8th November 2007

Trustnet Bulletin: New: building with BRICs; emerging markets boom

The four BRIC (Brazil, Russia, India and China) economies are among the largest and fastest growing in the world, and have recorded significantly higher growth rates than the Western industrial nations in recent years.

Although China, and to a lesser degree India, has been grabbing all the headlines, the valuations are starting to look expensive in those markets. Read about the more attractive opportunities on offer in Brazil and Russia.

Asset allocation account for more than 90% of a portfolio’s risk/reward characteristics, an asset allocator’s stance on emerging markets has been the key to top quartile performance in recent years. Over the past year, the average global emerging market fund has generated 48.3% returns, according to Trustnet. While over five years returns rise to 295%. This article explains how rewarding this sector has been, and how it continues to grow.

HMRC proposals to streamline the tax regime for offshore funds have been given a mixed reception by fund groups and advisers. While in some respects these represent a relaxation that increases accessibility, in others they impose additional administrative burdens and limit tax-management options. For investors, the changes will require a strategic re-think about the nature of the instruments they are holding. We set out the key issues, with industry comment, here.