Accessing the growth potential of emerging markets
Old Mutual Unit Trusts has launched an exciting new fund: The Old Mutual Global Emerging Markets (GEM) Fund taps into the wealth-generating opportunities of emerging markets and is now available for investment.
Over the past 10 years there has been a strong shift underway, with global emerging markets, led by China, in the process of taking over the global growth leadership position from the developed markets. Fund manager Anwaar Wagner believes that this shift will gain strength for many years to come. “This is due to the favourable fiscal health and demographic profiles supporting the process of urbanisation, infrastructure improvement, job creation, wealth creation and consumer spending within GEM,” he says.
This fund invests in shares of companies listed on emerging market stock exchanges. It may also invest in those companies listed on developed market exchanges that generate more than 50% of their assets, revenue or profits from emerging markets. Old Mutual Global Emerging Markets Fund would suit investors who want selective access to the growth potential of emerging markets. These investors should be able to tolerate stock-market and currency volatility.
“While there are specific risks associated with investing in emerging markets,” cautions Anwaar, “these political and governance issues are improving all the time and we believe that there is greater risk to a portfolio in not having exposure to the higher-return potential available in emerging markets.”
For more information about the fund, view the fact sheet or contact your financial advisor.