I tried to do some research about recommended emerging markets investment trusts for 2017. Here are the good articles I found about this subject:
The consensus is that good emerging markets investment trusts are quite expensive.
For this reason, many investors’ portfolios holds the following:
iShares Emerging Markets Equity Index
It has the following region weightings as of July 31, 2017:
- China 26.37%
- Taiwan 14.58%
- India 12.42%
- Brazil 8.73%
- South Africa 8.70%
- Mexico 4.73%
- Russia 4.01%
- Thailand 3.49%
- Malaysia 3.33%
- Others 13.64%
A Guide to Emerging Markets Investment Trusts
When looking for an investment trust to invest in emerging markets, it’s good to keep a few things in mind. If you’re not sure how to choose between the many available options, read our guide to Emerging Markets Investment Trusts. We’ll cover some of the most popular options, including BlackRock, Templeton, and Federated Hermes. These are all excellent choices for many reasons, and we hope this guide helps you make the right decision.
JPMorgan Emerging Markets
While high-interest rates have boosted global growth stocks, the current situation may continue for some time. This will depend on body politics and the reaction of the market to inflation. John and Austin won’t lower their gaze from the long term, but they believe that the trust should suit investors who want to hold it for the long term. They advise investors to consult their own professional advisers regarding tax implications. For more information about the trust, please refer to the prospectus.
JPMorgan Emerging Markets Investment Trust is an investment trust that invests in countries and industries with the aim of generating a total return. JPMAM, a subsidiary of JPMorgan, manages the assets of the trust. This investment trust invests in unquoted and quoted securities. The funds invest more than 15 percent of their assets in listed closed-end investment funds in the United Kingdom.
An actively managed portfolio like the JPMorgan Emerging Markets Investment Trust has managers that use a disciplined, long-term approach to selecting stocks. Their strategy is based on a rigorous stock-picking process based on an analysis of past excess returns. This makes the fund’s returns largely predictable. However, it’s worth noting that some funds charge small incidental fees that are not included in the Pre-sale Illustration.
Templeton Emerging Markets
A mutual fund, Templeton Emerging Markets Investment Trust PLC invests in the stocks and bonds of companies in emerging markets. This type of fund is designed to give investors long-term capital appreciation. The fund uses specialized accounting guidance and U.S. GAAP in calculating its performance. There are several factors to consider before investing in this type of trust. This article will explore some of the benefits and drawbacks of the Templeton Emerging Markets Investment Trust.
The FTEME fund was launched in June 1989 and is currently the largest emerging markets investment trust in the UK. Its shares are traded on the New Zealand and London stock exchanges. It is managed by Franklin Templeton Emerging Markets Equity, a fund with circa $23 billion in assets under management. Its managers look for long-term capital growth and seek to invest in companies with a global presence and significant revenues in emerging markets.
The Fund’s distributions are not guaranteed. The distribution amount fluctuates based on the Fund’s performance. The AST may choose to distribute income or capital gains each year or may choose to reinvest ROC payments. In both cases, the investor is responsible for paying capital gains tax on any further ROC distributions if their ACB falls below zero. However, the distributions may include both income and capital gains, and they are taxable in the year they are received.
The performance of the Fund depends on the composition of its investments. Non-US currency exposure benefited the fund’s performance. Although the fund’s non-US currency exposure weighed in favour of its performance, investors should not expect a similar level of returns. The Fund also incurs expenses to distribute its funds. Its management fee is lower than that of the Series A fund. If the portfolio is exposed to emerging markets, it will be more susceptible to market fluctuations.
BlackRock Emerging Markets
Information on this site is for information purposes only and is not intended to be investment advice. The material contained on this website is based on reliable sources and is subject to change. BlackRock does not intend to distribute or register investment products or services in any jurisdiction. Any opinions expressed herein may change, and BlackRock assumes no responsibility for their accuracy. Any investor should seek independent financial advice before making a decision about investing in the product.
Investors should understand that investments involve risks, and their value may decline. The income from the investment may go down as well, and the price of the units and income from them can increase or decrease. It is important to note that past performance does not guarantee future results. Before investing, seek independent advice and carefully consider all the risks involved. The Funds are not suitable for all investors. The performance of any investment may change from time to time.
The Fund seeks long-term capital appreciation by investing in equity securities of companies from developing nations. It invests at least 70 percent of its assets in equity securities of companies from emerging markets. It may invest indirectly in emerging markets by purchasing American Depository Receipts (ADRs) or Global Depositary Receipts (GDRs) issued by financial institutions. This exposure allows the Fund to purchase stocks or bonds that are priced higher than their peers.
Investors should be aware that BlackRock makes no warranties about the information contained on its website. This includes, but is not limited to, any implied warranties of merchantability or fitness for a particular purpose. The information provided on this website is not guaranteed to be accurate or complete, and BlackRock does not warrant that it will be profitable or will meet its objectives. All yields are variable and no guarantees are made regarding their accuracy.
Federated Hermes
The goal of the Federated Hermes Emerging Markets Investment Fund is long-term capital appreciation through an investment in a diversified portfolio of equity securities and equity-related securities of small and mid-capitalisation companies primarily based in emerging markets. To achieve this goal, the fund invests at least 80% of its net assets in equity securities of emerging market countries. To invest in this fund, you should have a moderate risk tolerance and understand the investment process.
For investors concerned about the growth of their portfolios, the fund’s management does not recommend that they invest in a particular country. The fund’s performance is based on data provided by Morningstar and Broadridge. The index may be based on information from these sources, but HL cannot guarantee the accuracy of the data. As such, investors should use their own judgment when analyzing the performance of an individual stock.
VinaCapital Vietnam Opportunity trust
The VinaCapital Vietnam Opportunity trust is ideally suited to investors looking to access the future upside of the Vietnamese economy. Its latest EGM shows it is a strong opportunity for investors and is the largest closed-end fund in its peer group, trading at a 23% discount. The fund currently trades on the AIM board of London but is undergoing a migration to the main board of the London Stock Exchange. The new regulatory and compliance environment will help VinaCapital Vietnam Opportunity trust to better serve its investors.
The fund is composed of three main holdings: Binh Son refinery and HDBank, two of the most well-known dairy companies in Vietnam. Both companies are responsible for around 8% of the fund’s total assets. Both companies have a low P/E ratio and high ROE. However, investors should note that the Vietnamese stock market is currently experiencing a bearish trend, weighed down by a US-China trade dispute. However, the current market conditions are presenting a great opportunity for investors with a medium-term view.
The VOF’s asset allocation is diversified: four-fifths of the fund’s assets are in listed equity while the remaining fifth is in private equity. The fund has a strategic approach, with approximately 20% of its assets invested in listed real estate equity. A strategic approach, aimed at leveraging Vietnam’s consumption growth story, contributes to the fund’s attractive valuation.
