Investors are reducing their exposure to emerging markets (EMs) despite positive growth signals, leaving plenty of opportunity for those that can buy in to companies at discounted prices, said Andrew Ness, emerging market portfolio manager at Franklin Templeton.
Emerging markets have traditionally been seen as more risky to invest in. Has that outlook changed, or have asset managers become more willing to take risk with their investments with regards to emerging markets?
The historic volatility of EMs is higher than that observed in developed markets (DM): 21 versus 15, based on Franklin Templeton’s capital market expectations. The higher volatility in EMs reflects lower, albeit improving corporate governance, higher inflation and larger drawdowns compared to DMs.
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.
