In a recent FE Trust article, John Ventre, the head of multi-manager at Old Mutual, explained how investors should be wary of becoming over exposed to emerging markets without realizing it by having investments in the following areas:
- Equities. Investors who buy UK equities such as UK luxury goods companies or UK large caps will end up with exposure to emerging markets. In fact, large cap and luxury stocks such as Diageo and Mulberry have also seen their stock movements track the performance of the MSCI Emerging Markets Index.
- Commodities. Emerging markets are commodity hungry and holding stocks in commodity producing companies such as miners or by holding an exchange traded fund that follows a commodities market is a good way to have exposure to developing countries.
- US Treasuries. An overlooked exposure to emerging markets is US government debt because: “China owns an enormous number of US treasuries. If the country had a crisis to deal with they would effectively be forced to sell those assets to bring the money back home to fix the problem.”
To read the whole article, Five ways to invest in emerging markets, go to the website of FE Trustnet.
- A Strategy for Emerging Market Crises (Verdad)
- What Went Wrong for Terry Smith’s Trust? (FT Adviser)
- Terry Smith: Emerging Markets to Outperform Over the Long-term But Brace for Volatility (FE Trustnet)
- How Much Should You Invest in Emerging Markets? (The Telegraph)
- Whitechurch Securities: Buy Actively Managed India Funds Rather Than ETFs (FE Trustnet)
- Shift Your Emerging Market Consumer Exposure from MNCs to Local Stocks (FE Trustnet)
- Fundsmith Unveils an Investment Trust Targeting Emerging Market Consumers (FT)
- How MSCI’s Removal of Qatar & UAE Impacts the Frontier Markets Landscape (MM)
- Emerging Markets 2018 Economic Outlook (Focus Economics)
- OMGI’s Crabb: India Consumer Stocks on “Very Stretched Multiples” (FE Trustnet)
- Emerging Market Small Cap ETF List
- When China Sneezes, Latin America Gets the Flu Thanks to Commodities (IPS)
- Capital Economics: History Says Rally in Emerging Market Stocks is no Dead Cat Bounce (FE Trustnet)
- GAM’s Love: Emerging Markets Might Double Your Money Over Four Years (FE Trustnet)
- PODCAST: The Question Is…Why Should Investors Bother with Emerging Markets? (Lazard AM)