Slideshow 5 Intriguing Emerging Markets for Advisors, Clients

  • May 30 2012, 1:17pm EDT
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5 Intriguing Emerging Markets for Advisors, Clients<br><br>

For several years, wealth managers and their clients have been cashing in – some better than others – on mutual funds, ETFs and individual stocks from emerging markets like Brazil, Russia, India and China – the so-called BRICs.

And while those countries still offer some value, investors are paying closer attention to investment opportunities in other areas of the world.

All of the major Wall Street brokerage and wealth management firms have expanded their research and investment activity in Latin America and are looking for the next great companies and industries in places like Eastern Europe, the Middle East, Asia and Africa.

Here’s a closer look at five countries – some familiar, some not – that advisors and their clients should spend time investigating in 2012.

Source: Allan Conway, head of emerging markets equities at Schroders.


Valuations are attractive in China and we believe the risk of a hard landing for the Chinese economy is overdone, although growth is clearly moderating.

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The outlook for Russia is supported by attractive valuations, an elevated oil price, robust consumption growth and easing inflationary pressure in the near term.

South Korea<br><br>

Some improvement in growth is now discernible in South Korea. Presidential and general elections are due to be held later in the year which should support growth and foreign investor flows remain strong, boosting the financial accounts surplus. We remain overweight on South Korea owing to attractive valuations and strong earnings.


Economic indicators continue to rebound following the flooding in 2011 and should accelerate as aid, insurance, remittances and government spending are distributed. Key drivers of growth over 2012 will likely be infrastructure expenditure, resumption of consumption and an increase in corporate activity. Valuations are reasonable and we remain overweight the market.

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Qatar is an opportunistic allocation to an off-benchmark market. The investment in Qatar relates to strong bottom-up ideas including companies that are benefitting from the significant government spending program currently under way in the burgeoning Middle East nation.

Also see:

Cashing In On 5 Top Latin American Markets

10 Elections Wall Street Will Be Watching in 2012

5 Best-Performing Growth Mutual Funds This Year