investing in emerging markets?

george4064

In my all equity portfolio I have 8% allocated to Asia Pacific ex Japan and 12% Global Emerging Markets. Asia Pac trust is about 7% China and World EM trust is about 39% invested in China, overall that gives about 5% overall invested in Chinese equities, something that I’m comfortable with.

csgohan4

I have  fair amount in pacific ex Japan and a china Fund. I did toy with going overweight by investing in BABA but glad I didn't in the end. 

Thrugelmir

csgohan4 said:

I have  fair amount in pacific ex Japan and a china Fund. I did toy with going overweight by investing in BABA but glad I didn't in the end. 

Chinese companies are going to regulated very differently to US ones. A good reason always to remain cautious. 

csgohan4

Thrugelmir said:

csgohan4 said:

I have  fair amount in pacific ex Japan and a china Fund. I did toy with going overweight by investing in BABA but glad I didn't in the end. 

Chinese companies are going to regulated very differently to US ones. A good reason always to remain cautious. 

Although Don't forget Taiwan, TSMC is valuable and that is one company i am considering entering into, together with Nvidia with the recent market correction

chiang_mai

FWIW my geographic allocations are:
US - 32%
UK - 11%
Dev Asia - 8%
EM - 7%
Japan - 5%
EU - 4%
Scandanavia - 2%
Aus - 1%
Money Markets - 15%
Cash 14%

eastmidsaver

just had a look at mine,  it still is down a bit.  definitely is a volatile sector.

Alistair31

csgohan4 said:

Thrugelmir said:

csgohan4 said:

I have  fair amount in pacific ex Japan and a china Fund. I did toy with going overweight by investing in BABA but glad I didn't in the end. 

Chinese companies are going to regulated very differently to US ones. A good reason always to remain cautious. 

Although Don't forget Taiwan, TSMC is valuable and that is one company i am considering entering into, together with Nvidia with the recent market correction

Could get wild if/when China take Taiwan. 

dunstonh

eastmidsaver said:

just had a look at mine,  it still is down a bit.  definitely is a volatile sector.

80% loss potential in some areas.  Pretty much the most volatile.  That is why most people don't go above single digit allocations to EM.

Thrugelmir

eastmidsaver said:

just had a look at mine,  it still is down a bit.  definitely is a volatile sector.

Which fund do you hold? 

Linton

I do not believe "Emerging Markets" makes much sense as a coherent sector.  Many EM funds are typically 70% SE Asia so holding both EM and SE Asia implies a lot of duplication.  EM excluding SE Asia is better served in "Frontiers ". Though if one were to want a Frontier fund it would probably have to be too a small % to be worth it.

In my portfolio SE Asia, or perhaps Asia generally is taken as a major Geography alongside Europe and the Americas: 42% Americas, 32% Europe (Inc UK) and 24% Asia (inc Japan).  I use an EM fund (B-G EM Leading Companies) for large companies and Matthews SE Asia Small Companies to avoid duplication.  The EM fund also adds a bit of Africa/S America/emerging Europe.