Why direct EM investments are not essential

EMERGING MARKETS

Alexandra Jackson of Rathbone Global Opportunities fund on why she has no direct investments in emerging markets

“How can you run a global growth fund with no direct investments in emerging markets?” Investors ask this question of us all the time, as though the two are now synonymous. Our typical investment is a small- or mid-cap stock that demonstrates above-average growth, and has a name most would not recognise – there is certainly no shortage of these types of stocks to be found in the Brics or the frontier markets. Yes, there are opportunities out there and, undoubtedly, there is money to be made. However, there are also risks attached when buying emerging markets, all of which have the pot...