Emerging markets learning from their past mistakes

Although emerging markets share some common themes, it is debatable whether they should still be viewed as one asset class because there are considerable variations in returns from different regions

UK investors have been aware of the emerging markets investment story for some time now and, attracted by the potential alpha on offer, the more sophisticated ones have included an allocation to emerging markets within their portfolios. However, as these markets continue to develop and mature, additional factors are thrown into the equation that investors and their advisers should consider when looking at emerging markets. The first of these is whether emerging markets should still be viewed as one asset class, or whether in fact investors should think about differentiating between grou...