Emerging Markets - June 2012
With the eurozone not out of the woods by any means and the rest of the world feeling the impact, investors are looking at other countries to find the next growth market.
Forecasts for growth in countries close to the UK’s shores are muted or non-existent, leading many investors to want to move their assets out of the eurozone and into other markets. Emerging markets have long been seen as a growth area, but recent volatility through the global financial crisis has put some off.
Panic and flights to safety led to huge numbers moving out of emerging markets in the past few years, directly hitting performance of funds. But with uncertainty reigning and interest rates remaining low while inflation stays high in the UK, investors may be ready to move back in.
While the BRIC countries are seen as the traditional emerging markets, investment houses are always looking to find new growth areas, leading to the emergence of frontier countries and new hot spots. The challenge for advisers is to filter out areas that have too much uncertainty and volatility, and hunt out the next hidden gem.
IN THIS REPORT
Emerging markets are known for their rapid growth, but this comes with often sky-high volatility. Aimee Steen looks at whether it’s worth the risk
Companies in many emerging markets rank among the largest in the world. Michael Godfrey & Matthew Vaight take a look at what they offer