors recently funneling more than $9 billion into emerging market funds — a three-year high — and the benchmark MSCI emerging market fund up nearly 15 percent year to date, experts say it's a good time to be in the sector. It also happens that there's life after BRICS — Brazil, Russia, India, China and South Africa, most of which have stumbled recently — and analysts say it's in private banking.
In a recent note to clients, Deutsche Bank's chief global strategist Binky Chadha said that "over the medium term, we see substantial scope for further emerging market inflows, aided by a continued rotation out of European equities."
In particular, helping emerging market economies create and preserve wealth presents rich opportunities that a number of major banks are rushing to take advantage of.
The current state of wealth management remains solid, Jose Rasco, chief investment strategist with HSBC Private Bank Americas, told CNBC in a recent interview. "In this business cycle, economic growth has been muted but wealth creation continues to advance," he said, citing India, China and Mexico as three areas where HSBC sees particular promise.