Edward Bonham Carter, vice chairman of Jupiter Asset Management, has revealed where he is investing the money that will eventually go to his children.
Speaking at the AJ Bell investment conference in London today (9 November), the city veteran said ageing populations and technological change are the two themes that will define the investment universe in the coming decades.
In his view the impact will be inflation moving back to the extreme levels of previous decades.
He said ageing populations in developed markets will mean lower GDP growth.
But demographics in the emerging world are, he said, much better, so those regions will be the growth markets of the future, and with that in mind he has invested for his young children into emerging market funds.
He said Indian equities are of particular interest to him, but that the really strong growth in the emerging world will come from Africa, as that is where the greatest level of population growth will come from.
Mr Bonham Carter said: "There will undoubtedly be crises and volatility in emerging market assets but believes that long-term investments, such as those one might make for their children, can tolerate such volatility and that makes emerging markets attractive."
Mr Bonham Carter has worked in the City since 1982 and said he thinks there are "an over supply of investment bankers, and probably an over-supply of fund managers".
He said he expects the growth of exchange traded funds (ETFs) to continue, eventually reducing the number of active fund managers working in the City, regardless of what happens around the UK leaving the EU.
Simon Edelsten, who runs the £152m Mid Wynd investment trust, is wary of investing in emerging markets right now, due to valuations.
He has instead been buying Japanese equities and some shares listed in the US, as he feels there are companies in those markets that can benefit from emerging market growth but right now are at more attractive valuations than buying direct emerging market equities.
Jonathan Davis, who runs Jonathan Davis Wealth Management in Hertford, has moved more into emerging markets over the past year as he believes those assets will perform well in a world of higher inflation.
David,Thorpe@ft.com
