| Janus Capital Group Inc was so sure that emerging-market stocks are a good bet that they doubled their share in the $2.3 billion Janus Overseas Fund within 2 years. |
| Brent Lynn, a fund manager at Janus Capital said, "It's not just export-led growth, you also have domestic demand and wealth creation driving the growth.'' |
| "Wealth creation generates huge demand for things including housing, and helps to spur the domestic economy in these countries, he said. |
| Emerging-market equity funds worldwide have roped in $7.7 billion this year, almost 3 times the amount they drew in 2004, Massachusetts-based Emerging Portfolio Fund Research said this week. That compares with the record $8.6 bn the funds attracted for 2003. |
| One of the reasons, emerging- markets have attracted strong inflows is the fact that MSCI Capital International Emerging Market index has touched a record high earlier this month and climbed up 7.2 per cent this quarter compared with 3.4 per cent gain in the MSCI World Index during the same period. |
| Consumers in countries such as India and China are spending record amounts as their economies expand by more than 8 per cent a year. |
| Investors are optimistic that profits will keep rising at companies such as China Mobile Ltd., China's biggest mobile-phone company, and Tata Motors, India's second largest carmaker. |
| According to Washington-based IMF forecast early this year, emerging-market economies will expand at 6.3 per cent this year while the developed countries will grow 4.3 per cent. |
| Spending power in markets such as India and South Korea will keep rising even if global growth slows, sustaining stock-market gains, said Janus's Lynn. |
| His fund has returned 9.9 per cent this year, beating the 1.8 per cent gain for the benchmark, MSCI EAFE Index, which tracks developed markets outside the United States. |
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