Emerging Markets exposure

john0

Can people give me their views on best ways to get exposed to emerging markets, I was thinking that the JP Morgan Emerging Market accumulation possibly, but with a ter 1.63% wasn’t sure, I would be very much a passive investor as do not have the knowledge of emerging markets.

Also slightly worried that i am a bit late getting in to them but I am very much investing for the long term.

Thanks for any replies

TCA

I'm looking at Vanguard Emerging Markets ETF. That's not a recommendation though.

Totton

I've gone for a Investment Trust whilst my better half has an OEIC on a monthly drip feed for EMkts.

The IT is Templeton Emerging Markets IT (TEM), run by Mark Mobius who is considered an EM expert the fund is currently moving into frontier markets as they represent the EM's of a decade ago.

The OEIC is First State Global Emerging Market Leaders, First State are considered very reliable & cautious so probably won't shoot the lights out.

We have been very happy with both choices, they may be worth looking at as generalist emerging market funds rather than say an EM fund specialising in Eastern Europe or Frontier Markets.

HTH,
Mickey

ColdIron

I've not been impressed with JPM Emerging Markets and have been happier with First State Global Emerging Market Leaders, just my 2 cents

cashbackproblems

I invest in Aberdeen Emerging Markets Acc and recently started drip feeding the one above - First State Emerging Market leaders.

Blackrock also do a EM tracker with a low TER if thats what your after.

gkerr4

i have some exposure to the HSBC emerging markets fund traded as an ETF - i'm doing ok with it. the ticker is HMEF

gallygirl

cashbackproblems wrote: »

I invest in Aberdeen Emerging Markets Acc and recently started drip feeding the one above - First State Emerging Market leaders.

I drip feed both of these and am fairly happy with them. Review regularly but keeping with them for now.

cashbackproblems

Also paying into Newton Asian Income fund.

Voyager2002

Totton wrote: »

I've gone for a Investment Trust whilst my better half has an OEIC on a monthly drip feed for EMkts.

The IT is Templeton Emerging Markets IT (TEM), run by Mark Mobius who is considered an EM expert the fund is currently moving into frontier markets as they represent the EM's of a decade ago.

The OEIC is First State Global Emerging Market Leaders, First State are considered very reliable & cautious so probably won't shoot the lights out.

We have been very happy with both choices, they may be worth looking at as generalist emerging market funds rather than say an EM fund specialising in Eastern Europe or Frontier Markets.

HTH,
Mickey

ETFs and trackers are fine for mature, well-regulated markets, but outside these the quality of management takes on critical importance.

I seriously considered a Templeton mutual fund, also managed by Mark Mobius. I decided against, partly because the charges on the product I considered were unreasonably high, partly because I was unhappy with the concept. Mobius is of course very experienced but his age means that he is unlikely to continue for very much longer. Moreover, Frontier Markets are highly "imperfect" (even more so than Emerging Markets) and so there is a need for active management by someone with an intimate knowledge of the market in question, including a 'nose' for local politics and personalities. So rather than a fund investing in a number of such markets, I would look for funds covering the particular countries that most interested me, with a manager present in the country in question.

armour

Voyager2002 said:
Moreover, Frontier Markets are highly "imperfect" (even more so than Emerging Markets) and so there is a need for active management by someone with an intimate knowledge of the market in question, including a 'nose' for local politics and personalities. So rather than a fund investing in a number of such markets, I would look for funds covering the particular countries that most interested me, with a manager present in the country in question.

Thank you Voyager 2002.
As a complete novice to fund investing, this sounds like very good advice.
I have £16K of "contracted out" pension contributions which I'd like to invest in India (don't worry, It's a very minor proportion of my retirement planning).
Would you care to give some pointers as to how to select a suitable fund/manager?

puzzledinvestor

While the idea to chose which individual countries to invest in can be good in some cases, I'm not sure it can be used as a general advice. Obviously India, as well as many other EM countries have great long term prospects, but that does not necessarily translate into them being the best investment opportunity.

Unless you have very detailed knowledge, I would feel more comfortable choosing a more generalist EM fund (or at least e.g. Asia Pacific one), where the manager is able to perform a country allocation himself. Of course there's no guarantee that he'll get it right, but if you're trusting him your money, you assume he's more likely to do it than yourself.

But if you're interested in investing directly in India, I think there are at least a couple of investment trust, and probably a few OEIC (I think both Aberdeen and First State have, and they are supposed to be quite well considered in general, but I don't have any information regarding their indian funds). You can search and compare data from different funds in morningstar or trustnet, and have a look at their factsheets, holdings, etc...