Cookies on the Investment International website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to Investment International?

Welcome, and thank you for visiting our website.

Investment International is the leading publication for investors interested in the world of international investment.

Our aim is to give you intelligent commentary on the most important financial stories, and help you to profit from them. If you've enjoyed what you've read so far why not sign up for our FREE investment alert.

Every week the Investment International team sends out a hard-hitting newsletter packed with news and analysis of the top stories this week plus the best investment opportunities on the market. We always look at the bigger picture like the Eurozone Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

The next tier of emerging markets revealed PDF Print E-mail
News - Alternative Investments
Wednesday, 02 February 2011 10:21

Brazil, Russia, China and India have all been well lauded as the emerging market for investors but there are others around that investors willing to look at the future might want to consider. According to Andy Parsons, advice team manager at The Share Centre, the next level includes markets in Africa and the Far East.

‘Over the past decade, BRIC countries have been the main focus for investors seeking exposure to emerging markets. There is however, the potential for these to now be considered established developed emerging markets. As they become part of our everyday lives, investors are looking towards a new frontier of countries offering the investment potential and excitement previously afforded the BRICs,’ he said.

‘As the world becomes more developed, new markets open up and investment opportunities become greater. The BRIC story is by no means over and still offers significant potential, but investors may be looking for new opportunities,’ he explained.

‘Whilst countries such as Taiwan, South Korea, South Africa, Mexico and Turkey may have already crossed the investment radar, there are others that may have never previously been considered.  Countries such as Indonesia, Chile, Thailand and Malaysia, make it apparent that the world is becoming a diverse and investable asset,’ he added.

Despite regularly being in the news for tensions with neighbour North Korea, he believes that South Korea and Taiwan, both offer investment opportunities. ‘South Korea is home to giant companies such as Samsung Electronics and the Hyundai group, and Taiwan has already undergone considerable industrialisation, which puts both countries ahead in terms of investment opportunity and choice,’ said Parsons.

‘Elsewhere, due to its cultural diversity and because it is seen as the gateway where East meets West, Turkey is unique. Its importance as the key hub for oil and gas transportation from the Middle East cannot be under estimated, including the part it plays in bringing western consumer goods to eastern markets,’ he explained.

He also pointed out that in order for countries to help establish their economic growth, it is vital they are able to attract foreign direct investment and have political stability. ‘For example, whilst Venezuela’s vast oil reserves may make it seem like an opportunity, its risk is far too great given its current political situation. Investors considering exposure to these new emerging markets must appreciate that these markets will naturally exhibit high degrees of volatility and uncertainty in the short term.  However, the potential is there for a long term reward,’ he added.

He advised investors seeking exposure to these countries to seek a global diversified emerging markets fund or a regional specific alternative. He describers the Aberdeen Emerging Markets as ‘ideal for more adventurous investors who want broad emerging market exposure, with access to more than just the BRIC economies, in a well diversified portfolio’.

‘This fund has no single manager at the helm but is managed on a team basis by Aberdeen's emerging market specialists. Its managers and analysts are involved with the participants of these markets on a daily basis, and apply a bottom up approach with an emphasis on absolute returns rather than the benchmark,’ he said.

‘As already alluded to, Asia currently provides investors with an abundance of opportunities and the Fidelity South East Asia fund looks to offer all of those wrapped up in a region specific style fund. The lure of the potential higher returns from the Pacific basin as a region are hard to ignore but it is not for the fainthearted. Poor communication and regulation, lack of corporate governance and even corruption are just some of the difficulties faced by the region,’ he added.

‘The Fidelity South East Asia fund is an ideal way of investing within this region as its managers and analysts are involved with the participants of these markets on a daily basis and it  provides broad diversification across many of the new and exciting next tier of emerging market countries.’

 

 

Most Read

Latest Guides

New Build UK Student Investment
New Build UK Student Investment
Download

UK Airport Car Park Investment
UK Airport Car Park Investment
Download

UK Airport Car Park Investment
Hever Hotel
Download

Holiday Home Rental Guide
Holiday Home Rental
Download

Investing in Buy-to-let
Investing in buy-to-let
Download

Investing in buy-to-let
Investing in buy-to-let
Download

Discover the real power behind your pension
Hever Hotel
Download

Self Invested Personal Pension Guide for UK Expatriates
key
Download

Offshore Banking Guide
Offshore banking Guide 2010-2011
Download
Pension Planning Guide
International Pension Planning Guide 2010-2011
Download
Eurozone Crisis
Eurozone Crisis Report 2010-2011
Download
Tax Guide
International Tax Guide 2010-2011
Download
Follow us on Twitter
Find us on Facebook