Exploring emerging markets

Russell CEO Matthew Arnold says Kiwis don’t invest in emerging markets (EM) stocks at all, and most funds are underweight because “it’s quite hard to do.”

“Not many NZ fund managers trade in them so there are a limited number available to NZ investors in tax efficient wrappers.”

Russell’s Global Share Fund currently has a 12.33% weighting towards EM via specialists Red Wheel and Oaktree Capital Management.

Redwheel investment committee and co-portfolio manager Thomas Allraum says the firm thinks that after a decade or more in the doldrums, we are entering a period of emerging markets outperformance.