Credit Suisse chief investment strategist for Australian private banking David McDonald remains cautious about adding to emerging market assets at the moment as he expects better entry points to emerge, but agreed the current volatility might be a good opportunity for sophisticated investors without any emerging market exposures “to consider taking a small position within an overall diversified portfolio”.
Morgans senior strategy analyst Rebecca Sullivan said at the moment she would only consider recommending an increased allocation to emerging markets for portfolios of $1 million or more.
For those wealthy investors already considering buying more emerging market assets, advisers stressed the importance of considering market risks individually rather than lumping all emerging economies together.
The consensus is to avoid commodity-driven markets such as Brazil and Russia and look to industrialised exporting nations that are running large current account surpluses, such as China, South Korea, and Taiwan, Mr Mileski said.
Credit Suisse favours Taiwan, China and Hong Kong, but also sees some value in Eastern European markets and Mexico.
Macquarie Private Wealth advisers have a preference for China, but Mr Lakos said the best way for retail investors to benefit from Chinese growth was probably through investing in global companies that are exposed to it, such as major US-listed consumer companies.
Mr Ryder also said the best way for Australian retail investors to benefit from emerging market growth is through investment in big multinational companies that are listed in developed markets. “BHP Billiton and Rio Tinto which provide significant exposure to Chinese growth,” he said.
Ms Sullivan is less bullish on China. She said the emerging markets that offer the best opportunities are South Korea, Vietnam and Taiwan, but agreed with the strategy of investing in ASX-listed companies that are growing earnings from these Asian markets. Stocks she highlighted included Toll Holdings, which has an Asian transport business and ANZ Banking Group which has expanded into Vietnam and other parts of South East Asia.
For those investors who do decide to invest in emerging markets different regulatory standards and less access to stock research mean less transparency making stock picking and direct investment perilous.
Those with enough to invest can place a mandate with a fund manager focused on the region they want exposure to. But for most investors, choosing an exchange traded fund (ETF) is widely considered the easiest and most cost effective way to access emerging markets.
Another investment tool are wrap accounts - managed investments that require much lower minimum investments than investing directly with a specialist emerging market equities fund manager.
Morgans senior strategy analyst Rebecca Sullivan said at the moment she would only consider recommending an increased allocation to emerging markets for portfolios of $1 million or more.
For those wealthy investors already considering buying more emerging market assets, advisers stressed the importance of considering market risks individually rather than lumping all emerging economies together.
The consensus is to avoid commodity-driven markets such as Brazil and Russia and look to industrialised exporting nations that are running large current account surpluses, such as China, South Korea, and Taiwan, Mr Mileski said.
Credit Suisse favours Taiwan, China and Hong Kong, but also sees some value in Eastern European markets and Mexico.
Macquarie Private Wealth advisers have a preference for China, but Mr Lakos said the best way for retail investors to benefit from Chinese growth was probably through investing in global companies that are exposed to it, such as major US-listed consumer companies.
Mr Ryder also said the best way for Australian retail investors to benefit from emerging market growth is through investment in big multinational companies that are listed in developed markets. “BHP Billiton and Rio Tinto which provide significant exposure to Chinese growth,” he said.
Ms Sullivan is less bullish on China. She said the emerging markets that offer the best opportunities are South Korea, Vietnam and Taiwan, but agreed with the strategy of investing in ASX-listed companies that are growing earnings from these Asian markets. Stocks she highlighted included Toll Holdings, which has an Asian transport business and ANZ Banking Group which has expanded into Vietnam and other parts of South East Asia.
For those investors who do decide to invest in emerging markets different regulatory standards and less access to stock research mean less transparency making stock picking and direct investment perilous.
Those with enough to invest can place a mandate with a fund manager focused on the region they want exposure to. But for most investors, choosing an exchange traded fund (ETF) is widely considered the easiest and most cost effective way to access emerging markets.
Another investment tool are wrap accounts - managed investments that require much lower minimum investments than investing directly with a specialist emerging market equities fund manager.
Source:News in Hindi
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