Are GEMs still worth the effort: Adviser views

This article is part of
Global Emerging Markets - March 2014

With emerging markets coming under the spotlight in recent months, Investment Adviser asked advisers what their view on the region is.

Joss Harwood, chartered and certified financial planner, Eldon Chartered Financial Planners:

“Here at Eldon we don’t guess what world markets will do in the short term. Evidence points to the fact that those who attempt to ‘time’ markets’ will get it wrong more often than they will get it right.

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“Our asset allocation includes an amount of emerging market exposure appropriate to our client’s appetite for volatility and capacity for loss - and we stick with it.”

Aj Somal, chartered and certified financial planner, Aurora Financial Planning:

“I am still recommending client’s invest in emerging markets as part of their overall investment portfolios, as there is still the potential for growth in these markets in the longer term.

“As they have become cheaper, the clients who are contributing on a regular basis into these markets are benefiting from pound cost averaging. I would stress, however, that I look to clients to invest into these markets when they are looking to invest over longer terms.”

Carl Melvin, chartered and certified financial planner, Affluent Financial planning:

“Investment is a long term pursuit and emerging markets will, over the longer term, deliver strong growth relative to more developed markets. Emerging markets are more volatile but no one made money from a flatline market. However, investors should only allocate a percentage of their portfolio in line with their risk tolerance/investment goals and timeframe.

“The same was said about Europe two years ago [as is said about emerging markets now] and those investors that held fast have been rewarded.”