By Jean-Baptiste Andrieux, Reporter, Trustnet, 27 February 2024:
Investing in emerging markets offers an exposure to rapidly growing economies, which should hopefully translate into returns for investors.
This has been true over the very long term but the performance of emerging markets in the past 10 years has been uninspiring, trailing far behind developed markets.
However, there are signs emerging markets might be at the dawn of a turnaround..
For investors wanting to build a core exposure to emerging markets via an investment trust, Templeton Emerging Markets – also known as TEMIT – and JPMorgan Emerging Markets are arguably the two main contenders, as they are the largest and most liquid in the IT Global Emerging Markets sector, with assets in excess of £1bn..
TEMIT and JPMorgan Emerging Markets are similar in many ways, as they both have a large-cap focus, employ a bottom-up approach and do not use gearing.
David Johnson, analyst at QuotedData, said: “JPMorgan Emerging Markets could, in a broad sense, be described as a slightly more active approach to emerging markets investing, given its current form, thanks to its large overweight to India and preference for growth stocks.
“TEMIT would be better described as having a value tilt, or at the very least a less ‘punchy’ approach to emerging markets investing given its tilt towards the more developed end of the emerging markets universe.”
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