MutualFundWire.com: BlackRock Proposes a Rethink of All Things Emerging
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Friday, August 23, 2013

BlackRock Proposes a Rethink of All Things Emerging


BlackRock's [profile] Jeff Shen and Rodolfo Martell, managing director and head of emerging markets and managing director and PM, respectively, say that investors need to consider how much the emerging market investment landscape has changed and act accordingly, reports Business Insider's Mamta Badkar.

Shen and Martell write on the BlackRock site that investors should realize methodologies that served them well since MSCI launched the very first emerging markets index won't give them the risk-adjusted returns they seek over the next 25 years, Badkar writes.

Who knew?!

Badkar quotes their piece, which reads, "We suggest equity investors re-examine their holdings both at the broad index level and the individual security level…We would also point out that EM investing entails more than investing in companies that are domiciled in developing countries…As companies expand their footprint globally, their revenues become more diversified. You need not invest in an EM-domiciled country to benefit from EM growth."

Shen and Martell say that the average investor is underweight in emerging market investments and should have an allocation close to 18 percent compared to the average 5 percent, Badkar writes.

To read more, click here.


Printed from: MFWire.com/story.asp?s=45678

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