Invest in emerging markets, says The Share Centre

Invest in emerging markets, says The Share Centre
What makes the JP Morgan fund stand out in this space is that the manager takes a long term view of the assets he holds.
Sheridan Admans, investment adviser at The Share Centre
As emerging markets pursue economic growth at pace, improvements in infrastructure should help improve competition and stimulate growth, according to The Share Centre.

Improvement and development of infrastructure in emerging markets is an important factor when seeking to compete on the global stage.  With the emerging markets set to out grow developed economies by 2050, investment in strategic assets such as roads, rail, seaports, gas, electricity, telecommunication and water utilities is key.

Admans said: "By the very nature of the businesses involved with these key services, the companies are naturally seen as being defensive and mature, suggesting reasonable levels of dividends and dividend growth.

“This is further aided by high barriers to entry, strong pricing power, sustainable growth and predictable cash flows making the asset class a relatively safe haven in an uncertain financial world.

"What makes the JP Morgan fund stand out in this space is that the manager takes a long term view of the assets he holds.

“He not only invests in the operators of the assets such as utility companies, but also invests in the providers of the raw materials such as cement and steel companies and also the industrial companies which construct, for example, the roads, railways and power stations.

"The fund is managed by the highly respected Richard Titherington of the JP Morgan Emerging Markets team and together they bring local knowledge to the fore when selecting potential investment opportunities.

"This fund is suitable for those investors wanting emerging market exposure, albeit with a form of defensive feel through the underlying companies. Investment in this fund should be seen to be with a minimum 5 year time horizon.

"As the fund offers exposure to emerging markets, we have rated this fund as high risk, albeit in respect of more common mainstream funds focusing on this investment arena, this fund would rank at the lower end of those given the natural defensive qualities of the underlying investments.

"The JP Morgan Emerging Markets Infrastructure fund has an annual charge of 1.75% and an initial charge of 4.25%.  The minimum initial investment is £1000, with top ups of £100.

"As the fund features in The Share Centre's Platinum 120 range, customers wishing to invest in the JPM Emerging Markets Infrastructure fund will not have to pay the initial charge or purchase dealing commission.  Customers can also invest in the fund from as little as £10".


Next Article: Beware doorstep rogue traders this summer

Previous Article: 69pc will ditch cash for higher risk investments

Comment on this article

Post to

Save money with free newsletters
Sign up for Moneymaker - our free weekly
e-newsletter - today. It could save you
as much as £4,000 a year.

Enter your email:
Subscribe UnSubscribe