More experienced colleagues are prone to be sceptical about a lot of things. One thing we have been asked on a number of occasions is where the growth is going to come from now China is slowing. That country’s huge demographic boom coincided with the liberalisation of its economy, and both factors combined to create an explosion of demand for commodities, basic consumer goods, and then latterly more sophisticated goods.
China’s demand was supplied by fossil fuels and commodities from other emerging markets, while China’s growing capital was reinvested overseas, often in other emerging or frontier markets. That boom is clearly over, China has matured and is facing the task of escaping the “middle-income trap” in the long run, and a debt crisis in the property sector in the short run. So is the emerging markets growth story over?
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.
