Eve Maddock-Jones, Trustnet, 25 March 2022:
In the midst of ISA season, several fund pickers highlight a range of broad and specific emerging market portfolios to consider holding.
Emerging markets are typically classed as a riskier investment versus developed market options such as the UK and the US, and this factor has only increased in recent weeks due to Russia and the surrounding geopolitical issues, according to Darius McDermott, managing director of FundCalibre.
Several emerging funds found themselves caught out with a weighty exposure to Russia when Putin decided to attack the Ukraine just over a month ago, but there are other risks around China which McDermott said have made it a tricker asset class to navigate…
However, there are advantages to the asset class such as lower valuations, which was highlighted by the sharp rebound in Chinese stocks earlier this month, and higher potential growth than their developed peers over the long term. Allocation and position size will be the key…
JPMorgan Emerging Markets
The most popular recommendation among experts was the JPMorgan Emerging Markets trust, with three people highlighting it as a strong option for emerging market investors.
Emma Bird from Winterflood and Priyesh Parmar of Numis investment bank suggested the fund as a core option in a diversified portfolio.
The pair noted the strength of “highly experienced” manager Austin Forey, who has run the fund since 1994 and was joined by John Citron last year as co-manager…
The £1.5bn trust is currently on a 9.5% discount and James Carthew, head of investment companies, QuotedData, who also recommended the trust, noted that the management fees were cut last year to 0.75%, meaning “the trust now comes with the lowest expense ratio in its sector”.
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