Emerging / Frontier Market fund

[chinnyman]

In my ISA, I have UK exposure and Global all cap.

I'm thinking maybe I should have some emerging market,Frontier market .


Aberdeen Latin America seems interesting.

Is there any other cheap funds that have a good mix?

[simong800]

What is it that interests you about this one?

[Jawls]

If you have a global all cap you already have EM exposure.

There’s nothing necessarily wrong with wanting be overweight EM, but be aware that is what you’re proposing.

[DonkeyApple]

si800 said:

What is it that interests you about this one?

Going short. LatAm is historically the best at defaulting. It a more robust religion than Catholicism.

If anywhere is going to implode on recession economics it's going to be a country in SA and then the others will rush to be on trend.

It's a good debate though, if money is tightening up so people are beginning to question the validity of forward ratings of tech firms such as the FAANGS etc, what are the implications on money supply for emerging markets and small caps? Logic would suggest even worse on the whole?

[chinnyman]

Love the comments all.

Someone mentioned it in passing so it just got my brain in a bit of fireworks internet research mode.

LA seems to have done well this year interestingly enough.
Maybe I'll just stick with Global all cap...

[Vanity Projects]

Emerging markets have had a bumper start the year - Brazil is about 14/15% year to date, and relative to the US stocks most globally are cheaper although the US is doing it's best to correct and fix that

Of the other markets, China is the one pumping liquidity into the markets and obviously Russia will have some upside if Ukraine becomes a nothing burger, both like SA markets have their risks so trade according to your own risk threshold.

[jeff m]

Vanity Projects said:

Emerging markets have had a bumper start the year - Brazil is about 14/15% year to date, and relative to the US stocks most globally are cheaper although the US is doing it's best to correct and fix that

Of the other markets, China is the one pumping liquidity into the markets and obviously Russia will have some upside if Ukraine becomes a nothing burger, both like SA markets have their risks so trade according to your own risk threshold.

I'm not sure I'd call it a bumper start, but my EM fund is the only one showing "green" YTD
My European emerging jumped 5.7% yesterday, not a normal daily gain for a fund. (That's a Russia heavy fund)

Should somebody have Emerging market exposure. Of course, but it should be in proportion to your other holdings
Look at country P/Es, that will give a half decent view of possible upside. Current P/E v. P/E over the last year.
Look at fund flows, see where the smart money is going, It doesn't mean you should follow the herd, but it's good to be aware.