Neptune Emerging Markets
The potential for growth in the emerging markets is considerable: within the next decade China is expected to supersede the US and the EU to become the world’s most important trading nation. In the long term, emerging markets are not only well positioned to become the primary drivers of global economic growth, but are also well placed to provide strong returns for long-term investors.
In 1999, emerging economy external debt amounted to more than 40% of GDP; more recently it has fallen below 25%, while foreign currency reserves have soared (IMF Figures, 2009) and the average rate of inflation is very low relative to history. These positive structural developments make these markets considerably more attractive to western investors who might previously have been deterred by the risks that tend to be associated with emerging market investment.
James Dowey, Neptune’s Chief Economist, states that,
“From around 2002 to 2007 the global economy relied to an unsustainable extent on the debt-fuelled spending of Western households – but the Western financial crisis that we are trying to climb out of has brought about the end of that pattern. Over the coming decade we expect emerging economies to drive the growth of the global economy to a much greater extent than ever before. Investors simply need to be exposed to the emerging economies.”
For example, the rise of the consumer is one of the most important long-term developments in recent years for many emerging economies. Looking ahead consumers in emerging markets are likely to account for an increasingly large proportion of global consumption, thereby driving economic growth both domestically and globally.
Neptune manages a number of funds giving investors exposure to the emerging markets, from global portfolios to single region funds.
Our Retail Emerging Market Products Include:
Neptune Emerging Markets Fund: This is our pan-global emerging markets vehicle; a high conviction portfolio of best ideas that aims to deliver income alongside capital growth.
Neptune China Fund: Fund Manager Robin Geffen positions this Fund in sectors he believes have the greatest exposure to both domestic and international growth themes such as the rising spending power of the ever expanding Chinese middle class.
Neptune India Fund: The managers use Neptune’s in-house research to position this Fund in stocks and sectors with the greatest exposure to such growth trends as India’s young population driving increasing levels of domestic demand.
Neptune Latin American Fund: Latin America has become a focal point of the global economy and is well placed to benefit from demand for the soft and hard commodities it produces. This Fund provides investors with exposure to a wealth of compelling opportunities across the continent.
Neptune Russia & Greater Russia Fund: This is a diversified portfolio focusing on large and liquid stocks, benefiting from the experience of Robin Geffen, who has been investing in Russia for over fifteen years.
Neptune Asia Pacific Opportunities Fund: A rising and increasingly affluent middle class population is driving consumer spending in Asia; the largest and most heavily populated continent on earth. This Fund aims to pinpoint the countries, industry sectors and companies that are best placed to benefit from this and other key themes.
Neptune Greater China Income Fund: This Fund identifies companies that we believe are able to grow dividends significantly while also delivering long-term capital growth. It could be held as a more cautious alternative to traditional China growth funds, for investors who want to diversify their income sources outside Europe.
For more information including fund facts, sales aids, our Emerging Markets brochure and to find out how to invest, please click here.