EM equities to outperform global peers in the next decade: Morgan Stanley

Analysts at Jefferies, however, have a contrasting view and suggest EM debt to be a better bet than equities as things stand

Morgan Stanley expects emerging market (EM) equities to outperform their global peers in the next 10 years, with a return of 9.6 per cent per annum (20 basis points higher than their long-term average). 

By comparison, Morgan Stanley expects the S&P 500 to return 4.9 per cent per annum, MSCI Europe to see a 6.3 per cent nominal return per annum and Japanese equities' return at 6.1 per cent per annum during this period. 

That said, it expects annual return from a traditional fund in the US — split 60 per cent equities and 40 per cent fixed income —