Emerging Market Investors: Drop a Bric and Pick Up a Bimchip (Financial Times)

  • My view is that investors should embrace a more targeted approach by picking specific countries or, at the very least, invest in funds run by people who will do that active allocation between countries in an intelligent fashion. Mobius and Templeton spring to mind.I would also suggest two distinct opportunities. First, aim for a select band of countries that actually outperformed their peers in the past year of crisis; second, put EM bonds on your radar.
  • He [Vincent Deluard, a strategist at StoneX, a trading services company] suggests ditching old-fashioned terms such as the Brics and Gems (global emerging markets) and embracing your inner Bimchip. This dreadful acronym embraces the idea that you only invest in the following countries: Brazil, India, Mexico, Chile, Indonesia and Peru.
  • I’d suggest the following combination of actively managed investment trusts and country specific exchange traded funds.
    • Brazil, Peru and Chile: Abrdn Latin American Income and BlackRock Latin America
    • India: India Capital Growth and Ashoka India Equity
    • Mexico: Xtrackers MSCI Mexico UCITS ETF 1C, ticker XMEX
    • Indonesia: HSBC MSCI Indonesia UCITS ETF USD, ticker HIDR READ MORE

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