The new wave of democracy

The fall of the Berlin Wall in 1989 was the start of a two-decade bull run in emerging European equities. The twin forces of a desire for democracy and basic living standards helped bring down the symbol of Communist repression.

The collapse soon launched a number of Eastern Europe and emerging Europe funds, investing in equity, fixed interest and currency markets. An investor who took the plunge around this time would have been rewarded with some extraordinary long-term gains. The events in the Middle East and North Africa have a similar resonance, but asset flows into the region have not been huge, when compared with flows into the broader emerging markets. Are investors missing an opportunity they will regret in two decades’ time? Certainly in sub-Saharan Africa, there have been a number of good funds brough...