Emerging markets have lagged over the opening half of 2013, leading some investors to take another look at their exposure to these regions.
While the MSCI World is up 18.3 per cent since the start of the year, the MSCI Emerging Markets Index gained just 2.2 per cent. Despite this, BlackRock chief investment strategist Russ Koesterich says investors should consider emerging market options such minimum volatility funds, single-country or regional portfolios and venturing into frontier markets.
Koesterich says: “In light of the recent poor performance, many investors are asking me whether they should be abandoning emerging markets in favor of bets closer to home. My answer: clearly ‘no’ for three new reasons.”