Emerging markets recommended to foreign investors

Investors looking to make money abroad have been advised to take a fresh look at the emerging markets.

Independent financial advisers polled by JP Morgan were 61 per cent in favour of investing in the emerging markets, particularly Asia.

Despite the recommendations of IFAs, an average UK private investor holds only 0.1 per cent of their portfolio in the regions.

Richard Titheringon, the chief investment officer for emerging markets at JP Morgan Asset Management, said: "UK investors should be structurally overweight in emerging markets because they should outperform developed market equities, and rise in weightings in global equity indices over the next five to ten years."

The emerging markets make up 80 per cent of the world population but only 34 per cent of the world GDP and 12 per cent of world equity market capitalisation.

However, JP Morgan Asset Management has predicted that emerging market GDP could rise to 43 per cent and market capitalisation could reach 26 per cent by 2020.

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Posted by Thomas Smith