“Risk is the permanent loss of capital, not underperforming an index”
- Investing in emerging markets offers the potential to generate attractive long-term returns from companies that look to benefit from faster rates of growth versus those based in the developing world.
- Emerging markets also present a distinctive context in which to operate a business, with constant evolution – and sometimes revolution – in economic, political regulatory and financial conditions.
- Understanding sustainability is key to minimising long-term risks in the portfolio.
- Alignment of interests is key and selectivity crucial.