Stephen Cranston Associate editor

Here is the age-old argument that is still put to SA-based investors: You live in an emerging market, why would you want to double on risk by investing in a global emerging market fund? It is true that emerging markets often behave the same way during a crisis such as the Tequila crisis of 1994 or the Asian crisis of 1997, but such emerging market specific crises have not been a characteristic of the past 15 years. Instead, there has been a uncoupling of returns. The recent crash in the Brazilian real might have led to a worldwide loss of confidence in emerging markets — yet the two giants of the sector, China and India, carried on as if nothing had happened. With a growth rate of less than 1%, SA has more in common with a developed market such as Belgium than with the fast-growing dragons and tigers. What is true, however, is that SA is being seen as a very good country from which to manage emerging markets equities. It has a competitive, highly skilled asset management industry, o...

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