Over the past twenty years, emerging market countries have addressed many of the vulnerabilities that have deterred foreign investors.
Pramol Dhawan, Head of Emerging Markets Portfolio Management at PIMCO, explains that many countries have built up their US dollar assets and further developed local bond markets. They have also localised their current accounts and allowed for free movement of money.
He says: “All these factors have created a more investable climate for foreign investors. Whether they choose to or not, it’s a lot easier for people to invest with confidence now than it was 20 years ago.”
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
