Four of the best investment trusts for investing in emerging markets

Investors need to tread very carefully in this risky sector. Here are the best ways to approach it

The traditional argument for investing in emerging markets (EMs) was compelling. Their economies were growing fast from a low base. Growth was initially based on commodities and basic industries but, in time, countries would move up the value chain, as Asia had demonstrated.

Young populations meant plentiful cheap labour. The growth of the middle class opened opportunities for businesses that were mature in the developed world. Initially, investing was as easy as “BBC” – banks, brewers and cement – but new technology in areas such as mobile communications would enable countries to cut corners to achieve prosperity, saving on expensive infrastructure.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.