Emerging markets 'attractive for investment'

Because economic growth in emerging markets ’typically outpaces’ that of the developed world, they represent an important investment opportunity, according to a fund manager at BlackRock.

Daniel Tubbs of the firm’s global emerging markets team noted that compared to the 38 per cent economic growth for G7 countries since 1992, emerging market economies increased by an average of 130 per cent.

Mr Tubbs highlighted the Middle East, domestic Brazil - which represents the second-largest economy in the Americas, according to its embassy in London - and Russia as areas demonstrating attractive growth for investors at the moment, pointing out that five of the top ten largest firms in the world are now based in emerging markets.

He added that there has been a ’major shift’ toward investment in these markets in the past two decades, but cautioned that as sentiment towards them is ’always changing’, it is important for investors in emerging market funds ’to have wide flexibility and maintain a highly-diversified portfolio’.
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