A fully flexible way to invest
3 minute read
From Argentina to Zambia there are over 50 countries that make up the emerging markets. And each one so very different to each other that you need to be a specialist to uncover investment opportunities and to fully understand the risks. We focus our attention on the Ninety One Emerging Markets Equity Fund, which has the resources and experience to navigate the market.
Who's it for? All investors
The world’s your oyster when it comes to investing, so you don’t have to stick to your home country when looking for opportunities.
Many investors often start out investing in the countries they are familiar with, such as the UK or the US, but for those with a strong constitution and more experience there are plenty of so-called ‘emerging markets’ that may offer long-term growth potential.
There isn’t a universally accepted definition of what an emerging market is, but they are usually countries with economies still very much in the development phase – often with large, young populations, a rising middle class, and the potential for strong economic growth.
Go back 20 years or so, and you’ll find that investing in emerging markets was not for the faint-hearted. At the time, it was plagued by bouts of hyperinflation, political instability, poor regulation and corruption. Fast forward to today and, while the risks have not disappeared, it is quite unrecognisable in comparison. What’s more, it’s an attractive place to invest; emerging markets are home to some of the world’s most innovative and fastest growing companies.
Carefully! While the market may have changed over the last 20 years, it’s important to remember that the risks remain. It’s therefore vital that you take a long-term view when investing in emerging markets. While most experts typically recommend that you should have a time horizon of at least five years, for emerging markets, investors may need to buckle up for far longer.
Previously called Investec Asset Management, Ninety One was founded as a small start-up in South Africa in 1991. We believe the team at Ninety One is one of a small number in the marketplace that has the breadth, depth, experience and expertise to navigate this space. Coupled with this, Ninety One has stuck to a tried and tested investment process by which they construct their portfolios and manage the fund. The long-term performance track record is testament to this. Note that past performance is not a reliable guide to future performance.
The emerging markets equity team is led by Archie Hart, the lead fund manager of this fund, and draws upon an experienced team of analysts. Very few people have left the team over the years, which to us signifies an operation that is working well, and where staff enjoy their roles and environment. If you are looking to expand your investment horizon, this could be a fund worth looking at.
In addition to the Ninety One Emerging Markets Equity Fund, there are more funds on the Barclays Funds List including one other that focuses on emerging markets and a further four that invest solely within Asia. Find out more information on these funds.
To diversify your investment, you may like to consider our own Barclays Ready-made Investments (RMI). The RMI are just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified one-stop solution for investors. Ready-made Investments are not the only funds that we offer and they won’t be appropriate for everyone.
Past performance of the fund and its manager are not a reliable indicator of their future performance.
We don’t offer personal investment advice so if you’re unsure you should seek that independently.
Funds are designed for the long term so you should only consider them if you can stay invested for at least five years.
These are our current opinions but the future, as ever, is uncertain and outcomes may differ.
Correct at the time of publishing.
Read the Assessment of Value report [PDF, 683KB] for funds run by Barclays.
The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and their effects on you will depend on your individual circumstances.
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