Barings: Emerging markets appetite increases

More people are seeking investment opportunities in emerging markets.

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The number of investors wanting exposure to emerging market opportunities in the next 12 months has risen to 12% this year from 9% in 2009, figures from the firm have shown.

Data produced by the IMA shows a yearly increase in assets under management in global emerging market equities from £6.2bn in 2009, to £9.6bn in 2010 and £13.1bn this year.

“We are seeing an increasing number of investors looking for exposure to emerging markets year-on-year and we anticipate this trend will continue given the enormous potential for growth compared to developed markets,” said Barings’ head of UK retail distribution, Rod Aldridge.

In the short term, investors were likely to chose a portfolio covering all emerging markets (9%) and the BRIC region (9%). However, in the long term, investors preferred a spread across all global emerging markets (11%), BRICs (7%) and Asia (6%).

“Investing across global emerging markets as a whole is particularly favoured over the short and long term,” said Aldridge. “Investors should always remember that emerging markets can be very volatile and investing in them may not be suitable for everyone. If in any doubt, investors should consult a professional adviser.”